{"id":10311,"date":"2010-06-16T16:33:47","date_gmt":"2010-06-16T20:33:47","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=10311"},"modified":"2010-06-16T16:33:47","modified_gmt":"2010-06-16T20:33:47","slug":"forex-daily-market-commentary-77","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/06\/16\/forex-daily-market-commentary-77\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

By GCI Forex Research<\/strong><\/p>\n

Fundamental Outlook at 1400 GMT (EDT + 0400)<\/strong><\/p>\n

\u20ac<\/strong><\/p>\n

The euro depreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.2255 level and was capped around the $1.2350 level.\u00a0 The common currency moved off of intraday lows during the North American session as U.S. equities reversed course and most of their intraday losses evaporated.\u00a0 European Central Bank member Quaden said the eurozone is unlikely to encounter a double-dip recession while Bank of Israel Governor Fischer suggested some countries may not remain in the eurozone.\u00a0 The Spanish government denied rumours that Spain requires assistance with external finance.\u00a0 ECB member Gonzalez-Paramo called for a revival of the securitization market in the eurozone and ECB member Ordonez said bank restructuring will be complete before summer.\u00a0 The ECB again failed to get any bids in a seven-day U.S. dollar term auction, the third consecutive time this has happened, and this underscores the comparative attractiveness of swap deals.\u00a0 The European Union today called on countries to reduce their deficits, adding a \u201ccold shower\u201d consolidation plan may be required in some instances.\u00a0 ECB member Noyer called for more exchange rate flexibility and Germany\u2019s Bundesbank reported banks\u2019 capital requirements are likely to increase significantly.\u00a0 Data released in the eurozone today saw May EMU-16 consumer price inflation increase 0.1% m\/m and 1.6% y\/y at the headline level and 0.8% y\/y at the core level.\u00a0 The ECB will publish its June monthly report tomorrow.\u00a0\u00a0 In U.S. news, data released today saw MBA mortgage applications climb 17.7% while May housing starts were off 10.0% to an annualized 593,000 units and building permits were off 5.9% m\/m to an annualized 574,000 units.\u00a0 Also, May headline producer price inflation was off 0.3% m\/m and 5.3% y\/y and the ex-food-and-energy component was up 0.2% m\/m and 1.3% y\/y.\u00a0 Additonally, May industrial production was up 1.2% with capacity utilization stronger at 74.7%.\u00a0 May consumer price inflation data will be released tomorrow.\u00a0 There is speculation that Fed officials may reduce their forecasts for U.S. economic growth on account of European economic woes when policymakers convene next week.\u00a0 In April, Fed officials estimated the economy would expand between 3.2% and 3.7% in 2010.\u00a0 Euro offers are cited around the US$ 1.2460 level.<\/p>\n

\u00a5\/ CNY<\/strong><\/p>\n

The yen appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested bids around the \u00a591.10 level and was capped around the \u00a591.80 level.\u00a0 Bank of Japan kept its economic assessment unchanged overnight after improving its assessment in May following better capital spending and foreign trade.\u00a0 The central bank reported Japan\u2019s economy is evidencing a \u201cmoderate economy\u201d and said the \u201cdegree of severity has eased somewhat\u201d in employment and income conditions.\u00a0 The yen\u2019s gains today were largely precipitated by renewed concerns over Europe\u2019s sovereign debt struggles. Yesterday, BoJ unveiled details regarding a \u00a53 trillion lending program to stimulate the economy and counter deflation.\u00a0 Data released in Japan overnight saw the April tertiary industry index improve to +2.1% from the revised prior reading of -2.7% while May machine tool orders were up 192.5% y\/y.\u00a0 The Nikkei 225 stock index climbed 1.81% to close at \u00a5179.26.\u00a0 The euro moved lower vis-\u00e0-vis the yen as the single currency tested offers around the \u00a5111.70 level and was capped around the \u00a5113.30 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5134.50 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a581.30 level. In Chinese news, the U.S. dollar appreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8334 in the over-the-counter market, up from CNY 6.8333.\u00a0 It is being reported that China\u2019s holdings of U.S. assets may now be at or near all-time highs.<\/p>\n

\u00a3<\/strong><\/p>\n

The British pound depreciated vis-\u00e0-vis the U.S. dollar today as cable tested bids around the US$ 1.4745 level and was capped around the US$ 1.4830 level.\u00a0 New U.K. Chancellor of the Exchequer Osborne announced Bank of England will obtain new powers to prevent financial crisis and reduce credit risk.\u00a0 Osborne\u2019s first \u201cMansion House\u201d speech is scheduled for tonight and more information about the U.K. economy may be forthcoming.\u00a0 Osborne is expected to give the BoE more responsibility for macro prudential supervision.\u00a0 Former BoE Chief Economist Vickers will lead a new panel to review the U.K. banking sector.\u00a0 Data released in the U.K. today saw the May claimant count rate decline to 4.6% as the jobless claims were off 30,900.\u00a0 The April ILO unemployment rate ticked lower to 7.9%.\u00a0 The euro came off vis-\u00e0-vis the British pound as the single currency tested bids around the \u00a30.8285 level and was capped around the \u00a30.8335 level.<\/p>\n

CHF<\/strong><\/p>\n

The Swiss franc appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested bids around the CHF 1.1275 level and was capped around the CHF 1.1340 level.\u00a0 Swiss national bank will released its interest rate decision tomorrow and is expected to keep its three-month Swiss franc Libor target rate at 0.25%.\u00a0 Data released today saw the June ZEW survey decline sharply to 17.5 from 40.5 and data to be released tomorrow include Q1 industrial production.\u00a0 U.S. dollar offers are cited around the CHF 1.1470 level.\u00a0 The euro came off vis-\u00e0-vis the Swiss franc as the single currency tested bids around the CHF 1.3870 level while the British pound moved lower vis-\u00e0-vis the Swiss franc and tested bids around the CHF 1.6685 level.<\/p>\n

Forex Daily Market Commentary<\/strong><\/em> provided by<\/em><\/strong> GCI Financial Ltd<\/strong><\/a>.<\/strong><\/p>\n

GCI Financial Ltd (\u201dGCI\u201d) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (\u201dForex\u201d) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (\u201dCFDs\u201d) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.<\/p>\n

DISCLAIMER: GCI\u2019s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n","protected":false},"excerpt":{"rendered":"

The central bank reported Japan\u2019s economy is evidencing a \u201cmoderate economy\u201d and said the \u201cdegree of severity has eased somewhat\u201d in employment and income conditions…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-10311","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=10311"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10311\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=10311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=10311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=10311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}