Not a lot of change in Asia, with the USD still out of favour. EUR/USD sits at 1.4135, pretty much where it closed out in North America Friday, while GBP/USD is maginally firmer, presently at 1.6210 from around 1.6170.
The USD continues to be weighed down by concerns over the US’s burgeoning budget deficit and it’s funding , and by improving risk sentiment.
U.S. Treasury Secretary Geithner has been busy trying to appease the Chinese, telling them that the U.S. wants to shrink the budget gap as soon as recovery takes hold.
Risk appetite remains strong. Good news out of China. May PMI came in at 53.1. China’s manufacturing has now expanded for the third month in a row, adding to evidence that the country’s economy is slowly recovering. A read over 50 indicates an expansion.
Also good news out of India. India’s manufacturing PMI rose to 55.7 in May from 53.3 in April, the highest read in 8 months.
GM filing for bankruptcy today isn’t really having a decernible impact on forex markets.
Meanwhile China is ratcheting up pressure on North Korea, suspending government exchanges.
