Mexican soap opera star Grettell Valdezlingerie spread for Hombre magazine

Dollar and Yen Rally on Growth Concerns
* The dollar and yen rose on Wednesday while risk assets fell. Tuesday’s dovish Fed outlook on the US economy and slowing Chinese economic growth pressured the risk prone currencies and asset prices. China showed further signs of an economic slowdown as industrial production and retail sales slackened. The June US trade deficit widened to the highest level since October 2008; therefore, possibly reducing Q2 2010 US GDP growth. The S&P 500 plunged 31.59 to 1,089.47. The dollar index surged to 82.35 and broke the important diagonal resistance in the 82 area; thus, indicating further medium-term gains are likely. The USD/JPY tested the November 27 low before paring some losses. The EUR/USD plunged and broke the 1.29-area support. The Australian and Canadian dollars were pressured by falling commodity prices. The AUD/USD dropped below its 0.90 support and the USD/CAD rose to the highest level in two weeks.

* The GBP/USD fell on concern about global economic growth and a Bank of England downgrade of the UK economy. The BOE said inflation will be about 1.5% at the end of 2012, below its 2.0% target, and cut its UK GDP growth forecast to a 3.0% annual pace instead of the 3.6% rate forecast in May. The news increased speculation the central bank will expand its quantitative easing measures. The GBP/USD fell for a third consecutive day following its failure to break the 1.60 resistance. Supports are in the 1.56 area and from the uptrend line. If the uptrend is broken, the GBP/USD outlook will deteriorate further. Resistances are in the 1.58 and 1.60 areas.
US & Canada

* The US trade deficit in goods and services unexpectedly widened to $49.9 billion in June, the highest level since October 2008, from a revised $42.0 billion shortfall in May (vs. previously reported -$42.3 billion), data from the Commerce Department showed. The $7.9 billion deficit widening was the most since records began in 1992. Imports rose 3.0% m/m to $200.3 billion in June, led by telecommunications equipment, automobiles and record consumer goods. Exports declined 1.3% m/m, the most since April 2009, to $150.5 billion, led by widespread losses for semiconductors, computers and fuel oil.