A Jump in Swiss Exports Could Signal A Bottoming of The Global Economy

[B]Fundamental Headlines[/B]

[I]• Single-Regulator Plan For Banks Now Close – Wall Street Journal
• Rise in Rates Jolts Markets – Wall Street Journal
• Opel talks stall on GM financing demand rising – Financial Times
• Fed May Boost Asset Purchases as Focus Shifts to Spurring Economic Rebound– Bloomberg
• Government Bond Yields Reach Six-Month High on Treasury Rout; Stocks Drop – Bloomberg[/I]

[B]EURUSD[/B] – German unemployment unexpectedly improved to 8.2% from 8.3% as the economy only lost 1,000 jobs. Economist had been calling for a loss of 64,000 in the month of May. However, it was the seventh straight month that the economy lost jobs which was reflected in the May Bloomberg Euro-zone retail PMI indicator falling to 46.3 from 48.9. The weak labor market has caused consumer’s to continue to retrench which was evident in consumer confidence remaining unchanged at -31. A slight improvement in overall economic confidence to 69.3 from 69 gives some hope that a bottom may be forming. Indeed, several ECB members have been acknowledging that signs are emerging of stabilization, but also cautioned that growth will remain weak for sometime. Discuss the topic and your trade ideas in the EUR/USD Forum.

[B]CHFUSD[/B] – The Swiss trade surplus widened to 2.6 billion Swiss franc from 161 million francs in March. Exports rising 8.3% which was the highest since April 2006 and a 0.3% decline in imports led to the increase. The rise in demand for Swiss goods is a positive sign for the Swiss and global economy. The export driven country had been crippled by the drop in global demand. Therefore, the pick up in demand demonstrates that we may be seeing a bottoming in the global recession which could signal that demand may be sustainable. For more news and resources, visit the Swiss Franc Currency Room.