Week of June 12, 2011 thru June 18, 2011

FXWRAP: Dollar Slips As Euro Lifts On Greek Rescue Hopes

By Dennis Pettit

NEW YORK, June 17 (MNI) - The dollar Friday held about unchanged
vs. the euro while it slipped slightly vs. the yen, with the greenback
able to halt an overnight dip that reflected an uptick in expectations
that some kind of Greek rescue deal may be cobbled together over the

Euro-dollar changed hands at $1.4290 in muted afternoon dealings
Friday, and the euro was not far removed from its early $1.4276 level of
the session after traversing a $1.4250/1.4340 range during U.S. hours.

US Economist Raises Concerns Over Long-Term Unemployment

By Robert Gavora

WASHINGTON (MNI) - America's long-term unemployment rate is growing
at an unhealthy pace, and measures must be taken in the immediate future
to prevent the number of long-term unemployed from reaching an all-time
high, economist Valerie Wilson said Friday.

"The most recent recession which we are still recovering from has
yielded the highest number of long-term unemployed in U.S. history,"
Wilson, an economist at the National Urban League Policy Institute, said
at a briefing on Capitol Hill.

US Budget Recap: Key Questions Remain As Biden Talks Intensify

--Vice President Holds 3 Rounds of Talks This Week, Maybe 4 Next Week
--Biden Group Pushes For Agreement By End of June, But Deadline Not Hard
--Senate Budget Committee Chair Concerned Biden Deal Won't Do Enough
--Senate's Gang of Six Continues To Work For Broader Plan

By John Shaw

WASHINGTON (MNI) - As the budget talks led by Vice President Joe
Biden move into an intense phase, a raft of profound and deeply
consequential questions remain to be answered.

Will the Biden-led talks yield a bipartisan agreement? If so, when?

EMTA Survey Txt: 1Q Emerg Mkt Debt Trade Vol $1.74T,-7% vs 4Q

NEW YORK (MNI) - The following was issued Friday by EMTA,
formerly the Emerging Markets Traders Association:

Emerging Markets debt trading volumes stood at US$1.739 trillion in
the first quarter of 2011, according to a report released today by EMTA,
the association for the Emerging Markets debt trading industry. This
represents a 24% increase from first quarter 2010 volume of US$1.402
trillion and a 7% decline from US$1.862 trillion reported in the fourth
quarter of 20101.

Jerome Booth, Head of Research and a member of the Investment

IMF Chief Economist: Chance of US Double Dip 'Very,Very Small'

--US Debt Ceiling Debate 'False Drama' but Fiscal Plan Needed

By Daniel Horch

SAO PAULO (MNI) - The chances of a double dip in the U.S. are
"very, very small," International Monetary Fund chief economist Olivier
Blanchard said Friday.

Blanchard said markets worry about a double dip "whenever growth
slows in the U.S." but business and consumer spending should sustain the
recovery, making the recent slowdown "more of a bump in the road than
something more worrisome."

But it is "clearly a very weak recovery," Blanchard said at a

IMF's Vinals: Hopeful on Greek Solution, Must Assure Financing

--Fund Ready to Help, Greece Must Implement Plan
--Spain Must do 'Whatever It Takes' on Fiscal Steps

By Daniel Horch

SAO PAULO (MNI) - A senior International Monetary Fund official
said Friday he is optimistic agreement to solve the Greek crisis will
be reached, but said full financing must be assured.

"All the parties involved recognize the stakes are very high. I am
very hopeful we will find an agreement that provides a good solution,"
Jose Vinals, director of the IMF Monetary and Capital Markets, said
at a briefing.

Next Wk/US: Little To Distract From FOMC Meeting, Bernanke

By Theresa Sheehan

PRINCETON (SMRA) - The week ahead has a light data calendar, with
little to distract from the upcoming meeting of the Federal Open Market
Committee Tuesday and Wednesday.

Among the economic data, it will be that related to the housing
market that should likely have the most impact.

The FOMC meets on June 21 and 22. The post-meeting statement is
expected at 12:30 ET Wednesday, to be followed by the update to the
Fed's economic forecast at 14:15 ET and Chairman Bernanke's news

US API Text: Year-Over-Year Gasoline Demand Dwn For 2nd Month

WASHINGTON (MNI) - The following text is the summary of the
American Petroleum Institute's monthly report on domestic petroleum
deliveries, gasoline deliveries and crude oil production for May
released Friday:


For the second month in a row, motor gasoline deliveries, a measure
of demand, fell from the prior year. With the exception of May 2009,
gasoline deliveries were at an eight-year low for the month. Gasoline
deliveries, at 9.2 million barrels per day, were down by 0.7 percent
from last year and down by 1.9 percent on a year-to-date basis.

Univ of Mich Prelim June US Cons Sentiment 71.8 Vs 74.3 May

WASHINGTON (MNI) - The preliminary reading of U.S. consumer
sentiment fell in June, and was below expectations, according to the
Reuters/University of Michigan Consumer Sentiment survey released

The index came in at 71.8 -- no where close to median expectations
of 74.5 -- vs. May's final reading of 74.3. The consumer sentiment index
was 69.8 in April and 67.5 in March.

The index's initial reading for consumers' view of current
conditions in June was the lowest since October last year, reported at

IMF WEO: Warns of Greater Downside Risks to Global Economy

--Cites US Weakness, Fears Over EU Fiscal Challenges
--Cuts World, US 2011 Growth Estimates, But Raises EU Forecasts

By Heather Scott

WASHINGTON (MNI) - The global economic recovery has slowed and
downside risks have grown, amid weakness in the U.S. economy and fears
about the fiscal situation in EU members such as Greece, and strong
adjustments will be needed to ensure a return to growth, the
International Monetary Fund warned Friday.

In the quarterly update of the World Economic Outlook, the IMF