Japan offered the solitary piece of news-worthy data overnight as the preliminary reading of May’s Leading Index disappointed to the downside, printing at 92.6% versus the expected 93%. Economists expect deteriorating demand in the US to bring substantial slowdown to Japan’s export sector and the entire economy by extension. Similar developments are already unfolding in Europe, casting increasing doubt that the world economy will be able to de-couple from the US to continue expanding while the ailing super-power struggles to regain its footing. Interestingly enough, a global slowdown scenario may actually prove beneficial to the US dollar.

The jobs number for the month of June was bad but not bad enough to stifle the gains in the US dollar. Non-farm payrolls fell by 62k, the sixth consecutive decline in a row.  The April number also was revised down from -49k to -62k while the unemployment rate remained at 5.5%, matching the highest level since October 2004.