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US$ Down Ahead of Greek Vote

The U.S. dollar weakened versus nearly all of its counterparts as rising global stocks cut demand for the safety of U.S. assets.  The greenback fell to a one week low against the Euro amid optimism that Greek lawmakers will pass their strict austerity package today.  The U.S. dollar also tumbled against the Aussie and New Zealand dollars as the price of commodities rose.  However, the Swiss franc slipped versus all of its peers after the nation’s economic barometer fell in June, adding to signs the franc’s ascent and a faltering euro-region economy may hurt economic growth.  The monthly gauge that aims to predict the economy’s direction about six months ahead dropped to 2.23 from 2.30 in May.  Meanwhile, the U.S. economic docket showed that mortgage applications decreased 2.7% from the prior week.  Later, Pending Home sales in May are expected to jump 3.0%, after falling –11.6% in the month prior. 

The Euro climbed to its strongest level in a week versus the U.S. dollar as investors bet Greek Prime Minister George Papandreou will scrape through approval of the controversial austerity measures even as protests raged and workers took to the streets in a general strike.  Expectations are that the vote will be passed by a close margin, giving the Euro some near-term momentum.  Papandreou has called lawmakers to “do their patriotic duty” and pass the bill, as well as a vote tomorrow to authorize implementation of the austerity plan, to ensure the debt-stricken nation can receive further rescue funds.  Meanwhile, European confidence in the economic outlook dropped to the lowest in eight months in June.  An index of executive and consumer sentiment in the 17-nation euro region fell to 105.1 from 105.5 in May, the lowest since October. 

After falling modestly during yesterday’s trading session, the Japanese yen held a tight range against the U.S. dollar overnight.  Japan’s industrial production rose at the fastest pace in more than 50 years, led by carmakers as they restored operations at plants after a record earthquake and tsunami on March 11^th.  Factory output increased 5.7% in May from April, the biggest gain since 1953 the Trade Ministry said in Tokyo today. 

The British pound gained versus the U.S. dollar on general heightened risk appetite, but fell against most of its counterparts following poor economic data.  Indeed, a report showed that U.K. mortgage approvals stayed near a four-month low in May.  Banks granted 45,900 homes last month, failing to meet expectations of 46,300.  The U.K. central bank has held its benchmark rate at a record low of 0.5% since April 2009 to support growth even as inflation accelerated to 4.5% in May, more than twice the government’s 2.0% target.

US$ Largely Unchanged Versus Euro Ahead of Austerity Vote

After falling yesterday on a “risk on” move, the U.S. dollar retraced some of its losses overnight despite a rise in Asian equities.  The greenback stiffened against the Euro as Greek police fired tear gas to disperse protesters in the center of Athens as labor unions shut down government services before a vote by lawmakers on austerity measures that may determine if the nation can avoid a default.  The U.S. dollar rose the most against the Swedish Krona after Statistics Sweden said retail sales slipped an annual 1.1% in May.  The median estimate of economists was for a rise of 2.0%.  Later this morning, the S&P CaseShiller Home price index is expected to register negative price growth in the month of April and Consumer confidence is expected to rise to 61.0 in June from 60.8 in May.  As U.S. equity futures foreshadow a largely flat open for American shares, expect the U.S. dollar to likely hold a rather tight range versus the Euro and other higher-yielding counterparts as market participants await the results of the Greek parliament’s vote tomorrow. 

The Euro held a tight range against most of its counterparts overnight before Greek lawmakers vote on austerity measures needed to prevent the currency bloc’s first sovereign default.  Greek Prime Minister Papandreou called on lawmakers to obey their “patriotic conscience” as they began to debate the five-year budget plan yesterday.  Many analysts believe that the common currency will maintain current ranges throughout our trading session ahead of the vote, given that it is so crucial and so imminent.  If the Greek parliament doest now pass the austerity measures, the Euro will likely plummet.  However, there seems to be an underlying assumption that the votes will be successful.  Indeed, European Central Bank Executive Board member Juergen Stark said “There is only this one plan A” for Greece.  He added that he doesn’t doubt the will of the Greek parliament overall to implement the agreed savings plan. 

The Japanese yen held a tight range against the U.S. dollar despite a steady stream of negative economic data from the island nation.  Japan’s retail sales fell, albeit a slower pace than economists estimated, in May.  Sales slid 1.3% from a year earlier, the Trade Ministry said in Tokyo today.  However, the print showed the smallest drop since the March 11 earthquake.  The data had little affect on the USD/JPY as the currency pair continues to rise and fall with global equities. 

The British pound fell against most of its rivals, but held tight against the U.S. dollar, as Bank of England policy maker Adam Posen said the U.K. economy is at “little risk of inflation,” adding to market speculation that interest rates may stay at a record low in coming months.  Posen, who has voted since October to extend the Bank’s bond buying under the quantitative easing program, said that there is “little or no credit growth, little wage growth beyond productivity, little evidence of rising inflation expectations” in the U.K., adding to the bearish outlook. 

US$ Holds Friday's Gains as Markets Await Greek Vote

The U.S. dollar held relatively flat ranges against most of its trading partners overnight, holding on to its gains from Friday’s close.  However, the greenback was able to rally against a number of commodity-based currencies as the price of oil continued to retrace.  Indeed, the Canadian dollar touched the lowest level in three months overnight against its American counterpart.  The Australian dollar fell to an 11-week low as traders added to bets the Reserve Bank of Australia will lower its interest rates by October, and the Kiwi slid after a government report showed the trade surplus narrowed last month more than economists forecast.  Consumer spending in the U.S. unexpectedly stagnated in May as employment prospects dimmed and rising inflation caused Americans to cut back.  Personal spending registered at 0.0%, the weakest reading since June 2010.  The report also showed incomes increased 0.3% for a second month.  The gain was also less than forecast.  Tomorrow sees the release of the S&P Case-Shiller home price index and Consumer confidence, followed by MBA Mortgage Applications and Pending home sales on Wednesday.  With no major economic data slated for Friday, weekly jobless claims and Chicago PMI will round out the week on Friday.

The Euro strengthened against most of its peers, while holding flat against the U.S. dollar, amid optimism Greece’s parliament will approve austerity measures required to help avert the currency bloc’s first sovereign default.   Greek lawmakers will today start debating the 78-billion-euro budget package that officials say is needed to receive a loan payment and future financing.  Vittorio Grilli, head of the European Union’s Economic and Finance Committee, med representatives of some of the world’s banks to discuss how private investors can participate in a new rescue.  However, if the Greek Parliament fails to pass the budget cuts, the Euro will all but certainly fall to new lows.

The Japanese yen weakened modestly versus the U.S. dollar overnight, but continues to maintain its tight range from the past month.  With the pair continuing to ebb and flow with the prevailing risk sentiment, expect the yen to remain in familiar ranges for the foreseeable future. 

The British pound rose against most of its rivals, save the U.S. dollar, after a survey showed U.K. business owners expect demand to pick up, prompting investors to pare bets that borrowing costs will remain at a record low for another year.  The Lloyds TSB Business Barometer Index for business activity in the next 12 months rose to 46 in June, the highest since May last year.  Economic optimism rose to 36 from 14.  The pound also found support after the Bank of International Settlements said in an annual report yesterday that central banks need to start raising interest rates to control inflation. 

US$ Flat As Q1 GDP Meets Expectations

The U.S. dollar traded in a mixed direction overnight as the greenback appears to be settling into new, higher ranges against its higher-yielding counterparts.  Indeed, the dollar rose against the Euro despite European equities rallying in early trading.  Market participants will likely focus on a slew of data released this morning in the U.S. to dictate general market sentiment and thus the direction of the U.S. dollar.  The U.S. economy grew at a 1.9% pace in the first quarter, marking the start of what Federal Reserve policy makers project is a temporary slowdown in growth.  The revised GDP numbers matches the median forecast of economists and follows a 3.1% gain in the prior quarter.  A separate report showed orders for durable goods climbed more than forecast in May after slumping the prior month, easing concern manufacturing will share in an extended U.S. growth slowdown.  Bookings for equipment meant to last at least three years rose 1.9% after a 2.7% declined the prior month, according to the Commerce Department.  The U.S. dollar has shown little reaction to the data in early trading. 

The Euro fell modestly against the U.S. dollar amid speculation a European Union pledge to stabilize the region’s economy won’t resolve a sovereign-debt crisis.  Late yesterday, EU leaders vowed to stave off a Greek default as long as Prime Minister George Papandreou pushes through a package of austerity measures next week.  European Central Bank Executive Board member Jose Manual Gonzalez-Paramo said the end of the crisis won’t happen soon.  Failure to secure aid would push Greece to the brink of default, with the country needing funds to cover 6.6 billion euros of maturing bonds in August.  The Euro retraced some of its losses following a report that showed the Ifo index of German business confidence unexpectedly increased.  The survey of 7,000 executives for June increased to 114.5 from 114.2 in May. 

The Japanese yen continues to hold its tight range from the last month versus the U.S. dollar.  We expect the yen to continue to act like Duran Duran and stay stuck in the 80s of the coming weeks.

The British pound held a tight range against the U.S. dollar overnight despite a modest rise in risk sentiment.  The pound is headed for a fourth weekly decline against the dollar amid speculation that the Bank of England will keep monetary policy loose to counter faltering growth.  Minutes released from the British central bank’s last meeting, released this week, showed officials voted 7-2 to hold interest rates at a record low.  Some officials foresaw more bond purchase.  As the Bank of England becomes increasingly dovish, the pound will likely remain soft for the duration of the summer. 

US$ Rallies Against Pound on Dovish BOE Minutes

The U.S. dollar traded in a mixed direction overnight, gaining modestly versus the Euro even after the Greek Prime Minister won a confidence vote last night.  The greenback gained the most versus the British pound as policy makers held an increasingly dovish tone towards future policy.  However, the U.S. dollar fell against the Norwegian Krone as the Norges Bank kept its benchmark interest rate on hold at 2.25% and said gradual increases are projected for the second part of the year.  Meanwhile, the economic docket showed mortgage applications in the U.S. dropped last week from the highest level this year, led by the biggest decline in refinancing in April.  Later this morning, the house price index for April is expected to register –0.3% in April, flat from a –0.3% in March.  Investors will then shift their attention to the conclusion of the Federal Reserve’s two-day policy meeting and Chairman Ben Bernanke’s press conference later in the afternoon.  Policy makers are widely expected to keep the benchmark at zero to 0.25%, where it has been since December 2008.  The Fed is scheduled to end its $600 billion second round of bond-buying, known as quantitative easing, this month.

The Euro declined against most of its major counterparts amid speculation Greek Prime Minister George Papandreou will struggle to pass additional austerity measures, even after winning a confidence vote last night.  Lawmakers in Athens supported the Prime Minister in a 155-143 vote after he shuffled his Cabinet.  Papandreou will now seek approval next week for a 78-billion euro package of budget cuts and asset sales to stave off the threat of default.  European leaders will discuss Greece’s needs at a two-day summit in Brussels starting tomorrow and finance chiefs will decide on July 3^rd whether Greece has met conditions for the next aid payment.  The International Monetary Fund, a contributor of a third of the bailout money for Greece and two other euro-area countries that have received bailouts, Ireland and Portugal, has warned European Union leaders that failure to take decisive action on the debt crisis risks triggering “large global spillovers.” 

The Japanese yen rose against nearly all of its rivals overnight, despite a rise in Asian equities, as worries surrounding the European debt crisis led investors to the relative safety of the Japanese currency.  Nevertheless, the yen is largely unchanged versus its American counterpart over the last few weeks as the pair continues to struggle to find a definitive direction.  Indeed, the languid performance of the currency pair led one analyst at Citigroup to quip that "dollar/yen continues to resemble Duran Duran in the fact that it is stuck in the '80s."

The British pound fell against the U.S. dollar and the Euro as minutes of the latest Bank of England meeting showed some policy makers saw a risk that more bond purchases may be required.  The majority of the MPC said the “current weakness of demand growth was likely to persist for longer than previously thought, according to minutes of the June 8-9^th meeting published today.  Europe’s debt crisis highlighted the potential for further shocks, and for some members, it “was possible that further asset purchases might become warranted,” the notes showed.  Bank of England Chief Economist Spencer Dale and Martin Weale continued to push for a quarter-point increase in the benchmark rate, while Governor Meryvn King and the other six members of the committee voted for no change. 

US$ Comes Under Pressure on Improved Risk Sentiment

The U.S. dollar fell against most of its peers before a report that is predicted to show existing home sales in the U.S. slumped in May, bolstering the case for the Federal Reserve to keep interest rates at a record low.  Purchases of existing home sales are expected to decrease 5.0%, the weakest since November, according to the median forecast of economists.   The dollar weakened to an almost one-week low versus the Euro as the Federal Reserve begins its two-day policy meeting today amid continued signs the U.S. economy is under pressure.  Futures on the Chicago Board of Trade show the likelihood the Fed will increase its target rate by March 2012 dropped to 21.0% from 30.0% a month ago.  The Federal Open Market Committee has kept its benchmark rate unchanged between zero and 0.25% since December 2008.  Ahead of the Fed’s interest rate decision tomorrow afternoon, expect the greenback to remain under pressure during our trading session as U.S. equity futures foreshadow a higher open. 

The Euro rose against the U.S. dollar as European equities advanced after European leaders said a Greek default can be avoided.  Today Greek Prime Minister George Papandreou seeks to secure multi-party support for his government’s austerity measures, a condition for receiving aid needed to avoid a default.  He called a vote last week after opposition parties rejected pleas for national consensus and the prime minister’s handling of the crisis led to defections from his party.  The 17-nation currency also found support after Jean-Claude Juncker, who leads the group of euro-area finance ministers, said Papandreou assured him the Greek government would do everything to ensure delivery of financial aid.  The Euro pared its gains after a report today showed investor confidence in Germany, the Euro-region’s biggest economy, slumped to the lowest in 2 ½ years this month.  Nevertheless, expect news from the Greek parliament to drive the direction of the Euro today.  However, some expect the meeting to last late into the night and possibly later than our trading session. 

The Japanese yen continues to hold a tight range against the U.S. dollar, as the pair has been unable to find a definitive direction.  However, a number of analysts have begun to forecast minimal gains for the yen in the coming months even as Japan falls into its third recession in a decade.  Some investors have indicated the slowdown in U.S. growth, Europe’s sovereign debt crisis and uprisings in the Middle East as reason to purchase the yen as a safe-haven. 

The British pound held familiar ranges versus the U.S. dollar, but fell against the Euro after Bank of England Markets Director Paul Fischer said officials haven’t ruled out adding to their bond-purchase program if needed to support the economy.  More stimulus is “still very much on the table as one of our potential policy actions and it hasn’t been ruled out,” Fisher said at a conference this morning.  Meanwhile, data today showed Britain’s budget deficit narrowed less than forecast to 17.4 billion pounds in May.  Market participants will now await the release of the central bank’s minutes of its most recent policy meeting tomorrow.  The sterling could come under pressures as the Bank of England has shifted to a more dovish tone over the past couple of months.   

US$ Remains Near Recent Highs On Greek Debt Worries

The U.S. dollar strengthened against most of its rivals as declines in commodities and stock markets around the world boosted demand for safer assets.  Indeed, the Stoxx Europe 600 Index of European equities fell over 1.0% and U.S. stock futures foreshadow a lower open for American shares.  In addition, the price of crude oil has fallen nearly 1.5% today on global growth concerns.  There is no major economic data slated for release today, but a report tomorrow is expected to show U.S. home sales shrank last month to the lowest level of the year.  Attention will then shift to the Federal Reserve’s meeting on Wednesday, with the FOMC not expected to signal a third round of quantitative easing.  The Fed will conclude its $600 billion dollar bond-buying program, known as quantitative easing, by the end of this month.  On Thursday, weekly jobless claims and New Home sales are set to hit the wire, followed by Gross Domestic Product and durable goods orders on Friday.

The Euro pushed lower against the U.S. dollar and most of its other trading parents after European governments failed to agree on releasing a loan payment to spare Greece from default on its debt.  Greek Prime Minister George Papandreou kicked off a three-day debate yesterday on a confidence motion in his government.  He called for a vote last week after opposition parties rejected pleas for national consensus and the prime minister’s handling of the crisis led to defections from his party.  Greece needs parliamentary approval of a 78 billion-euro package of budget cuts to ensure the payment of a fifth loan under last year’s 100 billion-euro bailout.  Euro-area finance ministers pushed Greece to pass laws to cut the deficit and sell state assets, and left open whether the country will get the full 12 billion euros promised for next month. 

The Japanese yen gained across the board, save the U.S. dollar, as global equities continued their march lower.  The yen snapped two days of gains versus the greenback after the Finance Ministry said Japan’s exports fell 10.3%% in May from a year earlier, adding to signs the economy may struggle to recover from the March 11^th earthquake and tsunami.  In the long term, Japan’s deteriorating finances may restrain the yen.  The nation’s debt is twice the size of its economy, the most among developed countries, and its Aa2 credit rating was put on review for a downgrade by Moody’s Investor Service.   

The British pound opened this week’s trading largely unchanged from Friday, even though higher-yielding currencies have become under pressure as equities tick lower.  Average home prices in London jumped 1.8% from May according to London-based Rightmove Plc, the operator of the U.K.’s biggest property website.  Nationally, values increased 0.6%, which added it doesn’t expect gains to be sustained.  Later this week, the Bank of England is set to publish the minutes of its last policy meeting.  Growth and leading indicators remain weak, so over all the MPC is likely to offer a cautious tone in the minutes.  Therefore, the sterling could come under pressure during the second half of the week. 

US$ Falls as Agreement on Greek Debt Crisis Boosts Stocks

The U.S. dollar retreated from recent highs overnight against all of its major rivals as European stocks rallied after Germany and France reached an agreement on the Greek debt crisis.  Indeed, French President Nicolas Sarkozy said a “breakthrough” had been made following a meeting with German Chancellor Angela Merkel.  The “risk on” sentiment spread globally and has pushed American stock futures up nearly 1.0%, weighing on the greenback.  With a light economic docket scheduled for the United States, expect the U.S. dollar to take its cue from equity markets.  Nevertheless, the University of Michigan confidence is expected to register at 74.0, down from 74.3 in the month prior.  In addition, Leading indicators are expected to climb 0.3% in May, up from –0.3% decline in April.

The Euro strengthened against all of its counterparts overnight after a solution involving holders of Greek bonds in a rescue package for the indebted nation has been found, French President Nicolas Sarkozy told reports today in Berlin at a news conference with German Chancellor Merkel.  The euro has been under pressure over the past weeks on concern a Greek-debt default could spread to other indebted nations in the 17-member bloc.  The Euro has reversed some its losses after Germany’s Merkel retreated from earlier demands that private bondholders be forced to shoulder a “substantial” share of a Greek rescue, saying she’ll work with the European Central Bank to avoid disrupting markets.  Greek bonds rallied and European stocks gained after the joint statement helped alleviate concern of the euro area’s first sovereign default.  However, aid for Greece is dependent on the Greek parliament passing additional austerity measures, which until passed, will limit the upside for the common currency.  Therefore expect attention to shift to Athens where Prime Minister George Papandreou struggles to gain parliamentary approval for a 78 billion euro five-year package of budget cuts and asset sales by July.

The Japanese yen fell against all of its currency pairs, except the U.S. dollar, as global equities tipped higher in the wake of an agreement on the Greek debt crisis.  The USD/JPY exchange rate has struggled to find a definitive direction over the past weeks as the pair continues to ebb and flow with the prevailing risk sentiment.  Indeed, the Japanese yen has maintained a 1.0% range over the past two weeks. 

The British pound rose against the U.S. dollar, but fell against the Euro, on general increased risk appetite.  However, the pound was unable to push considerably higher versus the U.S. dollar as data this week showed “shaky” growth prospects for the U.K.  Indeed, data earlier the week showed retail sales slid more than forecast in May while jobless-benefit claims surged.  Meanwhile, Bank of England Governor Meryvn King reiterated that officials should continue to hold interest rates at record low because of weak growth in wages and the above-target inflation will prove temporary. 

US$ Continues Rally on Greek Debt Concerns

The U.S. dollar extended yesterday’s rally versus most of its counterparts as world equity indexes dropped on continued worries over the European debt crisis and poor global economic data.  Indeed, the greenback pushed to a three-week high against the Euro on speculation the Greek debt problem is deteriorating, dampening demand for the Euro-region’s assets.  The dollar also soared against the commodity-based currencies, namely the New Zealand dollar after Finance Minister Bill English said the currency’s strength was hurting the economy.  Meanwhile, the U.S. economic docket showed that fewer Americans than forecast filed application for unemployment benefits last week, indicating the pick up in firings that began in April may be abating.  Also, housing starts in the U.S. increased more than forecast in May.  Work began on 560K homes at an annual pace, up 3.5% from the prior month.  The strong data has slightly improved the prevailing risk sentiment, causing the dollar to push modestly lower in early trading.

The Euro fell for a second day to the lowest level of the month against the U.S. dollar as the Greek debt crisis continues to dominate trading.  Greek Prime Minister George Papandreou will reshuffle his cabinet and seek to win a confidence vote today after attempts to garner opposition support for an austerity plan failed.  Police fired tear gas as thousands of demonstrators encircled the Parliament House in Athens yesterday to protest wage cuts and tax increases. The Euro stayed lowered after European Central Bank Governing Council member Nout Wellink said the emergency fund for euro-area countries needs to be boosted if private investors are pressured to contribute to additional aid for Greece.  German Chancellor Angela Merkel and France President Nicolas Sarkozy will meet tomorrow in Berlin, with pressure increasing for the leaders to reach an accord on a rescue package for Greece.  In addition, European finance ministers agreed to convene again on June 19^th after they failed to reconcile a German-led push for bondholders to shoulder part of the cost of a new plan for Greek aid. 

The Japanese yen gained against all of its counterparts, including the U.S. dollar, as falling risk appetite boosted the safe-haven currency.  Indeed, European and Asian stocks tumbled as rioting against planned austerity measures threatened Greece’s government and the global economic recovery.  With U.S. equity futures pointed towards a lower open, the Japanese yen could continue to push higher during our trading session. 

The British pound weakened against the U.S. dollar after data showed U.K. retail sales slumped more than economists forecast, adding further weight to calls for the Bank of England to keep interest rates on hold.  Retail sales fell 1.4% from April, the Office for National Statistics said, as sentiment was hurt by the government’s budget squeeze.  The drop exceeded expectations for a 0.6% drop.  Governor Mervyn King yesterday said officials should hold rates at a record low because weak growth in wages signals the current above-target inflation will prove temporary. 

US$ Rallies Versus Euro on Increased Greek Worries

The U.S. dollar soared against all of its major rivals as global stocks plunged as the European Union struggled to find a solution for a second Greek rescue.  Indeed, an emergency session of euro finance chiefs in Brussels failed to break a deadlock on how to involve private investors in a second bailout without triggering a default, casting doubt on funds due from the International Monetary Fund next month.  The greenback rallied against all of its counterparts, but the Australian dollar was able to erase its losses after Reserve Bank of Australia Governor Glenn Stevens signaled inflation figures next month may be essential to the timing of an interest rate increase, boosting bets that borrowing costs will advance.  Meanwhile, the economic docket showed that MBA mortgage application rose by 13.0%, up from –0.4% last month.  Also, the cost of living in the U.S. rose more than forecast in May as raw-material expenses are filtering through to other goods and services.  The consumer-price index increased 0.2%, compared with the 0.1% median forecast.  The so-called core measure, which excludes more volatile food and energy costs, climbed 0.3%, the biggest increase since July 2008.  A different report showed that manufacturing in the New York region unexpectedly shrank in June.            Later this morning, Industrial Production in the world’s largest economy is expected to rise to 0.2%, from a flat reading the month prior.

The Euro fell to its lowest level of the month as the European Union continues to fail to break a deadlock on a second bailout of Greece and demonstrations threatened Prime Minister George Papandreou’s majority.  In Athens, Greek police used tear gas to disperse demonstrators around the Parliament as 20,000 people rallied against additional wage cuts and tax increases as lawmakers debated budget cuts and asset sales that are conditions of the aid.  Ports, banks, hospitals and state-run companies were paralyzed by strikes, while a Papandreou supporter said he won’t support the austerity measures and another bolted his Socialist Party.  Pressure to craft a rescue plan and avoid the first euro area default intensified earlier this week after S&P slapped Greece with the world’s lowest credit rating and the European Central Bank and Germany continue to clash over easing Greece’s debt load.  At 143% of gross domestic product, it is the highest in Europe.

The Japanese yen rose against its higher-yielding counterparts, but fell versus the U.S. dollar, as falling risk appetite boosted demand for the pair of safe-haven currencies.  Meanwhile, Eisuke Sakakibara, formerly Japan’s top currency official, said the yen may strengthen versus the U.S. dollar in the future as the U.S. faces a possible credit rating downgrade amid an economic slowdown.  He also said that Japan is unlikely to again intervene in the currency market to stop the yen’s climb because it may not be able to gain international cooperation again. 

The British pound slumped versus the U.S. dollar after a report showed U.K. jobless claims surged more than economists estimated in May and wage growth slowed, damaging the case for the Bank of England to raise interest rates.  The Office for National Statistics said jobless-benefit claims jumped 19,600, up from an expected 6,500.  Wage growth excluding bonuses slowed to 2.0% in the three months through April, the weakest since the second quarter of 2010.  However, U.K. consumer confidence jumped the most in 5 ½ years in May as Britons became less pessimistic about spending and the extra public holiday for the royal wedding led to a “feel-good factor,” Nationwide Building Society reported today.