Hey Traders,

another huge FX day, with “King” Dollar setting some major lows, here is % of average range summary:
GCQ09    194.4
SFU09    186.0
DXU09    167.6
ECU09    157.4
BPU09    152.3
JYU09    127.3
ADU09    105.8
YMU09    89.0
TFU09    81.1
ESU09    72.6
CDU09    71.2
NQU09    67.5
Another crazy week, with most important thing to take away from a week like this is that market momentum (or whatever else gets credited/blamed) is more important than news, earnings, econ data and even dollar strength. When the market goes up and funds have to chase performance at the same time squeezing out the most stubborn bears, nothing matters.

While there are signs of rally exhaustion, bears got many technical levels to break to have a chance at getting anything going to the downside.

The fact that Markets didnt react to extreme dollar weakness add to hopes of the bears, these last two candles are surely promising as well, gap down monday would be ideal:

Will have a monthly analysis edition ready this weekend, some interesting developments along all time frames.

Get some rest and get ready to take on these crazy markets again

Cheers

Vlad

———

p.s.

if you appreciate what you find here, feel free to spread the word, follow me on twitter @esecfutures, retweet my updates once in a while and or link to this blog from yours.

ES_F key support 956-957s , bottom of 8day channel and major S/r level on daily & hourly $$

http://www.reuters.com/article/usDollarRpt/idUSLAG00356720090701

July 1 (Reuters) - China has asked to debate proposals for a new global reserve currency at next week’s Group of Eight summit in Italy and the issue could be referred to briefly in the summit statement, G8 sources said on Wednesday.

One G8 source who was involved in the negotiations said China made the request during preparatory talks about a joint statement to be issued on the second day of the summit in L’Aquila by the G8 plus the G5 (Brazil, India, China, Mexico and South Africa) and also Egypt.

This forum, the so-called “G14″, meets on July 9 to discuss the financial crisis, trade and climate change and for the first time a G8 summit will also produce a joint G14 statement.

A European source with knowledge of preparations for the summit also said China had raised the subject of a reserve currency debate and that it might be mentioned during the meeting, though the source added: “Any country at the meeting can raise issues they see fit.”

“But whether there is a specific mention in the communique remains open,” said the European source, adding that sherpas would discuss this further in preparatory talks on Friday.

The debate centres on proposals by some emerging powers that an alternative should be found to the U.S. dollar as the global reserve currency, to reflect the shifting balance of power in the globalised economy.

China’s central bank governor said in March the world should consider using the International Monetary Fund’s Special Drawing Rights (SDRs) as a super-sovereign currency. The SDR is an international reserve asset allocated to IMF members and its exchange rate is determined by a basket of dollars, euros, sterling and yen.

But the Chinese proposal failed to gain ground after several world leaders, and officials from the IMF, backed the dollar as the global reserve currency. (Reporting by Reuters bureaux)

Zero Hedge: Denis Lets Zero Have it

First, I have respect for Dennis - he lays out his beliefs (regardless if these beliefs are based on completely flawed foundations or not) and defends them, on prime time TV, in a “financial news” medium whose very existence every viewer realizes is contingent on not only the continued viability of massively bad debt-laden GE (due to its inextricable ties with GE Capital, which lent out more toxic second liens than virtually any other entity), but by implication, the well-being of the overall economy, as well as the continued financial support by PIMCO and other financial company sponsors who have explicit and implicit ties with the current administration, and who profit exclusively from a rising market. In retrospect, one can see where Dennis’ viewers may get confused by the blurry line between a hopelessly severe conflict of interest and honest personal opinion……………………………..

Denninger (Market Ticker): To Dennis Kneale: You’re An Idiot

Since Dennis saw fit this evening on CNBC to “go after” bloggers who in turn had gone after him, yet he omitted The Market Ticker, I’ll go ahead and put a full-on dredge out behind my stern and slow to 3kts.

And Dennis, if you would like me on your show, I’ll be happy to appear.  Phone is fine.  And I’m not anonymous, nor do I want to be - CNBC already has has my full bio, my full name, and my CNBC-standard disclosure document back with a digital signature affixed.  You can also “whois” this domain and get my full name and address.  Good enough?  Several employees of NBC Universal are on my forum and a CNBC producer has my direct email address - just ask around and I’m sure you can obtain it, and if you do email me I’ll be happy to call you at your convenience………..

Via Reuters

YEKATERINBURG, Russia, June 16 (Reuters) - Russian President Dmitry Medvedev said on Tuesday the world needed new reserve currencies.

“We have to consolidate the international monetary system, not only through the consolidation of the dollar but the creation of new reserve currencies,” Medvedev said at a summit of the Shanghai Cooperation Organisation (SCO) in the Urals city of Yekaterinburg. (Reporting by Conor Sweeney, editing by Guy Faulconbridge)

Update 3:33am EST:

AP: Kremlin adviser: Russia may put part of its currency reserves in bonds of China, Brazil, India

.

Source: Chart of The Day

The decline in crude oil prices that began in mid-2008 was historic, plunging over $90 per barrel in just eight months. Over the past four months, however, crude oil prices have spiked up nearly $30 per barrel. Today’s chart provides some perspective on the historic decline and recent spike with a long-term view of inflation-adjusted West Texas Intermediate Crude. Today’s chart illustrates that most oil price spikes were a result of Middle East crises and often preceded or coincided with a US recession. It is also interesting to note that the recent spike in oil prices has brought the price of oil back to a relatively high level, a level that was surpassed only during the major price spikes of 1979-1982 and 2005-2008.

Who would have thought….

The Federal Reserve Bank of New York shaped Washington’s response to the financial crisis late last year, which buoyed Goldman Sachs Group Inc. and other Wall Street firms. Goldman received speedy approval to become a bank holding company in September and a $10 billion capital injection soon after.

During that time, the New York Fed’s chairman, Stephen Friedman, sat on Goldman’s board and had a large holding in Goldman stock, which because of Goldman’s new status as a bank holding company was a violation of Federal Reserve policy.

Source http://online.wsj.com/article/SB124139546243981801.html#mod=rss_whats_news_us_business

SAN FRANCISCO (MarketWatch) — Four banks in Georgia, Michigan, California and Idaho were closed by regulators Friday, costing the Federal Deposit Insurance Corp.’s deposit insurance fund nearly $700 million as the effects of the credit crisis continued rippling throughout the U.S. economy. Kennesaw, Ga.-based American Southern Bank marked the 26th bank failure of the year and the fifth in the state of Georgia, the FDIC said. Farmington Hills, Mich.-based Michigan Heritage Bank then became the 27th failure of 2009, followed by the closure of Calabasas, Ca.-based First Bank of Beverly Hills. Alpharetta, Ga.-based Bank of North Georgia has agreed to assume American Southern Bank’s deposits, the FDIC said in a statement. American Southern’s one office will reopen as a branch of Bank of North Georgia on Monday. American Southern had roughly $112.3 million in assets and $104.3 million in deposits as of March 30, according to the FDIC. Bank of North Georgia has also agreed to buy roughly $31.3 million of the failed bank’s assets, the FDIC said. The FDIC estimated the cost of American Southern’s failure to its deposit insurance fund will be $41.9 million. American Southern’s collapse marks the 51st bank failure since the credit crisis began last year. During that time, an inordinate amount of the total bank failures have occurred in Georgia. The last bank to fail in Georgia was Atlanta-based Omni National Bank on March 29, the FDIC said. The failure of First Bank of Beverly Hills is also only the latest in a string of California bank closures. The FDIC said it marks the fourth failure in that state this year, with County Bank, of Merced, being the most recent California closure, on Feb. 6.
The FDIC said, “an assuming institution could not be located” for First Bank of Beverly Hills’ deposits and assets, and said it will mail checks to insured depositors on Monday. First Bank of Beverly Hills had $1.5 billion in assets as of Dec. 31, the FDIC said, and $1 billion in deposits. The FDIC estimated the bank had $179,000 in uninsured deposits, and that its failure will cost the FDIC’s deposit insurance fund $394 million.
Michigan Heritage Bank is the first in that state to be closed this year. The bank had $184.6 million in total assets as of Dec. 31, and $151.7 million in deposits, according to the FDIC. Farmington Hills-based Level One Bank has agreed to assume Michigan Heritage Bank’s deposits, and on Monday Michigan Heritage’s three offices will reopen as branches of Level One Bank, the FDIC said. Level One has agreed to buy roughly $46.1 million of the failed bank’s assets, the FDIC said. The FDIC estimated the cost of Michigan Heritage Bank’s failure to its deposit insurance fund will be $71.3 million. Ketchum, Idaho-based First Bank of Idaho also became the first bank closure for that state this year, and the 29th in the U.S. this year- it was the first failure in Idaho since 1988, the FDIC said. Minneapolis-based U.S. Bank (USB:US Bancorp) has assumed First Bank of Idaho’s deposits, the FDIC said. First Bank of Idaho had $374 million in deposits and $488.9 million in assets as of Dec. 31.
The FDIC estimated the closure of First Bank of Idaho will cost its deposit insurance fund $191.2 million.

Source: Marketwatch