"Inflation, not slow growth, is the primary threat to the US economy. The CPI is up 4.2% versus a year ago and up at a 4.9% annual rate in the past three months. Some analysts continue to minimize the threat of higher inflation by focusing on the core CPI, which excludes food and energy prices and is up only 2.3% versus a year ago. Focusing on the core makes sense when energy and food prices are volatile both up and down. In that case, core inflation helps reveal the underlying trend. But in the past six years almost all the volatility has been to the upside. In this situation, focusing on the core hides the underlying trend."

"Consumer sentiment is at a 28-year low, and inflation expectations are elevated, but no worse than last month. In the horse race between slower demand and rising inflation expectations, this report points to slower growth as the more pressing concern."

Pushed to fresh highs for the session atop $1.9500 area just ahead of the London close as earlier reported supply ahead of the figure was handily absorbed and as overnight highs were easily overcome amid thinning conditions. Further supply

Pressing to fresh highs for the US session as short-squeeze continues ahead of the G8 meeting, traders not expecting too much from that event but preferring to keep risk parameters to a minimum "just in case." Euro overcomes any residual supply around $1.5350, trading to $1.5365 area but supply remains above, at $1.5380.

The stock market is currently up 0.7% this session, but down 0.8% week-to-date. For the year, the stock market has declined roughly 8.1%.
Microsoft (MSFT 28.96, +0.72) remains the session's most influential leader, though it is trading off its session high. Fellow tech heavyweight Google (GOOG 571.88, +18.93) is also providing considerable support.

The dollar headed for its biggest weekly gain versus the euro in three years as traders bet the Federal Reserve will increase borrowing costs this year and Irish voters may have rejected a European Union treaty.
The U.S. currency rose to a one-month high against the euro on bets Group of Eight finance ministers meeting this weekend will signal they favor a stronger dollar. The yen was poised for a fifth weekly drop against the euro after the Bank of Japan left its target lending rate at 0.5 percent, the lowest among industrialized nations.
``People will likely keep pricing in Fed rate hikes,'' said David Powell, a currency strategist at Bank of America Corp. in New York. ``That will help the dollar.''
Fed funds futures on the Chicago Board of Trade show a 60 percent chance the central bank will increase the 2 percent target lending rate by at least a quarter-percentage point at its August meeting, compared with 9 percent odds a week ago.
The 15-nation euro weakened as Irish opponents of a new European Union treaty led as counting got under way in a referendum that may decide whether the 27-nation bloc moves toward political unity.
``The rejection of the treaty undermines the EU's public legitimacy and may influence public sentiment in countries contemplating joining the euro zone,'' wrote Geoffrey Yu, a currency analyst at UBS AG, in a note to clients today. ``This change may undermine the ECB's price stability mandate in favor of a growth mandate.''
Consumer prices rose 0.6 percent in May after a 0.2 percent increase the prior month, the Labor Department reported today in Washington. The median forecast of 84 economists was for a 0.5 percent advance.

Stocks are largely unchanged from earlier levels. Only the consumer staples sector (-0.1%) is trading with a loss. Materials (+2.5%) are currently leading the other economic sectors.
Leading movers in the materials sector include Freeport McMoRan (FCX 122.61, +5.14), Monsanto (MON 137.82, +2.89), and Dow component Alcoa (AA 39.28, +1.54).
The CRB Commodity Index is trading at 445.3, unchanged for the session.

--Risk of new rise in German inflation due to pay hikes
--ECB in state of heightened alertness, made clear it is ready to act
--Anchoring of inflation expectations must not be put at risk
--EMU inflation to fall slowly below 3% in 2009
--Eurozone growth still solid, but downside risks prevail
--EMU economic cycle to bottom out in 2008
--Germany economy to cool off considerably in spring and summer, cannot
rule out negative GDP growth in 2Q

Investors shrug off jump in CPI and instead focus on deal making talk at the end of a tough week on Wall Street.
The Dow Jones industrial average, the broader Standard & Poor's 500 index and the Nasdaq composite all gained in the early going.
Consumer inflation up. The Consumer Price Index (CPI) rose 0.6% in May after rising 0.2% in April, reflecting the spike in oil and gas prices and bringing the annual rate to 4.2%. Economists thought it would rise 0.5%.
So-called "core" CPI, which strips out volatile food and energy prices, rose 0.2% in the month, as expected, after rising 0.1% in April.
Yahoo-Google. Yahoo remained in focus Friday on news that it has partnered with Google on an online advertising deal.
Oil prices retreat: U.S. light crude oil for July delivery fell $1.13 to $135.61 a barrel on the New York Mercantile Exchange.

"Consumer sentiment continued to deteriorate in June amid soaring gasoline prices, rising unemployment and falling home prices. Sentiment fell to 56.7 in June from 59.8 in May, the lowest since the 1980 recession. A record number of respondents reported that their finances had worsened in June, citing rising energy and food prices as the main culprits. In addition to rising commodity prices, consumers are struggling with a weaker labor market as only 19% reported income gains (a record low)." This suggests downside risks to consumption, LEH says.

Stocks have extended their advance as all three of the major indices are now sporting gains in excess of 1.0%. The Nasdaq continues to boast the largest percentage gain, up 2.0%, helped by the likes of Microsoft (MSFT 29.36, +1.12) and Intel (INTC 22.69, +0.64).
All ten of the major economic sectors are trading in the green, seven of which are up at least 1.0%.
Treasurys have regained some buying interest. The 10-year note is up 7 ticks and is now yielding 3.18%.

Ian Shepherdson, Chief U.S. Economist at HFE, says “June Michigan sentiment index dropped to 56.7 from 59.8, below the consensus and the lowest reading in 28 years. So the tax rebates made some people spend but haven't made most people happier. Both expectations and current conditions fell, both also at 28-year lows.”

1.A rate hike would show we are determined to fight inflation
2.Current 4% interest rate not harming eurozone economy
3. Euro area not in danger of recession, unlike U.S. and U.K.

EUR/USD pops up to $1.5330 from around $1.5320/25 as Michigan Sentiment comes in below median forecasts of 60.0.

EUR/USD: $1.5400, $1.5700
USD/JPY: Y105.00
AUS/USD: $0.9450, $0.9400 Tokyo cut
USD/CAD: C$1.0180

Stock futures rose early Friday.
Before the bell, the government's Consumer Price Index rose 4.2% through the 12 months ended in May, according to the Labor Department. This compared to an increase of 3.9% during the 12 months ended in April. For the month of May, overall CPI rose 0.6%, compared to an increase of 0.2% in April. A consensus of analysts had projected an increase of 0.5% for May. The core CPI, which excludes the cost of food and energy, rose 0.2% in May, compared to an increase of 0.1% in April.
Companies to watch: Yahoo announced late Thursday an online ad partnership with Google. Yahoo said it believes the ad deal would be better than selling its search business to Microsoft.
Shares of Wall Street investment house Lehman Brothers slipped Thursday after the brokerage announced a management shakeup in the wake of a $2.8 billion loss disclosed earlier in the week.
Oil prices retreated. U.S. crude for July delivery fell $1.16 to $135.59 a barrel.

1.In a state of heightened alert on inflation
2.Markets should be clear about July rates
3.Irish "no" vote to EU Treaty will not affect ECB monetary policy
4.Inflation expectations on the rise

Ashraf Laidi, chief currency analyst at CMC Markets: “Euro remains pressured near the lows after the US retail sales figures and their upward revisions are boosting the dollar across the board. Although the increased probability of an autumn Fed hike according to Fed funds futures is expected to bolster the greenback, we warn traders that positive US data have not always led to sharp losses in EUR. This time may be different, however, as these figures bolster the case made by the Fed that chances of a substantial decline in US growth have dissipated.”

CPI report came in better-than-expected. EUR/USD still under pressure at $1.5320, GBP/USD on $1.9419, USD/JPY on Y108.25.

The following data were issued
06:00GermanyCPI (May) final 0.6% 0.6% 0.6%
06:00GermanyCPI (May) final Y/Y 3.0% 3.0% 3.0%
06:00GermanyHICP (May) final Y/Y 3.1% 3.0% 3.0%
08:00ItalyCPI (May) final0.5% 0.5% 0.5%
08:00ItalyCPI (May) final Y/Y 3.6% 3.6% 3.6%
08:00ItalyHICP (May) final Y/Y 3.7% 3.7% 3.7%
09:00EU(15)Labour cost index (Q1) Y/Y 3.3% - 2.9%

The dollar headed for its biggest weekly gain in more than three years against the euro on speculation officials from the Group of Eight nations meeting on the weekend will signal they favor a stronger U.S. currency.
The euro also fell on concern voters in Ireland will reject the European Union's new governing treaty designed to boost the strength of the 27-nation bloc.
The dollar was poised for the largest weekly advance versus the yen since 2004 before a government report that may show U.S. inflation accelerated, giving the Federal Reserve more reason to raise interest rates.
The yen still headed for its fifth weekly decline versus the euro, the longest losing streak since October, after the Bank of Japan concluded a two-day policy meeting in Tokyo by leaving its the key overnight rate at 0.5%.
The U.S. currency rebounded from a six-week low versus the euro on June 9 after Paulson said that he would ``never'' rule out currency intervention.
The dollar has fallen 13% against the euro in the past year as the Fed lowered its benchmark rate.

EUR/USD weakened from $1.5443 to session lows on $1.5310 before rebounding a bit to $1.5334. Bids on $1.5300, $1.5285/80, options at $1.5250.
GBP/USD opened at $1.9468. Rateheldwithintherange$1.9430/80. Bids at $1.9430, $1.9410. Offers on $1.9485/00, $1.9520/25.
USD/JPY rose from Y107.65 to Y108.40. Offers on Y108.40/50 with stо ps above.

At 12:30 GMT CPI report will be released with analysts predict consumer prices in the U.S. rose 0.5% last month after a 0.2% increase in April.

EUR/USD: $1.5400, $1.5700
USD/JPY: Y105.00
AUS/USD: $0.9450, $0.9400 Tokyo cut
USD/CAD: C$1.0180

"Initial claims, which are a good indicator of layoff activity, jumped in the most recent week and is now above its year-to-date average. The 4-week average appears to be settling in at around 370k, about 45k higher than its average in 2007. Continuing claims, which are inversely related to job creation, surged this week to its highest level in more than 4 years. More importantly, continuing claims have been on a rising trend for nearly 2 years, an indication that hiring has weakened." Also, "Imported goods prices surged again in May for the third consecutive month, in large part because energy prices continued to soar. However, non-fuel imported
goods prices are also accelerating and contributing significantly to higher imported inflation."

"We expect the rebate to boost spending over the next few months. But we expect it to be temporary, acting like a shot of caffeine by boosting growth in Q3 but pushing growth to negative territory in Q4 as the caffeine kick fades."

The euro remained under pressure ahead of the weekend meeting of G8 finance ministers in Japan. Market players keen to see whether the group will back the United States' efforts to strengthen the dollar. Recent talk from Treasury secretary Henry Paulson and Federal Reserve ratesetters has signalled the U.S. is determined for the greenback to appreciate to bring import price inflation under control.

Japanese finance minister Fukushiro Nukaga has hinted foreign exchange issues will be high on the weekend's agenda, although analysts are doubtful ministers would go as far as to sanction intervention in the currency markets.

"We believe that there could be stronger language on forex in the communique but it is likely to stop short of indicating that intervention is likely, which could still be enough to boost the dollar," said Mitul Kotecha, head of currency research at Calyon.

But ahead of the meeting focus is likely to be on U.S. inflation figures, both of which are expected to come in on the strong side.

The yen was lower following the Bank of Japan's decision to leave interest rates unchanged at 0.5%.

The pound was weaker, with investors still concerned about the prospect of stagflation in the UK and uncertainty about which direction the next move in interest rates will be.

USD/JPY challenges strong tech resistance at the 200-day moving average now under pressure (Y108.28). Stops noted through Y108.30, with offers then coming in up to Y108.50 and further stops above.

EUR/GBP drops below stg0.7900 to the lows around stg0.7870. Bids remain on stg0.7870/65. Below here and rate can ease on toward stg0.7855/50. Offers now seen placed at stg0.7900.

Resistance 3: Y110.00
Resistance 2: Y108.60
Resistance 1: Y108.30
Current price: Y108.16
Support 1: Y107.60
Support 2: Y106.50
Support 3: Y106.20
Comments: Dollar advances. The nearest resistance is Y108.30 (session high), strong level is also on Y108.60 (Feb highs). Higher level comes January 10 peak at Y110.00/10. The nearest support is Y107.60, then comes yesterday's low at Y106.50 with further sales possibly extending till Y106.20 and Y105.60.

Resistance 3: Chf1.0620
Resistance 2: Chf1.0580
Resistance 1: Chf1.0520
Current price: Chf1.0490
Support 1: Chf1.0440
Support 2: Chf1.0380
Support 3: Chf0.0300
Comments: Dollar goes upside. The nearest resistance lies on session high on Chf1.0520. Break above will open the way to Friday’s highs on Chf1.0580. Next band of resistance is near Chf1.0620 (May 08 high). Support is around hourly low at Chf1.0440, then – at session low on Chf1.0380. Under that level the losses may extend to Chf1.0300.

Resistance 3: $1.9750
Resistance 2: $1.9660
Resistance 1: $1.9520
Current price: $1.9466
Support 1: $1.9430
Support 2: $1.9400
Support 3: $1.9360
Comments: Cable tries to rebound. The nearest support is yesterday's low on $1.9430. Below losses may widen to $1.9400 and $1.9360 (May lows). Resistance comes near broken support at $1.9520. Stronger level comes at June 11 peaks on $1.9750, then – June 10 peaks on $1.9750.

Resistance 3:$1.5820
Resistance 2: $1.5600
Resistance 1: $1.5480
Current price: $1.5385
Support 1: $1.5360
Support 2: $1.5320
Support 3: $1.5280
Comments: Euro still under pressure, getting close to $1.5360 (Jun 05 low). Break above will open the way to $1.5320 and then – to $1.5280. Resistance comes around session highs on $1.5480, then – at Thursday’s high on $1.5590/00. Stronger level comes at $1.5820.

EUR/USD: $1.5400, $1.5700
USD/JPY: Y105.00
AUS/USD: $0.9450, $0.9400 Tokyo cut
USD/CAD: C$1.0180

European equity bourses are lower Friday, with CAC-40 and FTSE-100 leading the move. GlaxoSmithKline and BP are main decliners on FTSE-100, whilst EDF and Suez are leading CAC-40 lower. Airlines are lower following rise in crude oil prices, with easyJet lower after suffering downgrade to "sell" from "buy" from Goldman Sachs, along with cut in price target to 223 from 420. However banking stocks are higher with HBOS up on plans to raise Stg4bln through a rights issue. Alliance & Leicester is up ahead of its pending regulation to FTSE-250. In addition, talk that UBS has received a 99% take up for shares in its $15.3bn rights issue has also helped lift sentiment in banking stocks. CAC-40 is down 43pts (-0.92%), Xetra-DAX is down 45pts (-0.67%) and FTSE-100 is down 48pts (-0.84%).

The dollar strengthened to a one- week high against the euro Thursday as U.S. retail sales advanced in May more than economists forecast, raising speculation the Federal Reserve will increase borrowing costs this year. U.S. retail sales increased 1 percent in May as Americans used their tax rebates to shop, the Commerce Department reported. That followed a revised 0.4 percent advance the prior month. The median forecast of 82 surveyed economists was for a 0.5 percent increase.
Traders bet Fed policy makers are more likely to raise borrowing costs in August. Fed funds futures on the Chicago Board of Trade show a 60 percent probability the central bank will increase the target lending rate by at least a quarter- percentage point, compared with a 7 percent chance a week ago.
The U.S. currency was supported by speculation that finance ministers from the Group of Eight countries might make comments discouraging the currency's decline at two days of meetings in Osaka, Japan, this weekend. G-8 officials will urge emerging nations to stop subsidizing oil consumption and press regulators, notably in the U.S., to look into the trading that has driven crude oil to a record, said French Finance Minister Christine Lagarde.

EUR/USD fell from $1.5560 to $1.5380. Later rebound followed till $1.5450.
GBP/USD sunk from $1.9635 to $1.9435 rebounding further to $1.9470.
USD/JPY rose from Y106.80 to Y108.06.

Eurozone data at 0900GMT sees Q1 employment data and Q1 labor costs,which are seen rising 2.9%. US data starts at 1230GMT, when CPI is expected to rise 0.5% in May, as energy prices are expected rebound after the seasonally adjusted decline in the previous month. Food prices are forecast to be more modest in the month after posting the largest monthly gain in 18 years. Core CPI is forecast to rise 0.2% in the month after the very tame 0.1% reading in April. US data concludes at 1355GMT when the Reuters/University of Michigan Consumer Sentiment Index is expected to rise very modestly to 60.0 in early-June.

closing
Nikkei -294.88 -2.1% 13,888.60
Topix -26.89 -1.9% 1,363.14
FTSE +67.20 +1.17% 5,790.50
DAX +64.26 +0.97% 6,714.52
CAC +11.39 +0.24% 4,672.30
Dow -205.99 -1.68% 12,083.77
NASDAQ -54.93 -2.24% 2,394.01
S&P -22.95 -1.69% 1,335.49
10yr Note -0.2600 -0.063% 4.073%
NYMEX Crude Oil +5.07 +3.86% 136.38
Gold +11.70 +1.34% 882.90

Japan stock indexes fell the most in three months, led by financial companies and commodity producers, on concern surging inflation and credit turmoil will derail growth.
Mitsui O.S.K. fell 4.8%. Nippon Yusen K.K., Japan's largest shipping line, lost 4.6%.
JFE Holdings Inc shares fell 6,7% after PBOC increased interest rate spurring expectations demand from China may lower.
Japan Tobacco Inc, fell 5,3% on talks of higher taxes for tobacco industry.
Kyocera Corp rose 2.9% after JPMorgan Chase and Co. upgraded shares to «overweight».

European stocks rose for the first time in seven days after InBev NV offered a record $46.3 billion in cash for Anheuser-Busch Cos. and banks rebounded from their cheapest in two months. InBev rallied the most in three months after saying it has ``strong support'' from lenders to finance the bid. Premiere AG, Germany's biggest pay-television company, and Banco Popular Espanol SA climbed on speculation they were takeover targets. Commerzbank AG rebounded from its lowest close since March, while HBOS Plc rallied after its steepest one-day drop in three months. Vedanta Resources Plc led a recovery in mining companies after Goldman Sachs Group Inc. recommended the stock.
Vedanta advanced the most in three weeks after Goldman upgraded the shares to ``buy'' from ``neutral,'' saying the recent decline in the share price provides ``an opportunity for investors.'' Royal Bank of Scotland Plc, the second biggest U.K. bank, led the industry higher as a measure for European banks showed the stocks closed yesterday at their cheapest since April.
BASF AG, the world's largest chemical company, climbed after Societe Generale SA lifted its recommendation on the shares. Siemens AG rose the most in almost a month after Chief Executive Officer Peter Loescher said the company is ``on a good way'' to reach its earnings targets. Commerzbank surged 1.19%. Allianz added 1.5%. Germany's second-largest bank and Dresdner Bank are inspecting each others' books in preparation for possible merger talks, Handelsblatt said, citing unidentified people from the industry. Siemens, Europe's largest engineering company, climbed 2.5%, the biggest increase since April 30.Infineon Technologies AG, Europe's second-largest maker of semiconductors, jumped 5.5%. Elpida Memory Inc. would consider taking a stake or a complete acquisition of Infineon's memory-chip unit Qimonda AG, Frankfurter Allgemeine Zeitung reported.

US stock indexes climbed as retail sales increased more than forecast and banks rose from a five-year low, outweighing speculation the Federal Reserve will boost interest rates as bond yields climbed the most since April. The government reported increases to retail sales as well as weekly jobless claims. Retail sales increased 1% in May, compared to an expected increase of 0.5% from analyst expectations. Retail sales, excluding automobiles and gas, rose 1.2% in May, compared to expectations of a 0.7% increase.
Wal-Mart Stores Inc. advanced after tax rebate checks pushed retail sales in May to twice the rate economists estimated. Goldman Sachs Group Inc., JPMorgan Chase & Co. and Citigroup Inc. gained after Morgan Stanley advised investors to buy financial companies.
Corporate news: Battered mortgage lender Thornburg Mortgage (TMA) swung to a first-quarter loss of $3.31 billion. The company blamed the loss on delinquent loans.
Citigroup said it plans to close down its hedge fund Old Lane Partners. Citi paid more than $800 million last year for the fund that was co-founded by CEO Vikram Pandit.
Starbucks said it entered a deal with European beverage vender SSP to open more than 150 Starbucks stores in Europe

The troubled financial firm Lehman Brothers said it was replacing two top executives, including its chief financial officer, just days after announcing a massive $2.8 billion quarterly loss. Lehman stock fell about 5%.

The dollar headed for its biggest weekly gain in almost three years against the euro on speculation officials from the Group of Eight nations will signal they favor a stronger U.S. currency.
The currency was also poised for the biggest weekly advance since 2004 versus the yen before a government report that will probably show U.S. inflation accelerated, boosting the case for the Federal Reserve to raise interest rates. The dollar's gains are ``very satisfying,'' French Finance Minister Christine Lagarde told reporters in Osaka, before meeting her counterparts today and tomorrow. Treasury Secretary Henry Paulson this week signaled the U.S. may buy its own currency.
The yen headed for its fifth weekly decline versus the euro, the longest losing streak since October, after the Bank of Japan concluded a two-day policy meeting in Tokyo at which it left the key overnight lending rate at 0.5 percent. The Australian dollar headed for its biggest weekly loss in almost three months and the New Zealand currency was poised for a third weekly decline as traders added to bets the Fed will raise rates.

EUR/USD retreated from $1.5460 to $1.5420.
GBP/USD was bounded in $1.9450/80.
USD/JPY traded within Y107.60/00.

Eurozone data at 0900GMT sees Q1 employment data and Q1 labor costs,which are seen rising 2.9%. US data starts at 1230GMT, when CPI is expected to rise 0.5% in May, as energy prices are expected rebound after the seasonally adjusted decline in the previous month. Food prices are forecast to be more modest in the month after posting the largest monthly gain in 18 years. Core CPI is forecast to rise 0.2% in the month after the very tame 0.1% reading in April. US data concludes at 1355GMT when the Reuters/University of Michigan Consumer Sentiment Index is expected to rise very modestly to 60.0 in early-June.

Japan's benchmark stock indices ended the day higher, helped by an afternoon rally. The benchmark nikkei 225 gained 85.13 points, or 0.61%, to stand at 3973.73. The broader-based TOPIX gained 8.43 points to stand at 1371.57.

Resistance 3: Y110.00Resistance 2: Y108.60
Resistance 1: Y108.30
Current price: Y108.01
Support 1: Y107.60

Support 2: Y106.50

Support 3: Y106.20

Resistance 3: Chf1.0620
Resistance 2: Chf1.0580
Resistance 1: Chf1.0490

Current price: Chf1.0451

Support 1: Chf1.0380
Support 2: Chf1.0300

Support 3: Chf0.0150

- Currencies should reflect economic fundamentals
- Downside risk for US economy still high
- Should not single out impact on forex when guiding monetary policy
- Desirable for economy to be strong, forex moves to reflect that
- Forex moves in a way to adjust economic imbalances
- Watching public inflation expectations closely
- See higher downside risk for domestic economy, upside risks to prices compared with April.

Resistance 3: $1.9750

Resistance 2: $1.9660
Resistance 1: $1.9520
Current price: $1.9440
Support 1: $1.9430
Support 2: $1.9400Support 3: $1.9360Comments: Cable failed to rebound. The nearest support is yesterday's low on $1.9430. Below losses may widen to $1.9400 and $1.9360(May lows). Resistance comes near broken support at $1.9520. Stronger level comes at June 11 peaks on $1.9750, then – June 10 peaks on $1.9750.

Resistance 3:$1.5820
Resistance 2: $1.5640
Resistance 1: $1.5590
Current price: $1.5424

Support 1: $1.5390
Support 2: $1.5360
Support 3: $1.5280

Comments: Euro trades under pressure. Support comes at yesterday's low on $1.5390 with further level comes at $1.5360 (Jun 05 low) and $1.5280. Above $1.5590 the resistance is around $1.5640. Stronger level comes near $1.5820.

- Japan economy to grow at slower pace for now, followed by moderate growth path.
- Downgrades view on exports, corporate profits.
- Exports continue to rise but at a slower pace.
- Corporate profits falling on worsening terms of trade.
- Recovery in housing investment seen coming to an end.
- Private sector credit demand rising moderately.

The Cabinet Office has decided to downgrade its assessment of the economy in its June report (due out Monday) for the first time in three months, noting that exports are showing signs of deterioration and corporate earnings are being squeezed by higher crude oil and materials costs, the Nikkei reported. The government said in its March report that "the economic recovery appears to be pausing." While retaining the words "recovery" and "pausing," the June report will indicate that the economic recovery is further decelerating, mainly in the corporate sector.

High Low Close
EUR/USD 1.5564, 1.5378, 1.5448
USD/JPY 108.05, 106.78, 107.87
GBP/USD 1.9642, 1.9432, 1.9454
USD/CHF 1.0487, 1.0301, 1.0404

EUR/JPY 166.74, 165.64, 166.67
EUR/GBP 0.7945, 0.7882, 0.7938
GBP/JPY 210.26, 209.51, 209.87
GBP/CHF 2.0394, 2.0220, 2.0242

Change % Change Last
Nikkei -294.88 -2.1% 13,888.60
Topix -26.89 -1.9% 1,363.14
FTSE +67.20 +1.17% 5,790.50
DAX +64.26 +0.97% 6,714.52
CAC +11.39 +0.24% 4,672.30
Dow -205.99 -1.68% 12,083.77
NASDAQ -54.93 -2.24% 2,394.01
S&P -22.95 -1.69% 1,335.49
10yr Note -0.2600 -0.063% 4.073%
NYMEX Crude Oil +5.07 +3.86% 136.38
Gold +11.70 +1.34% 882.90

06:00 Japan BoJ monthly economic report (June)
06:00 Germany CPI (May) final 0.6% 0.6%
06:00 Germany CPI (May) final Y/Y 3.0% 3.0%
06:00 Germany HICP (May) final Y/Y 3.0% 3.0%
12:30 US CPI (May) 0.4% 0.2%
12:30 US CPI (May) Y/Y 3.9%
12:30 US CPI excluding food and energy (May) Y/Y 2.3%
12:30 US CPI excluding food and energy (May) 0.2% 0.1%
14:00 US Michigan sentiment index (June) preliminary 59.8