The supra-national world currency proves devastating to the U.S. dollar.

[RTFX-Trading]

The supra-national world currency proves devastating to the U.S. dollar.

What's new:
BRIC: discussion at their June summit of a supra-national world currency.
United States: the number of bankruptcies shot to 40% in May
United States: an increase of 6.70% home sales pledges in April.
Euro area: unemployment rate at its highest since 1999.
Switzerland: PMI index rising to 39.8 in May.
Switzerland: GDP down 2.40% in 1st quarter.

Today:
09h48 France: services PMI index May, expected 47.6, last 46.5.
09h53 Germany: PMI services index May, expected 46.0, last 43.8.
09h58 Euro zone: PMI services index May, expected 44.7, last 43.7.
10:28 England: services PMI index May, expected 49.2, last 48.7.
11:00 Eurozone: GDP revised 1st quarter 2009, expected -2.50%, last -1.60%.
11:00 Eurozone: index of producer prices April, expected -0.80%, last -0.70%.
13.00 United States: the mortgage market index hebdo, last 786.
14.15 United States: ADP national employment report May, expected -520'000, last -491'000.
16.00 United States: Durable goods orders April, last 1.90%.
16.00 United States: Factory orders April, expected 0.90%, -0.90% last.
16.00 United States: PMI non-manufacturing May, expected 45.0, last 43.7
16.00 United States: FED speech President Ben Bernanke.

Rates in Asia and Indices:
EURUSD: 1.4330 - 1.4272.
USDCHF: 1.0639 - 1.0602.
GBPUSD: 1.6633 - 1.6547.
EURJPY: 137.03 - 136.26.
USDJPY: 95.82 - 95.37.
DowJones: 8'741 +1.27%
NASDAQ: +0.22% 1'480.
S & P 500: 945 +0.20%.
Nikkei: 9'755 +0.53%.
Gold: $ 987

Comments:

The Kremlin's statement that the summit of the BRIC (Russia, Brazil, India and China) will debate the idea of a supra-national world currency has had a devastating effect on U.S. dollar, which has undergone massive sales against its main rivals. The dollar is at its lowest against the pound sterling for seven months at 1.6630, its lowest against the Australian dollar at 0.8850 in 8 months. If the proposal to create another product to replace the US Dollars as reserve world currency happens, I dare not imagine the impact on the U.S. dollar.

Besides, the market continues to find new optimism about the stabilization of the economic situation, agreements of home sales are rising sharply. This is encouraging, however, no surprise: the price of housing in the United States has become more accessible due to the fall in housing sector.

At 14.15 today, the ADP National employment Report shall be announced. In two days time, on Friday at 14.30, the traditional employment report is expected. I do not expect encouraging figures, it is widely expected that the labor market will further deteriorate. According to statistics provided by the AACER (an organization which compiles figures for bankruptcies in the United States) during the month of May, 7,514 companies have declared bankruptcy in the United States. Within two years, the number of formal bankruptcies more than doubled. This figure is alarming and impressive: to date, on a daily average, 376 U.S. companies filed for bankruptcy.

Good Day

Nicolas Longchamp
RTFX Ltd
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