USD Trading Outlook (12-06-2012)

U.S. Dollar Trading (USD) the devil was in the detail or lack of it yesterday with the weekend announcement of a bailout of for Spanish banks failing to help Spanish bonds during the European session. Investors are concerned about who will pay for the bailout and what the implications are for insurance against default. The downgrade of the biggest Spanish banks by Fitch added to the negativity and we saw selling all through to the end of the US session with EUR/USD down 200 pips from Asian highs. Looking ahead, May Import Prices forecast at -1 vs. -0.5% previously. Also May Export Prices forecast at -0.1% vs. 0.4% previously.