Mens Wearhouse Inc
The apparel retailer said it earned 10 cents a share in the first quarter. Analysts had expected the company to break even.

Pep Boys-Manny Moe & Jack
The automotive retailer and service chain reported profit excluding some items of 14 cents a share in the first quarter beating estimates of first-quarter earnings of 8 cents a share, according to a consensus survey by FactSet Research.

Ceradyne Inc
The maker of ceramic body armor for U.S. soldiers cut its 2009 full- year profit forecast to about 70 cents a share, compared with a forecast on April 28 of at least $1.60 a share.

Texas Instruments Inc
The second-largest U.S. chipmaker raised its second- quarter sales and profit forecasts as demand improved for wireless semiconductors.

Romps through any technical resistance at $1.4070 area for trade to $1.4095 on broad-based, moderate sized buying, a trader says. Trader says that "all stops are done," but there's little to stop the euro now this side of resistance that he pegs at $1.4158 area.

The dollar fell against the euro for the first time in three days as speculation the global recession may be ending damped demand for the U.S. currency as a refuge.
The pound advanced versus the dollar as Britain’s political turmoil eased and house prices showed signs of stabilizing last month. Goldman Sachs Group Inc. recommended that its clients buy the euro versus the dollar, citing a recovery in global growth expectations and a “broader pickup” in demand for higher- yielding assets.
“Investment is slowly leaking out of the dollar, into emerging markets and other higher-yielding countries on signs of a green-shoot recovery,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp., the world’s largest custodial bank. “We are in a long-term trend of a controlled decline in the dollar.”
The traded-weighted Dollar Index dropped 0.8 percent to 80.931 after the U.S. government approved 10 banks to buy back $68 billion of government shares. Treasury Secretary Timothy Geithner called the repayments an “encouraging sign of financial repair.”
The 16-nation euro will rise to $1.45, said Goldman Sachs in a research note today, saying the Federal Reserve will refrain from raising the target rate for overnight lending between banks “for a considerable period of time” in response to a slow recovery.
“The timing is now opportune,” Goldman Sachs wrote. “We think the level of growth will remain below trend, and U.S. rates will be kept low for a considerable period of time.”
The dollar rose the most against the euro in five weeks on June 5 after the Labor Department reported that U.S. job cuts slowed to 345,000 in May, the lowest level in eight months.
The employment report raised speculation that the Fed will boost the target lending rate to at least 0.5 percent by the end of the year. Fed funds futures contracts showed today a 45 percent chance of a rate increase by November, compared with 27 percent odds a week ago.
The pound advanced against the dollar for a second day, increasing 1.4 percent to $1.6274 after the Royal Institution of Chartered Surveyors said the number of respondents in a monthly survey saying home values fell exceeded those reporting gains by 44.1 percentage points, the best reading since November 2007.
Sterling also appreciated on speculation Prime Minister Gordon Brown fended off calls to step down following a series of ministerial resignations and a drubbing in local and European Union elections.

High print was around $1.4050 and the driver was "all stops," according to one veteran trader, saying that small but persistent stop-loss buy orders have provided much of the lift in the euro from about $1.4025. Offers remain to $1.4050 area but chatter suggesting the stop zone may exist to the tech resistance at $1.4070 area noted earlier.

Action remains mixed among the major indices. Small- and mid-cap stocks are also having a quiet session, though they are trading with respectable gains; the S&P 400 is up 0.4%, while the Russell 2000 is up 0.3%.
Separately, Treasury Secretary Geithner stated that he doesn't anticipate needing to ask Congress for more TARP funds, according to Reuters. The comment came after the Treasury told 10 of the nation's largest banks that they could repay TARP funds.

The Dollar Index has dropped 0.9%, helping drive a 1.0% increase in the CRB Commodity Index.
As for individual commodities, crude oil prices are up an impressive 1.7% to $69.25 per barrel, which means oil prices are now up more than 55% year-to-date.
Natural gas prices are under pressure, however. Futures contract prices were recently quoted 1.9% lower at $3.66 each.
Precious metals are garnering interest. Gold prices are extending their year-to-date advance above 8% by climbing 0.4% to $955.20 per barrel. Silver is up 1.1% to $15.12 per ounce.

Cable extends rally to $1.6270 with reported resistance/offers noted toward $1.6280. Above here and rate can edge on to $1.6300 ahead of $1.6335 (61.8% $1.6664/1.5803).

According to Reuters, the Treasury has approved $68 billion in TARP repayments from 10 of the 19 largest U.S. banks. The announcement hasn't created much of a surprise since it was already expected that up to 10 banks would be allowed to repay in excess of $50 billion in TARP funds. In turn, the KBW Banking Index has reversed its recent gains to trade with a 0.4% loss.
Separately, wholesale inventories for April slipped 1.4%, which is a bit steeper than the 1.2% decline that was expected. The previous report was revised lower to reflect a 1.8% decline. Wholesale inventories have declined for eight consecutive months.

Oil stocks have firmed during early afternoon trade, supported by rises in crude prices, with BP (BP.) now leading the sector. Banks have also made a little headway, with BNP Paribas (BNP) and Barclays (BARC) continuing to offer most support. Lloyds (LLOY) has held more steady however, following the initial jump this morning on news that it will be shedding 1,500 jobs and closing down its Cheltenham & Gloucester branches. Mining stocks have also held steady during the day, supported by positivity in the metals markets, particularly in London, where Rio Tinto (RIO) and Xstrata (XTA) are offering most support to the blue-chip index.
The FTSE-100 is up 15pts (+0.3%), CAC-40 is up 13pts (+0.4%), and the Xetra-DAX is flat.

The Dow is up modestly, while the S&P 500 and the Nasdaq sport healthier gains. Semiconductors are showing particular strength following an upwardly revised earnings forecast from Texas Instruments (TXN 21.07, +1.30) -- the Semiconductor Index is currently up 3.5%.
Materials stocks are also showing considerable strength by climbing to a 1.5% gain, which is more than any other major sector ithin the S&P 500. Part of the sector's move is owed to a rise in commodity prices amid a weaker U.S. dollar.
As such, the CRB Commodity Index is currently up 0.4%, while the greenback is currently down 1.0%.

Names said to be on the list: American Express, Bank of New York Mellon, Capital One, Goldman Sachs and J.P. Morgan. Morgan Stanley and State Street Bank also might be named. Sources suggest the Obama Admin. might still be interested in setting compensation and other banksing policies, however.

Reported resistance around $1.6200, earlier reports placed retail sell interest to $1.6205, continues to provide a decent hurdle to further upside progression, with rate currently trading back around $1.6170. Bids seen placed between $1.6160/50 and while above keeps upside well in focus, one trader suggests. A break below $1.6150 to allow for a deeper move toward $1.6135/30.
A break above $1.6205/10 now seen needed to boost upside potential, one trader suggests, though reports note that small offers seen placed between $1.6215/30 could make progress a bit sticky. Near term tech target seen at $1.6242 (1.618% swing of the pullback from $1.6178 to $1.6075).

Reported offers in this area prove sufficient to contain the cross ahead of the Asian highs. Light bids seen at Y136.50/30, more at Y135.90/80.

Data released:
01:30 Australia ANZ Job Advertisements (May) -0.2% -7.5%
01:30 Australia National Australia Bank's Business Conditions (May) -14 -10
05:00 Japan Coincident Index (Apr) 85.8% 84.8%
05:00 Japan Leading Economic Index (Apr) 76.5 75.5
06:00 Germany Trade Balance (Apr) 9.0B 8.0B
08:30 UK DCLG House Price Index (YoY) (Apr) -13.0% -13.6%
10:00 Germany Industrial Production s.a. (MoM) (Apr) -1.9% -1.3% 0.0%
10:00 Germany Industrial Production s.a. w.d.a. (YoY) (Apr) -21.6% -21.1% -20.4%

World Bank President Robert Zoellick said China may seek to diversify its foreign currency holdings over time, moving away from U.S. dollar reserves. “Over time I could see China moving to some further diversification of its reserves,” Zoellick said at a conference today in Montreal. Still, he said, “China has been very sensitive about maintaining its exchange rate versus the dollar. You cannot do that unless you are buying dollars.” People’s Bank of China Governor Zhou Xiaochuan in March urged creation of a “super-sovereign reserve currency” after Chinese Premier Wen Jiabao said he’s “worried” a weaker dollar might hurt China’s investment in U.S. Treasuries. Zhou proposed using the International Monetary Fund unit of account, known as “special drawing rights,” as an alternative
The pound rose against the dollar for a second day after the Royal Institution of Chartered Surveyors said the U.K. housing market is “stabilizing,” stoking optimism the worst of the recession is over. The pound also gained versus the euro and yen on speculation Prime Minister Gordon Brown has fended off calls to step down following a series of ministerial resignations and a drubbing in local and European elections. Gilts advanced as the government sold all 5 billion pounds ($8 billion) of the five- year securities it offered today.
“The housing data and the improvement in Gordon Brown’s fortunes for the time being are providing support for the pound,” said Gavin Friend, a markets strategist in London at National Australia Bank. “There’s an appetite for risk out there today.”
EUR/USD bounce at 1.3850 ahead of the European session opening has extended to levels above 1.3935 intra-day high to reach 1.3965. at the moment the Euro is pulling back below 1.3935.

EUR/USD
Offers: $1.3970/80, $1.4000/10, $1.4040/50
Bids:$1.3925/20, $1.3910/00, $1.3880, $1.3855/50

USD/JPY
Bids: Y97.50, Y97.00
Offers:Y98.86/90, Y99.50/55, Y99.70/75

EUR/USD $1.3995, $1.4000, $1.3800, $1.3750, $1.3700
USD/JPY Y98.00, Y98.35, Y98.45, Y97.00
EUR/CHF Chf1.5075
NZD/USD $0.8000
USD/CAD C$1.1050, C$1.1020

The dollar fell against the euro and the yen as stocks rose and speculation the global recession may end this year damped demand for the U.S. currency as a refuge.
The dollar also weakened as the U.S. prepared to sell $35 billion of three-year notes today, part of a plan to issue a record amount of debt to finance economic stimulus measures. Nobel prize-winner Paul Krugman said yesterday the recession may be over by September. The pound rose as the U.K. political turmoil eased and a report showed house prices stabilized. The ringgit weakened after Malaysia had its debt rating cut by Fitch Ratings for the first time since the Asian financial crisis. “Concern over bond supply has halted, for the time being, the dollar correction,” said Henrik Gullberg, a foreign- exchange strategist in London at Deutsche Bank AG. “The market is wary over whether demand can be sustained at the strong levels we’ve seen at previous auctions.” The euro rose against the dollar for the first time in three days, climbing 0.2 percent to $1.3963. The yen strengthened 0.5 percent to 98.03 per dollar and rose 0.2 percent to 136.61 against the euro.The pound appreciated 0.5 percent to $1.6176 and 0.2 percent to 86.41 pence per euro. The ringgit fell 0.8 percent to 3.6009 per yen. If demand is “strong” at this week’s Treasury auctions the dollar may strengthen to $1.35 per euro, Gullberg said.

Resistance 3: Y100.70
Resistance 2: Y99.70
Resistance 1: Y98.80
Current price: Y98.39
Support 1: Y97.70
Support 2: Y96.50
Support 3: Y95.50
COMMENTS: Dollar retreats as on Friday the rate failed to break above the key resistance at Y98.80 (50% of Y110.65 - Y87.10 decline). Support comes at Y97.70 (50% of Friday’s rise), further – at Y96.50 (Friday’s lows). Further support is near Y95.50 (Jun 03 lows). Break above Y98.80 opens the way to Y99.70 (May 07 high). Above the key level is around Apr 10-12 highs on Y100.70.

Resistance 3:$1.6320
Resistance 2:$1.6280
Resistance 1: $1.6160
Current price: $1.6115
Support 1: $1.6100
Support 2: $1.5940
Support 3: $1.5800
COMMENTS: Sterling heads for $1.6160 resistance with a break above opens the way up to $1.6280 (23.6% of $1.5060 - $1.6670 rise). Next resistance is near $1.6320. Support comes at $1.6100, stronger – on $1.5940, then – at $1.5800 (Monday’s lows).

-April ind. output m/m below all forecasts (MNI median unch)
-March m/m revised up to +0.3 (unch)
-April real sa manufacturing output -2.9% m/m
-March manufacturing output revised up to +0.6% m/m (-0.4%)

Resistance 3: Chf1.1170
Resistance 2: Chf1.1030
Resistance 1:Chf1.0980
Current price: Chf 1.0900
Support 1: Chf1.0880
Support 2: Chf1.0800
Support 3: Chf1.0650
COMMENTS: Dollar weakens. Support is near session lows on Chf1.0880. Below the losses may widen to Chf1.0800 (May 22, 26 and 27 lows) and then – on Chf1.0650 (Friday’s low). Resistance is around Chf1.0980 (yesterday’s high). Above the rise may extend to Chf1.1030 (38,2% FIBO of Chf1.1740-Chf1.0590 decline) and then – to Chf1.1170 (50,0%).

Stronger crude prices are offering oil stocks a boost this morning, with BP (BP.) and Royal Dutch Shell (RDSA RDSB) leading gains.Traders are also reporting a lot of
interest for miners in the options markets today.

Resistance 3:$1.4160
Resistance 2:$1.4050
Resistance 1:$1.3940
Current price: $1.33926
Support 1:$1.3800
Support 2: $1.3740
Support 3: $1.3630
COMMENTS: Euro still under pressure. Support comes at $1.3800 (yesterday’s lows). Below correction may widen to $1.3740 (50% FIBO of $1.3420-$1.4050 rise) and then – to $1.3640. Resistance is around $1.3940 (yesterday’s high). Break above will open the way to $1.4050 (May 22 high). Above the rise may extend to $1.4160 (50% FIBO of $1.6030-$1.2330 decline).

having bounced in Asia overnight to cover the $68.43 - $69.37 range. The commodity is taking its lead from strength in the equity markets and a weaker dollar this morning, and traders have noted crude's ability to hold relatively firm yesterday, despite bearish pressure coming from these two markets, as being supportive.
The Nymex light sweet front contract is currently up 67 cents at $68.90.

The yen advanced for a second day against the euro and strengthened versus the dollar as declines in Asian stocks increased demand for the relative safety of Japan’s currency.
The yen also rose after the Wall Street Journal reported the Obama administration wants Europeans to put their banks through more rigorous stress tests, raising concern about the strength of the banking system in the 16-nation region.
Standard & Poor’s yesterday cut Ireland’s credit rating for the second time this year, lowering it to AA from AA+, citing the nation’s rising bill for propping up its banks.
The dollar earlier approached a one-week high against the euro as traders added to bets the Federal Reserve will increase its target lending rate this year as the world’s largest economy recovers. Nobel Prize-winning economist Paul Krugman said yesterday the U.S. economy will emerge from recession by September.

EUR/USD initially fell 100 points from $1.3930 to $1.3834. Later rate reprinted earlier highs and showed a new ones at $1.3957.

Prime Minister Kevin Rudd cited by wires saying he would be "very surprised" if official jobs data due later this week don't show an increase in the country's unemployment rate. Thursday's May jobs data are expected to show a 30,000 drop in employment while the jobless rate is expected to rise to 5.7% from 5.4%.

Japan's benchmark stock indices ended Tuesday's session lower across the board, slipping from eight months high seen Monday. The Nikkei 225 was higher by 78.81 points, or 0.80%, to stand at 9786.82. The broader-based TOPIX was 8.65 points lower at 918.24.

Majors close
Nikkei +97.62 (+1.00%) 9865.63
Topix +10.33 (+1.11%) 926.89
FTSE -33.34 (-0.75%) 4405.22
DAX -72.31 (-1.42%) 5004.72
CAC -49.39 (-1.48%) 3289.66
Dow +1.36 (+0.02%) 8764.49
NASDAQ -7.02 (-0.38%) 1842.40
S&P -0.95 (-0.10%) 939.14
NYMEX Crude Oil -17/32 3.9% 93 20/32

Japanese stocks advanced for a second day after a better-than-expected report on U.S. jobs sent the yen to a month low against the dollar, lifting the shares of companies dependent on overseas sales.

Data released
Australia Queen's Birthday
10:00 Germany Manufacturing orders (April) adjusted 0.0% 0.0% 3.7 (3.3)%
10:00 Germany Manufacturing orders (April) seasonally adjusted Y/Y -33.2% - -32.8 (-33.1)%
10:00 Germany Manufacturing orders (April) unadjusted Y/Y -37.1% - -26.5 (-26.7)%

The dollar rose to a one-week high versus the euro as investors raised bets the Federal Reserve will increase the target lending rate by the end of the year as the world’s largest economy recovers.
The dollar fell in the past three months except the yen on speculation the Fed’s purchase of up to $300 billion in Treasuries to support the economy will undermine the greenback.
The pound dropped 0.1% as the BBC reported that the Labour Party ran third in EU elections with 15.3%, down 7% points from 2004. Labour lost to the Conservatives in Wales for the first time since 1918.
Sterling had its biggest weekly decline in three months last week as Brown rearranged his Cabinet amid a series of resignations and calls for him to quit. The currency advanced 14% in the past three months on signs the worst of the recession is over.
The euro fell against the dollar and yen after Standard & Poor’s downgraded Ireland’s sovereign credit rating for a second time this year.

EUR/USD fell from $1.3990 to $1.3800. Later rate recovered to $1.3920.

Resistance 3: Y100.70
Resistance 2: Y99.70
Resistance 1: Y98.80
Current price: Y98.24
Support 1: Y97.70
Support 2: Y96.50
Support 3: Y95.50
COMMENTS: Dollar retreats as on Friday the rate failed to break above the key resistance at Y98.80 (50% of Y110.65 - Y87.10 decline). Support comes at Y97.70 (50% of Friday’s rise), further – at Y96.50 (Friday’s lows). Further support is near Y95.50 (Jun 03 lows). Break above Y98.80 opens the way to Y99.70 (May 07 high). Above the key level is around Apr 10-12 highs on Y100.70.

Resistance 3: Chf1.1170
Resistance 2: Chf1.1030
Resistance 1:Chf1.0980
Current price: Chf 1.0900
Support 1: Chf1.0880
Support 2: Chf1.0800
Support 3: Chf1.0650
COMMENTS: Dollar weakens. Support is near session lows on Chf1.0880. Below the losses may widen to Chf1.0800 (May 22, 26 and 27 lows) and then – on Chf1.0650 (Friday’s low). Resistance is around Chf1.0980 (yesterday’s high). Above the rise may extend to Chf1.1030 (38,2% FIBO of Chf1.1740-Chf1.0590 decline) and then – to Chf1.1170 (50,0%).

Resistance 3:$1.6440
Resistance 2:$1.6280
Resistance 1: $1.6160
Current price: $1.6125
Support 1: $1.5940
Support 2: $1.5800
Support 3: $1.5510
COMMENTS: Sterling heads for $1.6160 resistance with a break above opens the way up to $1.6280 (23.6% of $1.5060 - $1.6670 rise). Next resistance is near $1.6440. Support comes at $1.5940, stronger – on $1.5800 (Monday’s lows), then – at $1.5750 (May 22 low).

Resistance 3:$1.4160
Resistance 2:$1.4050
Resistance 1:$1.3940
Current price: $1.3852
Support 1:$1.3800
Support 2: $1.3740
Support 3: $1.3630
COMMENTS: Euro still under pressure. Support comes at $1.3800 (yesterday’s lows). Below correction may widen to $1.3740 (50% FIBO of $1.3420-$1.4050 rise) and then – to $1.3640. Resistance is around $1.3940 (yesterday’s high). Break above will open the way to $1.4050 (May 22 high). Above the rise may extend to $1.4160 (50% FIBO of $1.6030-$1.2330 decline).

The Obama administration wants Europeans to put their banks through more rigorous public stress tests to help ensure that the institutions survive if the economy slips from bad to worse, the WSJ reports Tuesday. Treasury Secretary Timothy Geithner will likely discuss the issue in Italy later this week during closed-door meetings with finance ministers from the Group of Eight leading nations, the paper says.

High Low Close
EUR/USD 1.3998 1.3803 1.3898
GBP/USD 1.6099 1.5801 1.6047
USD/JPY 98.85 98.20 98.48
USD/CHF 1.0985 1.0834 1.0914

EUR/JPY 137.99 135.97 136.88
EUR/GBP 0.8792 0.8648 0.8660
GBP/JPY 158.45 155.52 158.06
GBP/CHF 1.7534 1.7256 1.7515

Change % Change Last
Nikkei +97.62 (+1.00%) 9865.63
Topix +10.33 (+1.11%) 926.89
FTSE -33.34 (-0.75%) 4405.22
DAX -72.31 (-1.42%) 5004.72
CAC -49.39 (-1.48%) 3289.66
Dow +1.36 (+0.02%) 8764.49
NASDAQ -7.02 (-0.38%) 1842.40
S&P -0.95 (-0.10%) 939.14
NYMEX Crude Oil -17/32 3.9% 93 20/32

05:00 Japan Leading indicators composite index (April) preliminary 77.3% 76.3
05:00 Japan Coincident indicators composite index (April) preliminary - 85.1
06:00 Germany Trade balance (April) unadjusted, bln 9.3 11.3
06:00 Germany Current account (April) unadjusted, bln 10.0 10.2
10:00 Germany Industrial production (April) adjusted 0.3% 0.0%
10:00 Germany Industrial production (April) adjusted Y/Y -20.5% -20.4%
10:00 Germany Industrial production (April) unadjusted Y/Y - -
12:55 USA Redbook (06.06)
14:00 USA Wholesale inventories (April) -1.0% -1.6%
23:50 Japan Machinery orders core (April) adjusted -0.7% -1.3%
23:50 Japan Machinery orders core (April) unadjusted Y/Y -29.5% -22.2%
23:50 Japan Corporate goods price index (CGPI) (May) domestic -0.3% -0.4%
23:50 Japan Corporate goods price index (CGPI) (May) domestic Y/Y -5.1% -3.8%