Amazon.com Inc
The online retailer settled a breach-of-contract lawsuit with Toys R Us, agreeing to a one-time payment of $51M. Toys R Us had accused Amazon of breaking a deal by selling over its Web site certain toys to which Toys R Us claimed to have exclusive rights.

Boeing Co
CEO Scott Carson said the company's commercial aircraft unit continues to run at the right production rate following announced cuts to its 777 program and ramp-up delays for its 767 and 747-8 jets. Carson said the 787will be up in the air before the end of June, and the first customers for the jet are well financed by groups other than Boeing.

Pepco Holdings Inc
The energy company has named Anthony Kamerick senior vice president and chief financial officer. He succeeds Paul Barry, who resigned.

Rio Tinto PLC
Chinese authorities could use a new antitrust law to block Rio Tinto's planned iron-ore joint venture with BHP Billiton.

Dallas Fed's Fisher says Fed will do what's right re balance sheet, is a matter of judgement on timing of Fed withdrawal. Fed purchase program has had its impact, hard to counter large supply coming from Treasury. Repeats Fed will not monetize deficit. Says Fed will have expanded powers in Obama plan.

The dollar rose to a three-week high against the euro as Russia’s Finance Minister Alexei Kudrin said his nation has full confidence in the U.S. currency.
The greenback advanced versus all of its 16 major counterparts except the yen after Kudrin said in an interview following the Group of Eight meetings that it was too early to speak of an alternative to the world’s main reserve currency. The euro fell versus the dollar after the European Central Bank said commercial banks in the 16-nation euro region may lose a further $283 billion by the end of next year.
“The dollar is still the global reserve currency and most likely to remain the reserve currency for the foreseeable future,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co. in New York. “Certainly there’s no basis for seeing a major shift away from the dollar by global central banks.”
“Today is a typical risk-aversion move,” said Ron Leven, an executive director at Morgan Stanley in New York. “The market has to re-price for less growth going forward.”
The Federal Reserve Bank of New York’s general economic index dropped in June to negative 9.41 from minus 4.55 in the prior month, the bank said today. Readings below zero for the Empire State index signal factory activity is shrinking.
The Dollar Index gained for a second day after Russia’s Kudrin said the fundamentals of the U.S. currency are still in “good shape.” He spoke two days ago following a meeting in Italy of finance ministers from the G-8 nations.
The Dollar Index, which the ICE uses to track the currency against the euro, yen, pound, Swiss franc, Canadian dollar and Swedish krona, gained 0.7 percent to 80.738 today.
International investors bought $11.2 billion more in long- term U.S. equities, notes and bonds than they sold in April, compared with net purchases of $55.4 billion in the previous month, the Treasury Department reported today. Economists predicted investors would buy a net $60 billion of long-term securities.
The euro fell versus the dollar after the ECB said in its June Financial Stability Report that losses at commercial banks in the euro zone may almost double from about $365 billion already reported.

Moody's Investors Service today placed the long-term debt and deposit ratings of UBS AG and affiliates (deposits and senior debt at Aa2, subordinated at Aa3, trust preferred and capital securities at A1) on review for possible downgrade.

"The meeting carries political considerations as this is the first official attempt by
emerging countries to leverage their geopolitical views," remind strategists at HSBC. Comments on expected topics of discussions (the status of the dollar/the need or not to diversify allocations in reserve accumulation/bilateral trade settlement) may roil financial markets, they say. As evidence, the strategists point to the dollar gains seen Monday (vs both majors and EM currencies) in response to weekend comments by Russian Fin Min Kudrin, expressing full confidence in the dollar. "However, as the flurry of recent headlines on the dollar shows,
opinions on the relevance of the USD vary significantly in the BRIC group, and that is likely to lead to conflicting headlines in the coming days," HSBC says.

The major indices have been trading sideways in a rather narrow range for the last hour.
However, the decline among financial stocks has been rather steady for the entire session. Financials are now a bit off of their low, trading with a 2.4% loss.
The energy sector has also been moving steadily lower throughout the session; the sector is at its worst level of the day, down 3.0%. Crude oil prices are also down 3.0% and were last trading at $69.85 per barrel.
Health care stocks are off by 2.3% as health care suppliers stocks (-2.8%) and health care equipment stocks (-2.9%) come under pressure amid reports that President Obama is looking to cut $313 billion in new health costs.

Falling crude prices have allowed the oil and energy sector to lose ground during the day, with Total SA (FP), and BP (BP.) now leading losses. Weakness in the metals markets has also been putting pressure on mining stocks during the session, particularly in London, where Rio Tinto (RIO) and Xstrata (XTA) are hitting the blue-chip index hardest. The auto-sector is underperforming in Frankfurt, extending losses throughout the day, with Daimler (DAI) down around -5.6%, and BMW (BMW) down -4.1%. The FTSE-100 is currently down 107pts (-2.4%), CAC-40 down 85pts (-2.6%), and Xetra-DAX down 150pts (-3.0%).

The pare has broken below the neckline of head-&-shoulders pattern from May 28 at $1.3816 -- targets measured move towards $1.3280. The bear-divergence on daily studies is becoming more dominant and implies further weakness. Support is at $1.3784 Fibonacci level -- 38.2% of the April to June rally. Break favours $1.3728/36/39 area.

The commodity has been showing a high correlation with the dollar during the day, under pressure as the Trade Weighted Dollar Index consolidates gains above the 80 level. Weakness in the equity market and some renewed risk aversion has been helping to push prices further, and the light sweet front contract is currently off $1.44 at $70.76.

Weakness is considerable in the early going. Approximately 96% of the stocks listed in the S&P 500 are trading with losses.
Amid the broad-based downturn shares of Huntington Bancshares (HBAN 4.74, +0.59) are surging and seeing a spike in trading volume, however. The company hasn't been the topic of any grand headline, but its shares were mentioned positively last week by former hedge fund manager Jim Cramer. Shares of other regional banks are down 0.7%.
Early movers: Trading up -- JAZZ +36%, CAV +20.6%, BDSI +12.4%, MAPP +12%, KV.A +12%; Trading down -- DEP -10.2%, HOKU -9.8%, FEED -9.6%, ICO -9.6%, FSYS -9.4%, SOLR -9.4%, ABMD -9.3%, ABAT -9.2%, HMA -9.1%

The pare has rebounded to $1.3855 area now after earlier push lower found a base just below $1.3830, traders mindful of a series of lows set last week just ahead of $1.3800 area that are now providing technical support for euro-dollar. Flows described as scrappy, liquidity an occasional concern, and talk suggesting that tone will continue shouldeuro test lower. Talk has cited stops sub $1.3820, bids into $1.3800 with stops below, followed by further demand interest at $1.3780/70 area, likely to make for very uneven trading if tested.

Stocks are trading markedly lower in the first few minutes of action. The downturn has been broad-based with all 10 major sectors in the S&P 500 showing losses; tech (-0.7%) and telecom (-0.6%) make up the only two sectors that aren't down by at least 1%.
Weakness is most intense among materials stocks. The sector is currently down 2.5% as steel stocks (-3.2%) and diversified metals stocks (-3.3%) go on the defensive.

EUR/USD $1.3900, $1.3700, $1.4100
USD/JPY Y98.00, Y98.75, Y98.90
GBP/USD $1.6395, $1.6600
AUD/USD $0.8300, $0.7820, $0.7800, $0.7750
USD/CAD C$1.1000

shipments plunge and new orders remain negative (at -8.15). Prices paid -5.75 vs -11.36 in May.

Stretched lows to Y135.95, but show under reported support at Y136.00 quickly corrected with rate currently trading around Y136.15. If rate can clear below Y136.00 seen opening a deeper move toward Y135.70. Break below wil target Y135.30/20.

Data released
07:15 Switzerland Producer and Import Prices (YoY) (May) -5,0% -3.6%
07:15 Switzerland Switzerland Producer and Import Prices (MoM) (May) -0,3% -0.2% -0.1%
09:00 European Monetary Union Employment Change (YoY) (1Q) -1.2% -0.1%
09:00 European Monetary Union Employment Change (QoQ) (1Q) -0.8% -0.4%

The dollar rose the most in a week against the euro after Russia’s Finance Minister Alexei Kudrin said the nation has full confidence in the U.S. currency.
The greenback advanced as Kudrin said in an interview after meeting officials from the Group of Eight nations two days ago that it was too early to speak of an alternative to the world’s main reserve currency.
The euro fell after the Telegraph cited Hans Heinrich Driftmann, president of the German Chamber of Commerce and Industry, as saying funding conditions for German businesses are tougher now than they were at the peak of the global crunch months ago.

EUR/USD opened around $1.3948. Rate squeezed down to challenge reported demand between $1.3855/50, later – to key tech support between $1.3816/10, a break to open a deeper move toward $1.3250/00.

EUR/GBP recovers off European morning lows around stg0.8462 found resistance around stg0.8495 (50% stg0.8531/0.8462), with rate currently trading around stg0.8471. Bids said to remain in place to stg0.8460 with stronger interest close behind at stg0.8455/50. Above stg0.8495/00 to open a move on toward stg0.8515/20 ahead of stg0.8530/35.

Nymex light sweet crude holding near session lows in Europe, with trading range limited by $70.71 - $72.35. A stronger dollar is pushing moves to the downside in Europe, with the WTI Nymex crude is currently off 79 cents at $71.25.

EUR/USD: $1.3900, $1.3700, $1.4100
USD/JPY: Y98.00, Y98.75, Y98.90
GBP/USD: $1.6395, $1.6600
AUS/USD: $0.8300, $0.7820, $0.7800, $0.7750
USD/CAD: C$1.1000

The dollar started the week on a firm footing, helped by a flight from risk as equity markets tumbled, and supported by comments from the weekend’s G8 meeting.
Those fears were heightened last week as Russia, Brazil and China announced plans to invest in bonds issued by the International Monetary Fund and denominated in special drawing rights (SDR). This weighed on the dollar since the SDR is a basket of currencies containing about 45%.
However, Alexei Kudrin, Russian finance minister, allayed fears over diversification away from the dollar at the G8 summit. Mr Kudrin said there was “no alternative” to the US dollar as a reserve currency and that Russia has confidence in the currency which was in “good shape”.
Also helping to support the dollar was increased concerns over the European banking sector. European officials said they were agreed in principle to conducting stress tests, but Christine Lagarde, French finance minister, noted that discussions were ongoing within the European Union as to whether to do it on a consolidated basis or at individual country level.
The euro also dropped as data showed eurozone employment plunged by a record 0.8% on a quarterly basis in the first three months of 2009. This was twice as fast as the 0.4% drop seen in the fourth quarter of 2008.

Resistance 3: Y99.60
Resistance 2: Y99.00
Resistance 1: Y98.50
Current price: Y98.15
Support 1: Y97.10
Support 2: Y96.60
Support 3: Y95.30
COMMENTS: Techs on rate hasn’t changed. The nearest support comes around Y97.10 (Jun 10 low), ahead of Y96.60 (area of June 5 low and 2 high) and Y95.30. Break above Y98.50 (Jun 11 high) opens the way to Y98.90/00 (high of June). Above the important level comes around May highs between Y99.60/80.

Resistance 3: Chf1.1150
Resistance 2:Chf1.1050
Resistance 1:Chf1.0950
Current price: Chf 1.0891
Support 1:Chf1.0740
Support 2:Chf1.0650
Support 3: Chf1.0600
СOMMENTS: Dollar looks optimistic with strong resistance comes at channel line from Apr on Chf1.0950. Above the target is on Chf1.1050 (May 21 high) and Chf1.1150 (50% of Chf1.1720 - Chf1.0590 move). Support is near Chf1.0740, stronger – on Chf1.0650 (Jun 11 low). Then the rate may decline to Chf1.0590/00 (Jun 02 low).

Resistance 3:$1.6660
Resistance 2:$1.6490
Resistance 1: $1.6430
Current price: $1.6338
Support 1: $1.6300
Support 2: $1.6240
Support 3: $1.6100
COMMENTS: Sterling still under pressure, holding a bit above session low on $1.6300 (minor support). Below losses will widen to $1.6240 (Jun 10 low) and $1.6100 (Jun 08 low). Resistance comes at Jun 04 high on $1.6430 with a break above will target Jun 01 high on $1.6490/95 and further - Jun 03 high on $1.6660.

Resistance 3:$1.4160
Resistance 2:$1.4050
Resistance 1:$1.4000
Current price: $1.3856
Support 1:$1.3800
Support 2: $1.3740
Support 3: $1.3640
COMMENTS: Euro still under pressure. Support comes at $1.3800 ( June 08 lows). Below correction may widen to $1.3740 (50% FIBO of $1.3420-$1.4050 rise) and then – to $1.3640. Resistance is around $1.4000 (today'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).

1. Economic uncertainty remains very high
2. Real economic data weak still despite government measures
3. Consumer, investment spending shrunken dramatically.

GBP/USD tested area of resistance/offers between $1.6390/00, nut failed to break above and retreated. Above $1.6400 to open a move toward $1.6415/20 ahead of $1.6450.

Overnight losses, which saw AUS/USD push initially down to session lows of $0.8055 extended to $0.8000 in early Europe as a major NY bank executed a decent sized Aussie-yen sell order, the size suggested between A$100-150mln. Rate currently trades back around $0.8005. Bids remain in place at $0.8000, a break below to open a deeper move toward $0.7965. Resistance $0.8050/60 ahead of $0.8100.

WTI Nymex crude is sliding lower in Europe Monday, dropping through the $72/bbl level overnight, and seeing the $70.80 - $72.35 range. Traders are reporting the flurry of reports out last week are still getting digested by the market today, with OPEC's monthly report out on Friday slightly more optimistic than the IEA and DoE, forecasting total global demand for crude this year as 83.80m/bpd. A stronger dollar is putting further pressure on the commodity today, with the WTI Nymex light sweet front contract off $1.22 at $70.82.

Data:
07:15 Switzerland Switzerland Producer and Import Prices (MoM) (May) -0,3% -0.2% 0.1%
07:15 Switzerland Producer and Import Prices (YoY) (May) -5,0% -3.6%
The dollar rose the most in a week against the euro after Russia’s Finance Minister Alexei Kudrin said the nation has full confidence in the U.S. currency.
The greenback advanced against 15 of the 16 major currencies as Kudrin said in an interview on June 13 that it was too early to speak of an alternative to the world’s reserve currency. The euro extended losses against the dollar after Britain’s Telegraph newspaper cited Germany’s top industrial group as saying credit conditions in Europe’s largest economy are worsening. The yen strengthened as Asian stocks slid, boosting demand for the relative safety of Japan’s currency.
“Investors may put more funds into dollar-denominated securities,” said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. Kudrin’s comments are “supportive of the U.S. currency,” which may climb to $1.3943 per euro and 98.57 yen today, he said.
The Euro continues declining and, from Asian session high at 1.4000, the pair has dipped below 1.3900 reaching levels close to 1.3850/55 (Jun 9 lows), as news arise that Germany might be facing financial trouble. The Euro is suffering from rumors of worsening credit conditions in Germany. Der Spiegel has reported, during Asian trading hours, that the German Chambers of Industry and Commerce are about to release a report this week, showing that Euro Zone's leading economy's financing problems have worsened.



The Pound has opened at levels around 1.6440, but the pair could not hold above the 1.6400 level and the Pound lost more than 100 pips to test 1.6330, Jun 12 low at the time of writing. In case of breaking below 1.6330, next support level comes at 1.6295, and below there, 1.6240 (Jun 10 low) On the upside, initial resistance comes at 1.6390, and above here, intra-day high at 1.6455 and 1.6522.

EUR/USD: $1.3900, $1.3700, $1.4100
USD/JPY: Y98.75, Y98.90
GBP/USD: $1.6395, $1.6600
AUD/USD:$0.8300, $0.7820, $0.7800, $0.7750
USD/CAD: C$1.1000

Major European bourses are see trading flat to modestly higher Monday, although continuing weakness in Asia could weigh ahead of the open. UK spreadbetters Cantor Index are calling the FTSE and DAX unchanged, with the CAC up 7 and the Eurostoxx 50 up 4.

although ending above the key 10,000 level for the second successive session. The Nikkei 225 was lower by 96.15 points, or 0.95%, to stand at 10,03967. The broader-based TOPIX was 3.72 points lower at 946.82. Volume for the Nikkei constituents totalled a preliminary 1.403 bln shares, with 96 issues trading higher, 116 lower and 13 unchanged.

Resistance 3: Y99.60
Resistance 2: Y98.90
Resistance 1: Y98.50
Current price: Y98.45
Support 1: Y97.10
Support 2: Y96.60
Support 3: Y95.30
COMMENTS: The pair continues to become stronger. Break above Y98.50 (session high 11.06.09 ) to open the way to Y98.90 (high of June). Above the important level is the area of May top Y99.60/80. The nearest support comes around Y97.10 (low 10.06.09), ahead of Y96.60 (area of June 5 low and 2 high) and Y95.30.

Resistance 3: Chf1.1050
Resistance 2:Chf1.0985
Resistance 1:Chf1.0860
Current price: Chf 1.0847
Support 1:Chf1.0760
Support 2:Chf1.0700
Support 3: Chf1.0540
СOMMENTS:Resistance comes at Chf1.0860 (high 10.06.09). Above the target is Chf1.0985 (high 08.06.09) and further to Chf1.1050 (high 21.05.09). Strong support comes at Chf1.0760 (channel line from Mar 17). Below losses may extend to Chf1.0700 and Chf1.0540.

Japanese share prices opened Monday's session slightly down by 0.09% at 10,126.55.
At 00:09 GMT, the benchmark Nikkei 225 index was now down 38.46 points, or 0.38%, at 10,097.36.The Nikkei is off session lows, although still trading
down around 78 points at 10057.86.

Resistance 3:$1.6660
Resistance 2:$1.6490
Resistance 1: $1.6430
Current price: $1.6415
Support 1: $1.6350
Support 2: $1.6240
Support 3: $1.6100
COMMENTS: Sterling is in a narrow range. The nearest support is June 04 high on $1.6430 which capture will open road to peak on June 01 on $1.6490/95 and further - to June 03 high on $1.6660. The nearest support - on $1.6350 (earlier resistance, area of session low), further - $1.6240 (low 10.06.09). Below the area of 08.06.09 high on $1.6100 is located.

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: $1.3640
COMMENTS: Euro still under pressure. Support comes at $1.3800 ( lows 08.08.09). Below correction may widen to $1.3740 (50% FIBO of $1.3420-$1.4050 rise) and then – to $1.3640. Resistance is around $1.4000 (today'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).

Change % Change Last
Nikkei -81.50 -0.80% 10,054.32
FTSE -19.92 -0.45% 4,441.95
DAX -38.02 -0.74% 5,069.24
CAC -8.80 -0.26% 3,326.14
Dow +28.34 +0.32% 8,799.26
NASDAQ -3.57 -0.19% 1,858.80
S&P +1.32 +0.14% 946.21
10yr Note 94 16/32 +15/32 3.79%
NYMEX Crude Oil -0.64 -0.89% 72.04
Gold -21.30 -2.26% 940.70

High Low Close
EUR/USD 1.4128 1.3933 1.4004
GBP/USD 1.6598 1.6329 1.6442
USD/JPY 98.41 97.46 98.35
USD/CHF 1.0846 1.0685 1.0789

EUR/JPY 138.26 136.85 137.92
EUR/GBP 0.8540 0.8481 0.8522
GBP/JPY 162.57 160.45 161.72
GBP/CHF 1.7814 1.7666 1.7741

07:15 Switzerland Producer and Import Prices (MoM) (May) 0.1% -0.2%
07:15 Switzerland Producer and Import Prices (YoY) (May) -3.6%
09:00 European Monetary Union Employment Change (QoQ) (1Q) -0.3%
09:00 European Monetary Union Employment Change (YoY) (1Q) 0%
12:30 Canada Manufacturing Shipments (MoM) (Apr) 0.0% -2.7%
12:30 Canada New Motor Vehicle Sales (MoM) (Apr) 0.1% 6.3%
12:30 United States NY Empire State Manufacturing Index (Jun) -6.00 -4.55
13:00 United States Net Long-term TIC Flows (Apr) $60.1B $55.8B
13:00 United States Total Net TIC Flows (Apr) 23.2B