USD Trading Outlook (06-09-2011)

U.S. Dollar Trading (US) risk aversion and fear is spread through the market on Monday with Italian bond spreads increasing 57bps vs. Germany. European banking stocks slumped on EU debt the banks hold and US banks listed in Germany also fell sharply on weekend news the US would sue the banks over mortgages. The US was away on Holiday but futures showed heavy losses for Tuesday open. Looking ahead, ISM Services forecast at 51.2 vs. 52.7 previously.

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