although it did bounce slightly following the US jobless claims data, and has covered the $70.22 - $71.73 range. With both the equity markets and the dollar offering little in the way
of direction, attention turns to today's EIA Natural Gas inventory report, where the Platts Pre-Report Analyst Survey Suggests the data will show a 107 to 112 Bcf addition. The front light sweet contract is up 34 cents at $71.42.

Allergan Inc
The medical supplies company has won U.S. regulatory approval for its eye treatment Ozurdextm. The biodegradable implant treats macular edema, a type of swelling of the retina, due to the eye conditions branch retinal vein occlusion, or BRVO, or central retinal vein occlusion, also known as CRVO.

European Aero Defense Space Co
China Eastern Airlines Corp. said it intended to buy 20 new A320 jets list-priced at about $1.45B as it anticipates rising passenger demand on short- and medium-range flights.

Exelon Corp
The Chicago-based power generator will cut 500 jobs as it faces "economic challenges confronting all parts" of its business as part of a plan to save $350M. It plans to take a second-quarter pre-tax charge of approximately $40M as part of the program.

Euronext Inc
The securities exchange and Depository Trust & Clearing Corp. will form a joint venture to clear U.S. fixed-income derivatives. The new firm, to be called New York Portfolio Clearing, will offer "risk-management, clearing and settlement efficiencies for U.S. fixed-income securities and derivatives."

The yen and the dollar fell earlier as investor demand for the currencies as a haven waned after the World Bank said the Chinese economy will expand 7.2 percent this year, up from a previous forecast of 6.5 percent.
“Selling the yen against higher-yielding currencies certainly remains very attractive,” said Michael Klawitter, a foreign-exchange strategist at Dresdner-Commerzbank in Frankfurt. “The yen is on a clear downward trend. There are a lot of Japanese purchases of foreign bonds.

Nudging back to Y96.40 area in very light trade, returning to earlier highs. Chatter reminding of stops positioned above Y96.40 and offers at Y96.50/55. Fixes rate on stops.

Stocks have entered a relatively narrow trading range, in which the S&P 500 has spent the last two hours between 915 and 919. Telecom and utilities stocks have made a steady ascent to their best levels of the day, though. They are up 1.1% and 1.8%, respectively. Tech stocks have been mired in a fit of weakness, however. In turn, the sector is trading just above its session low with a 0.4% loss.

The yen and the dollar fell against a majority of their most-traded counterparts after reports showed U.S. economic growth recovered, reducing the haven demand for the currencies. “The market is trying to test the weaker dollar side in general because of some reversal in risk aversion,” said Hidetoshi Yanagihara, senior currency trader at Mizuho Corporate Bank in New York. “People are trying to get out of the dollar to get into other currencies like euros and Australian dollars.”
The Federal Reserve Bank of Philadelphia’s general economic index climbed to minus 2.2 from minus 22.6 in May, the slowest pace in nine months. Negative numbers signal contraction.
The Conference Board’s index of U.S. leading economic indicators also rose more than forecast in May for the second straight month, reinforcing signs that the worst recession in five decades may end this year. The gauge, which points to the direction of the economy over the next three to six months, rose 1.2 percent after a revised 1.1 percent in April.
The Euro's spike against the Greenback on better than expected Philadelphia Fed Business Index has found resistance at 1.4000 level and the pair has been launched down to test the 1.3950 support (MA-200 level in hourly chart). Currently the pair is trading around 1.3955/65, losing its profit and going 0.10% below today's opening price.
The Pound has already retaken back more than half of the ground lost on the European morning sell-off as rebound on 1.6210 intra-week low extended to 1.6350 level on buoyant results of June's Philadelphia Fed Business Index.
USD/JPY has risen above the 96.00 level after the better than expected Philadelphia Fed Business Index and the pair has posted 96.35 as fresh intra-day high. The pair has risen 60 pips in the last two hours. Currently the pair is trading positive on the day after rising 0.30% so far today from opening price to the current 96.25/35.

The major indices are drifting downward after climbing to a solid gain. The drift has taken the Nasdaq Composite back into negative territory.
The Nasdaq's decline comes as large-cap tech names like Microsoft (MSFT 23.41, -0.27) and Cisco (CSCO 19.04, -0.16) push lower. The Nasdaq is receiving some support from biotech and drug outfits Celgene (CELG 46.05, +1.11) and Gilead Sciences (GILD 46.51, +0.98), though.

Natural gas prices have dropped after the latest batch of weekly inventory data showed a larger-than-expected build. Contracts for natural gas are now at $4.15 each, down 2.4%.
Crude oil prices are trading a modest 0.4% higher at $71.30 per barrel. Year-to-date, oil prices are up 60%.
Precious metals are mixed as the U.S. dollar makes a modest pullback. With the greenback down 0.1% against a basket of major foreign currencies, gold prices are up 0.5% to $940.20 per ounce. Meanwhile, silver is down 0.5% to $14.22 per ounce.

But Philly data show "companies are not rushing to rehire workers suggesting they are not yet confident that the worst is over." So the bottom line may be slower decay in H2.

The stock market is on the mend after slipping in the first few minutes of trade. The advance has been broad-based.
The improved tone comes after the Philadelphia Fed Index showed a much smaller-than-expected decline for June. According to the data, the regional report came in with a -2.2 reading. It was expected to come in at -17.0.
Financial stocks (+2.1%) continue to show particular strength as regional banks (+2.9%), diversified banks (+1.9%), and diversified financial services stocks (+2.6%) snap back after getting hit in the prior session by ratings downgrades from Standard & Poor's.
Trading up -- NPBC +35.6%, NNI +20.2%, PIR +15.5%, SLM +10.1%, SJM +9.9%, ARM +9.7%, IRE +7.8%, FSYS +7.8%, DFS +7.7%, VICL +7.6%, MPEL +7.2%, MIPI +7.2%, LGF +6.7%, ING +6.3%, YRCW +5.1%;
Trading down -- SOA -13.8%, ACAS -13%, LIZ -10.7%, IMGN -9.9%, HPT -8.7%, HIMX -6.8%, GNTX -6.2%, QLTI -6%, JAZZ -5.6%, PCX -4.9%, RTP -4.9%

Initial jobless claims for the week ending June 13 totaled 608,000 which is a tad more than the 604,000 initial claims that were expected. The latest figures marked an increase of 3,000 from the previous week's moderately upwardly revised data. Continuing claims came in at 6.69 million, which marks a pullback from last week's record high. On average, economists had expected continuing claims to total 6.84 million after the data for the previous week was revised upward to 6.84 million. Stock futures have improved moderately in the wake of the news, and now point to a mixed start for the session.
After the opening bell, a report on leading economic indicators is expected to show an increase of 1% in May, matching the 1% increase from the prior month.
The Philadelphia Fed index, a reading on regional manufacturing, is expected to improve to negative 17 in June from negative 22.6 last month.
Treasury Secretary Tim Geithner will address Congress to detail President Obama's proposals on financial regulatory reform and answer questions.
Tension is growing between rivals Google (GOOG) and Microsoft (MSFT). Microsoft claimed Wednesday that a Google application disables a key function in Microsoft's Outlook email program.
BlackBerry maker Research in Motion (RIMM) is due to post quarterly results after U.S. markets close.
Stocks in Asia finished the session in negative territory. Major European markets were also lower in midday trading.
Oil fell 24 cents a barrel to $70.79.

Mizuho economist Steven Ricchiuto says "The small 14,000 decline in the four week unemploy claims moving average between survey weeks and the unexpected 148,000 decline in the continuing claims series in the June 6th week suggests a payroll decline at least as large as last month's 345,000 and potentially as high as a 450,000 decline."

Gets a push higher to Y96.18 area and thus to new highs for the session, the pair looking like a few stops were popped above the Y96.08 overnight high after continuing claims in the US recorded a steep drop and as US stock futures turn mildly positive. Offers eyed Y96.30, more at Y96.50. Break above will target Y96.80 (38.2% of Y98.70 - Y95.50 decline). Next band of resistance is near Y97.40 (Jun 16 high). Strong support comes at yesterday’s lows on Y95.40.

Currently holding steady around $1.3930 into early NY trade, the rate holding off European morning pullback lows at $1.3907, having corrected off earlier rally extension highs of $1.3990. Bids said to remain in place toward $1.3900, with one tech trader adding that upside remains favoured while rate can hold above $1.3895. Stops seen placed through $1.3895/90. Offers seen at $1.3940/45 ahead of $1.3960 and stronger area between $1.3990/00. A break above $1.4000 to open a move on toward $1.4040 (current channel top) where decent sized sell interest is said to reside.

Data:
08:30 UK PSNCR (May), bln 19,9
08:30 UK M4 money supply (May) provisional Y/Y 16,6%
08:30 UK M4 money supply (May) provisional 0,2%
08:30 UK Retail sales (May) Y/Y -1,6%
08:30 UK Retail sales (May) -0,6%
10:00 UK CBI industrial output balance (June) -17%
10:00 UK CBI industrial order books balance (June) -51%
11:00 Canada CPI excluding food and energy (May) Y/Y 2.0%
11:00 Canada CPI excluding food and energy (May) 0.4%
11:00 Canada CPI (May) Y/Y 0.1%
11:00 Canada CPI (May) 0.7%

The pound declined against the dollar and the euro after U.K. retail sales unexpectedly dropped in May for the first time in three months.
The British currency also fell versus the Japanese yen and Swiss franc after the Office for National Statistics said sales fell 0.6 percent from April. The Swiss franc advanced versus the euro after the country’s central bank signaled it may let its currency strengthen beyond 1.50. The dollar and yen were little changed against the euro.
“As data has surprised to the upside over the past month, sterling is vulnerable to some disappointment and the retail sales figures were clearly disappointing,” said Marcus Hettinger, a foreign-exchange strategist in Zurich at Credit Suisse Group AG, Switzerland largest bank by market value. The pound may depreciate to 90 pence per euro in the next three months, he said.
The yen and the dollar fell earlier as investor demand for the currencies as a haven waned after the World Bank said the Chinese economy will expand 7.2 percent this year, up from a previous forecast of 6.5 percent.
“Selling the yen against higher-yielding currencies certainly remains very attractive,” said Michael Klawitter, a foreign-exchange strategist at Dresdner-Commerzbank in Frankfurt. “The yen is on a clear downward trend. There are a lot of Japanese purchases of foreign bonds.

EUR/USD the pair remained within the limits of $1,3900-$ 1,3990

Today’s US data include Leading indicators and Philly Fed’s index (at 14:00 GMT). Analysts predict index recovered in June to -16,5 after -22,6 in May.

Settles between $1.6245/60 ahead of the New York open with recovery attempts off earlier lows at $1.6187 failing to push backa bove reported resistance at $1.6280. Bids seen back in place toward $1.6200, with one trader at a clearing bank reportly suggesting that a third break under the figure could lead to a deeper corrective pullback in the rate.

The pound declined against the dollar and the euro after U.K. retail sales unexpectedly dropped in May for the first time in three months.
The British currency also fell versus the Japanese yen and Swiss franc after the Office for National Statistics said sales fell 0.6 percent from April. The Swiss franc advanced versus the euro after the country’s central bank signaled it may let its currency strengthen beyond 1.50. The dollar and yen were little changed against the euro.
“As data has surprised to the upside over the past month, sterling is vulnerable to some disappointment and the retail sales figures were clearly disappointing,” said Marcus Hettinger, a foreign-exchange strategist in Zurich at Credit Suisse Group AG, Switzerland largest bank by market value. The pound may depreciate to 90 pence per euro in the next three months, he said.
The yen and the dollar fell earlier as investor demand for the currencies as a haven waned after the World Bank said the Chinese economy will expand 7.2 percent this year, up from a previous forecast of 6.5 percent.
“Selling the yen against higher-yielding currencies certainly remains very attractive,” said Michael Klawitter, a foreign-exchange strategist at Dresdner-Commerzbank in Frankfurt. “The yen is on a clear downward trend. There are a lot of Japanese purchases of foreign bonds.

CPI excluding food and energy (May) Y/Y 2.0%
CPI excluding food and energy (May) 0.4%
CPI (May) Y/Y 0.1%
CPI (May) 0.7%

FOMC meeting statement should "acknowledge the recovery and begin articulating an exit strategy from near-zero rates and quantitative easing, even if the Fed makes clear that these steps remain well into the future."

Resistance 3: Y97.40
Resistance 2: Y96.80
Resistance 1: Y96.00
Current price: Y95.78
Support 1: Y95.40
Support 2: Y94.40
Support 3: Y93.80
COMMENTS: Tech hasn't changed. Nearest resistance - Y96.00 . Break above will target Y96.80 (38.2% of Y98.70 - Y95.50 decline). Next band of resistance is near Y97.40 (Jun 16 high). Strong support comes at yesterday’s lows on Y95.40. Below – on Y94.40. Stronger level comes at May 22 lows near Y93.80.

CBI industrial output balance (June) -17%
CBI industrial order books balance (June) -51%

Resistance 3: Chf1.1150
Resistance 2:Chf1.1050
Resistance 1:Chf1.0950
Current price: Chf 1.0786
Support 1:Chf1.0760
Support 2:Chf1.0650
Support 3: Chf1.0600
СOMMENTS: Techs hasn’t changed. Resistance still comes at Chf1.0950/30. Above the target is on Chf1.1050 (May 21 high) and Chf1.1150 (50% of Chf1.1720 - Chf1.0590 move). Support is near yesterday’s low on Chf1.0760, stronger – on Chf1.0650 (Jun 11 low). Then the rate may decline to Chf1.0590/00 (Jun 02 low).

Resistance 3:$1.6640
Resistance 2:$1.6580
Resistance 1: $1.6500
Current price: $1.6222
Support 1: $1.6200
Support 2: $1.6120
Support 3: $1.5960
COMMENTS: The published data became the reason of sharp falling of a sterling. The pair tests support in the field of week's low $1.6200. Below loss of a rate can will increase up to $1.6120 and further to $1,5960 (23,6% FIBO of $1,3650-$ 1,6660 growth). Strong resistance is in the field of a yesterday's high on $1.6500. Above growth is probable up to $1.6580 and then - to $1.6640 (June 03 high)

Resistance 3:$1.4180
Resistance 2:$1.4040
Resistance 1:$1.3980
Current price: $1.3922
Support 1: $1.3800
Support 2: $1.3600
Support 3: $1.3440
COMMENTS: The pair was appeared under pressure. Support comes at $1.3800 (yesterday’s low). Below correction may widen to $1.3600 (50% Fibo of $1.2880 - $1.4330). Further downside target is around 61.8% Fibo on $1.3440. Session high in the field of $1.3980 are intermediate resistance. Above there is a room for further gains up to $1.4040 (Jun 12 hourly high). Stronger resistance comes near $1.4180 (Jun 11 high).

- 3-mth LIBOR moved down but not as much as desired
- Progress in bringing down LIBOR will be slow
- See some positive signs on markets
- See further decline in Swiss demand, investment
- Hope positive signs abroad transmitted to Switzerland
- GDP risks still clearly downward.
- FX intervention successful, halted Franc rise.

PSNCR (May), bln 19,9
Retail sales (May) Y/Y -1,6%
Retail sales (May) -0,6%

The dollar fell for a third day against the euro before a U.S. report that may show the Philadelphia region’s manufacturing shrank for a ninth month, adding to signs the Federal Reserve will keep interest rates low.
The euro gained for a second day versus the pound on speculation European Central Bank officials speaking tomorrow will signal they intend to refrain from cutting borrowing costs. ECB Governing Council member Michael Bonello said yesterday policy makers haven’t discussed cutting borrowing costs further. Fellow members including Mario Draghi and Lorenzo Bini Smaghi speak tomorrow.
The yen fell against the Australian dollar after a report showed Japanese investors bought more overseas bonds then they sold for a sixth week.

EUR/USD holds within the $1.3920/90 range.

EUR/USD: $1.4000, $1.3750
USD/JPY: Y96.30, Y95.00, Y94.75, Y97.85/95, Y98.00
EUR/JPY: Y133.30
AUS/USD: $0.7950, $0.7985

Japan's benchmark stock indices ended Thursday's session lower, although off the day's worst levels, as the stronger yen weighed on sentiment. The Nikkei 225 was lower by 137.13 points, or 1.39%, to stand at 9703.72. The broader-based TOPIX was 11.82 points lower at 911.21.

Majors close
Nikkei +87.97 (+0.9%) 9840.85
Topix +8.27 (+0.9%) 923.03
FTSE -50.11 (-1.16%) 4278.46
DAX -90.74 (-1.86%) 4799.98
CAC -52.81 (-1.64%) 3161.14
Dow -7.49 (-0.09%) 8497.18
NASDAQ +11.88 (+0.66%) 1808.06
S&P -1.26 (-0.14%) 910.71
NYMEX Crude Oil +0.56 (+0.80%) $70.99

Japanese stocks rose, snapping a two-day drop, led by green technology-related shares ahead of the start of a Nomura Holdings Inc. fund focusing on the sector.
GS Yuasa Corp., which owns a battery-production venture with Honda Motor Co., soared 12%, while Sanyo Electric Co., Japan’s biggest maker of rechargeable batteries, leapt 14%. Sumitomo Forestry Co. surged 11% after Morgan Stanley upgraded the homebuilder. DA Office Investment Corp. climbed 15% on a newspaper report Daiwa Securities Group Inc. plans to invest in the real estate investment trust.
The Nikkei has lost 2.9% this week and is set for its first weekly decline since the five days ended May 22.

European stocks fell for a fourth straight day, the longest stretch of declines since February, amid concern that the three-month rally has outpaced the prospects for earnings growth.
Sandvik AB plummeted 8.5% as the world’s largest maker of metal-cutting tools said it expects to post an operating loss as the economic slump curbs earnings. Iberdrola SA, Spain’s largest utility, and J Sainsbury Plc, the U.K.’s third-biggest supermarket owner, slumped more than 5% after announcing share sales.
Aeroports de Paris sank 8.4%. The state- controlled operator of Charles de Gaulle and Orly airports said 2009 earnings before interest, taxes, depreciation and amortization will be similar to that of 2008. That compares with an earlier forecast of “slightly positive” profit growth. Societe Generale SA downgraded the shares to ‘sell’ from “hold.”
K+S plunged 14%. Europe’s largest producer of potash used in fertilizers said it expects “further significant reduction in revenues and earnings” this year.

The Nasdaq gained Wednesday, thanks to a tech rally, but the broader market meandered, with financials sliding after Standard & Poor's cut its outlook on 22 banks.

Data released
05:00 Japan BoJ monthly economic report (June)
08:30 UK Claimant count (May) 39,300 62,300 49 600 (57 100)
08:30 UK Claimant count rate (May) 4.8% 4.7% 4.7%
08:30 UK Average earnings (3 months to April) Y/Y 0.8% 0.1% -0.3 (-0.4)%
08:30 UK Average earnings ex bonuses (3 months to April) Y/Y 2.7% 2.8% 3.0%
08:30 UK ILO Jobless rate (3 months to April) 7.2% 7.3% 7.1%
08:30 UK BoE meeting minutes (03-04.06)
09:00 EU(16) Trade balance (April) unadjusted, bln 2.7 -1.5 0.4
12:30 USA CPI (May) 0.1% 0.3% 0.0%
12:30 USA CPI (May) Y/Y -1.3% -0.9% -0.7%
12:30 USA CPI excluding food and energy (May) 0.1% 0.1% 0.3%
12:30 USA CPI excluding food and energy (May) Y/Y 1.8% 1.8% 1.9%
12:30 USA Current account (Q1), bln -101.5 -90.0 -154.9 (-132.8)

The dollar dropped to the lowest level versus the yen in two weeks as slower-than-forecast monthly inflation in May led traders to reduce bets the Federal Reserve will boost the target lending rate.
The U.S. currency weakened after a Labor Department report showed consumer prices had the biggest 12-month drop since 1950. Consumer prices increased 0.1% in May, after no change in the prior month, the Labor Department reported. In the 12 months ended in May, costs fell 1.3%, the biggest decline in almost 60 years.
Interest-rate futures indicated a 46% chance the Fed will boost the zero to 0.25% target rate for overnight lending between banks to at least 0.5% by its December meeting, down from 64% odds a week ago.
The pound fell against the euro and dollar as Bank of England minutes indicated policy makers voted unanimously this month to extend asset purchases to keep interest rates low.

EUR/USD rose from $1.3800 to the highs on $1.3921. But rate failed to keep positions and retreated to $1.3824. Later euro reprinted highs on $1.3984.

Resistance 3: Y97.40
Resistance 2: Y96.80
Resistance 1: Y96.00
Current price: Y96.06
Support 1: Y95.40
Support 2: Y94.40
Support 3: Y93.80
COMMENTS: Dollar probes Y96.00 resistance. Break above will target Y96.80 (38.2% of Y98.70 - Y95.50 decline). Next band of resistance is near Y97.40 (Jun 16 high). Strong support comes at yesterday’s lows on Y95.40. Below – on Y94.40. Stronger level comes at May 22 lows near Y93.80.

Resistance 3: Chf1.1150
Resistance 2:Chf1.1050
Resistance 1:Chf1.0950
Current price: Chf 1.0797
Support 1:Chf1.0760
Support 2:Chf1.0650
Support 3: Chf1.0600
СOMMENTS: Techs in dollar hasn’t changed since yesterday. Resistance still comes at Chf1.0950/30. Above the target is on Chf1.1050 (May 21 high) and Chf1.1150 (50% of Chf1.1720 - Chf1.0590 move). Support is near yesterday’s low on Chf1.0760, stronger – on Chf1.0650 (Jun 11 low). Then the rate may decline to Chf1.0590/00 (Jun 02 low).

Resistance 3:$1.6640
Resistance 2:$1.6580
Resistance 1: $1.6500
Current price: $1.6387
Support 1: $1.6340
Support 2: $1.6200
Support 3: $1.6120
COMMENTS: The sterling tries to recover. Strong resistance is around yesterday’s high on $1.6500. Above the rise may extend to $1.6580 and then – to $1.6640 (Jun 03 high). Support comes at session lows at $1.6340. Below losses may widen to $1.6200/10 and then – to $1.6120.

Resistance 3:$1.4180
Resistance 2:$1.4040
Resistance 1:$1.3980
Current price: $1.3935
Support 1: $1.3800
Support 2: $1.3600
Support 3: $1.3440
COMMENTS: Rate set stable a bit lows session highs on $1.3980 (minor resistance). Above there is a room for further gains up to $1.4040 (Jun 12 hourly high). Stronger resistance comes near $1.4180 (Jun 11 high). Support comes at $1.3800 (yesterday’s low). Below correction may widen to $1.3600 (50% Fibo of $1.2880 - $1.4330). Further downside target is around 61.8% Fibo on $1.3440.

High Low Close
EUR/USD 1.3980 1.3805 1.3941
GBP/USD 1.6476 1.6217 1.6395
USD/JPY 96.76 95.51 95.73
USD/CHF 1.0922 1.0763 1.0797

EUR/JPY 134.59 132.35 133.49
EUR/GBP 0.8535 0.8430 0.8502
GBP/JPY 159.34 155.60 157.00
GBP/CHF 1.7859 1.7658 1.7708

Change % Change Last
Nikkei +87.97 (+0.9%) 9840.85
Topix +8.27 (+0.9%) 923.03
FTSE -50.11 (-1.16%) 4278.46
DAX -90.74 (-1.86%) 4799.98
CAC -52.81 (-1.64%) 3161.14
Dow -7.49 (-0.09%) 8497.18
NASDAQ +11.88 (+0.66%) 1808.06
S&P -1.26 (-0.14%) 910.71
NYMEX Crude Oil +0.56 (+0.80%) $70.99

08:30 UK Retail sales (May) 0.1% 0.9%
08:30 UK Retail sales (May) Y/Y -0.5% 2.6%
08:30 UK M4 money supply (May) provisional 0.7% 0.2%
08:30 UK M4 money supply (May) provisional Y/Y 17.3% 17.4%
08:30 UK PSNCR (May), bln 16.3 5.2
10:00 UK CBI industrial order books balance (June) -49% -56%
10:00 UK CBI industrial output balance (June) - -17%
11:00 Canada CPI (May) 0.4% -0.1%
11:00 Canada CPI (May) Y/Y -0.2% 0.4%
11:00 Canada CPI excluding food and energy (May) 0.1% 0.1%
11:00 Canada CPI excluding food and energy (May) Y/Y 1.6% 1.8%
12:30 USA Jobless claims (week to 13.06) 608K 601K
13:00 Swiss SNB press-conference
14:00 USA Leading indicators (May) 0.9% 1.0%
14:00 USA Philadelphia Fed index (June) -16.5 -22.6
20:30 USA M2 money supply (08.06), bln - -7.5
23:50 Japan BoJ meeting minutes (21-22.05)