Fundamental Headlines
• Potential Conflicts Abound in Government Role – Wall Street Journal
• Chrysler Could Exit Bankruptcy Reorganization as Soon as Monday– Wall Street Journal
• Geithner calls for closer ties with China – Financial Times
• Stocks Gain Worldwide, Commodities, Pound Advance; Dollar, Treasuries Drop– Bloomberg
• GM Starts Bankruptcy Process After 77-Year Reign, $88 Billion Total Losses – Bloomberg
EURUSD – The Euro-zone PMI gauge rose to 40.7 from 36.8 in April which was the biggest increase since record keeping began in 1997. Germany, France and Italy-the region’s largest economies- all saw increases which sent the combined reading to its highest level in seven months. The improvement in activity will help the ECB keep their benchmark rate on hold at an already record low 1.00% at Thursday policy meeting. Discuss the topic and your trade ideas in the EUR/USD Forum.
GBPUSD – . The Hometrack housing survey showed that prices were flat in May which was the first time they didn’t decline in a year. The figures supported the increase in last week’s Nationwide reading which is supporting the argument that the housing sector is stabilizing as credit begins to thaw.. U.K. manufacturing PMI increase to 45.4 from 43.1 helping to strengthen the case that the economy is bottoming. An improvement in new orders to 48.9 from 46.4 is a sign that we could see the sector enter in expansion in the coming months. The BoE is expected to keep rates on hold at their next meeting and after increasing their bond purchase program by £50 billion pounds. For more news and resources, visit the Pound Currency Room.
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