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The Irvine Index

IT IS remarkable how the words ''stand up for real action'' morph into ''stand up for re-election'', particularly when delivered in bogan-style sing-song as they are in the Liberal Party ads that hit our screens this week. Try it. Not, presumably, the desired message of an opposition
IT IS remarkable how the words ''stand up for real action'' morph into ''stand up for re-election'', particularly when delivered in bogan-style sing-song as they are in the Liberal Party ads that hit our screens this week. Try it. Not, presumably, the desired message of an opposition
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Dollar Gains Unwound as Volatility ahead of EU Stress Test Keeps Currency within Congestion

• Euro Bull Trend Dependent on how the Market Interprets the Stress Test Results • British Pound Beholden to Risk Trends but 2Q GDP Number Could Leverage Volatility • Canadian Dollar will be Torn Between Risk Trends and Data Friday just as it was Today • New Zealand Dollar
Advances
• Euro Bull Trend Dependent on how the Market Interprets the Stress Test Results • British Pound Beholden to Risk Trends but 2Q GDP Number Could Leverage Volatility • Canadian Dollar will be Torn Between Risk Trends and Data Friday just as it was Today • New Zealand Dollar
Advances
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Home price falls a "near certainty": Grantham

Vote Poll: What's your outlook for median housing prices over the next year? Poll form Please select an answer. Rise of 10% or more Rise of 0-10% Little change Drop of 0-10% Drop of 10% or more View results Rise of 10% or
Vote Poll: What's your outlook for median housing prices over the next year? Poll form Please select an answer. Rise of 10% or more Rise of 0-10% Little change Drop of 0-10% Drop of 10% or more View results Rise of 10% or
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William Pesek | America"s AAA rating is cut in land of bubbles

Moody's Investors Service, Standard & Poor's and Fitch Ratings can't be happy. Last week, the world's credit-rating giants got scooped on the biggest rating decision: whether to strip the US of AAA status. Worse, the US was downgraded by a company that few people have ever heard of,
Moody's Investors Service, Standard & Poor's and Fitch Ratings can't be happy. Last week, the world's credit-rating giants got scooped on the biggest rating decision: whether to strip the US of AAA status. Worse, the US was downgraded by a company that few people have ever heard of,
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Dollar Finally Gains Traction as Sentiment Plunges but Fundamental Catalysts Undermine Advance

• British Pound Tumbles Ahead of Week Loaded with Growth, Interest Rate and Financial Health Updates • Japanese Yen Further Retreats into its Role as the FX Market’s Favored Funding Currency • New Zealand Dollar Suffers its Biggest Drop Since October as Inflation Data
Accelerates
• British Pound Tumbles Ahead of Week Loaded with Growth, Interest Rate and Financial Health Updates • Japanese Yen Further Retreats into its Role as the FX Market’s Favored Funding Currency • New Zealand Dollar Suffers its Biggest Drop Since October as Inflation Data
Accelerates
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Dollar Drops to a Two-Month Low as Risk Appetite Rises, Data Disappoints and China Downgrades

• Euro Climbs as a Successful Greek Bond Auction Counteracts Portugal Downgrade • British Pound Reverses Monday’s Losses as Inflation Data, BoE Chatter Revive Rate Speculation • Japanese Yen Drops as Carry Interest Grows, The National Pension Fund Sells JGBs • New Zeal
and Dollar
• Euro Climbs as a Successful Greek Bond Auction Counteracts Portugal Downgrade • British Pound Reverses Monday’s Losses as Inflation Data, BoE Chatter Revive Rate Speculation • Japanese Yen Drops as Carry Interest Grows, The National Pension Fund Sells JGBs • New Zeal
and Dollar
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Japanese Yen Poised to Weaken Ahead of the BoJ Rate Decision

Fundamental Forecast for the Japanese Yen: Bearish - Dollar and Yen Rise on Risk Aversion but Swiss Franc Outperforms - U.S. Dollar, Japanese Yen Rise as Stocks Drop on China Growth Fears The Japanese yen has pushed lower against the U.S. dollar last week, finishing as the
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German Factory Orders Disappoints in May

Fundamental Headlines • Dollar Gains on Weak ISM Data – Wall Street Journal • Growth Concerns Hit European Stocks – Wall Street Journal • OECD Warns on Long-Term Jobless  - Financial Times • China Central Bank Aims to Tighten Liquidity Even as Economic G
rowth Cools -
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Japanese Yen Trend Points to Slowdown in Gains

Fundamental Forecast for the Japanese Yen: Neutral - Dollar and Yen Rise on Risk Aversion but Swiss Franc Outperforms - U.S. Dollar, Japanese Yen Rise as Stocks Drop on China Growth Fears The Japanese yen rallied against the U.S. dollar this week, finishing as the second best
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Euro-Zone Unemployment Rate Remains at a 10-Year High

Fundamental Headlines • EU’s “Opposite Twins” Clash Over Future – Wall Street Journal • China Revises Up 2009 Growth – Wall Street Journal • Fears Mount Over Slowing Global Demand - Financial Times • Payrolls in U.S. Probably Dropped in June as Gov
ernment Cut Census
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Dollar’s Strength Most Prominent against a Weak Euro as Spending Rises, Activity Dulls

• Euro Falters as Inflation Cools, Greek Debt Sold and European Bank Loans Come Due • British Pound Charges ahead after BoE Member Raises the Call for Rate Hikes • New Zealand Dollar Advance Rebuffed Yet Again following Drop in Business Confidence • Japanese Yen Offe
rs Mixed
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Dollar Finds No Comfort in Durable Goods Data or a Sharp Drop in Equities

• Euro Contradicts Risk Trends and Ignores Financial Troubles for Second Consecutive Advance • British Pound Unable to Overtake 1.50 against Dollar on Cautionary BoE Financial Report • Japanese Yen Enjoys Risk Aversion from a Funding Perspective, Deflation Eases • New Zealan
d Dollar
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Crude Traders Abstain from a Drop in Sentiment as US Data Tops a Slow Day for Event Risk

North American Commodity Update Commodities - Energy Crude Traders Abstain from a Drop in Sentiment as US Data Tops a Slow Day for Event Risk Crude Oil (LS NYMEX) -  $76.21  //  -$0.14   //  -0.18% With a downshift in fundamental activity between Wednesday and Thu
rsday;
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Euro-Zone Industrial New Orders in April Advances for a Third Straight Month

Fundamental Headlines • FED Turns More Wary – Wall Street Journal • Investors Turn to Dollar  – Wall Street Journal • Canada Invites 10 Developing Countries to G8 Summit - Financial Times • European Stocks Drop, Led by Greece; U.S. Futures Slip as Yen S
trengthens  -
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Aussie, NZ dollars drift lower as risk rally fades

* Drop in Asian stocks adds to downward pressure * Eyes on Fed, could add to risk-off strategy SYDNEY/WELLINGTON, June 23 (Reuters) - The Australian and New Zealand dollars were on the defensive on Wednesday, as the optimism generated by China's new flexible currency regime faded and
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Chancellor of the Exchequer Osborne Confirms U.K. Will Not Join the Euro, Pledges to Cut Deficit

Fundamental Headlines • Spending Fight at G-20 – Wall Street Journal • Euro Trims Early Losses  – Wall Street Journal • Osborne Tax Shift to Soften Budget  - Financial Times • Cameron Bets on Prosperity From Austerity While Obama Pushes More Stimulus 
- Bloomberg •
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Dollar Recovers from Flash Surge in Investor Sentiment following China’s Dropping its Fixed Regime

• Euro’s Take on Unpegged Yuan Mixed, ECB Increases Government Bond Purchases • Canadian Dollar Tumbles after BoC’s Warnings, Traders Look Ahead to CPI Numbers • Japanese Yen Split between Sentiment and Fundamental Implications of China’s Step towards a Float Dol
lar Recovers
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Crude Squanders Early Rally on News China Had Dropped its Peg

North American Commodity Update Commodities - Energy Crude Squanders Early Rally on News China Had Dropped its Peg Crude Oil (LS NYMEX) - $77.32 // $0.14 // 0.18% The big news on the morning – that China had ended a two-year stint fixed rate regime – would
not
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Dollar Tumbles Stalls as Speculative Advance Sidelined by Building Fundamental Resistance

• Euro Traders Take Note of Spain Now as Speculation of a Request for Financial Support Builds • British Pound Surprisingly Stable Through a Drop in Confidence and Unemployment • Swiss Franc: What to Expect from Thursday’s SNB Rate Decision • Australian Dollar:
Growth and
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