U.S. Dollar Trading (US) despite no reversal in stock markets the USD came under heavy selling pressure on a combination of negative news and weak US data. Moody’s warned that the US could be put on negative review if the debt ceiling issue is not resolved. Weekly Jobless claims at 422k vs. 415k forecast. In US stocks, DJIA -41 points closing at 12248, S&P -1 points closing at 1313 and NASDAQ +4 points closing at 2773. Looking ahead, May NFP forecast at 150k vs. 244k previously. The Unemployment Rate forecast at 8.9% vs. 9% previously. May ISM Services forecast at 54 vs. 52.8 previously.
The Euro (EUR) was the strongest currency in the market able to rebound to fresh multi week highs on talk a Greece solution was close. This combined with the US Debt rating news to help the EUR/USD break above 1.4500. ECB President Trichet spoke overnight about the possibility of a single EU Finance Ministry. Overall the EUR/USD traded with a low of 1.4323 and a high of 1.4515 before closing the day around 1.4500 in the New York session. Looking ahead, May EU PMI Services forecast unchanged at 55.4.
