{"id":10345,"date":"2010-06-17T14:24:22","date_gmt":"2010-06-17T18:24:22","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=10345"},"modified":"2010-06-17T14:24:22","modified_gmt":"2010-06-17T18:24:22","slug":"forex-daily-market-commentary-78","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/06\/17\/forex-daily-market-commentary-78\/","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 appreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.2410 level and was supported around the $1.2240 level.\u00a0 The common currency continued its ascent and reached its highest level since 28 May as dealers reacted positively to a successful \u20ac3 billion Spanish bond auction and news that Bank of Spain will publish the details of the stress tests on its banks and banking system.\u00a0 European Union officials will convene in Brussels to discuss economic issues and the Stability and Growth Pact.\u00a0 There is an initiative among some European leaders to publish the stress tests on all European banks.\u00a0 The European Central Bank released its June monthly bulletin today and it was nearly identical to remarks made by ECB President Trichet last week after the ECB kept its main refinancing rate unchanged at 1.0%.\u00a0 The EU and the International Monetary Fund reported Greece is making good progress to reduce its deficit pursuant to its \u20ac110 billion rescue package.\u00a0 The EU will also seek a global transaction tax.\u00a0 Germany\u2019s Kiel Institute today predicted the ECB will hike rates in Q4 2011.\u00a0 Data released in the eurozone today saw April construction output decline 0.3% m\/m and fall 6.1% y\/y.\u00a0 In U.S. news, data released today saw May headline consumer price inflation off 0.2% m\/m and up 2.0% y\/y while the ex-food and energy component was up 0.1% m\/m and 0.9% y\/y.\u00a0 These data reflect the fact that core inflation remains very tame.\u00a0 Other data saw weekly initial jobless claims climb to 472,000 from 460,000 while continuing jobless claims increased to 4.571 million.\u00a0 Other data saw the June Philadelphia Fed index decline to 8.0 from 21.4 and May leading indicators improved to 0.4% from 0.0%.\u00a0 Finally, the Q1 current account balance worsened to \u2013US$ 109.0 billion from the revised previous level of \u2013US$ 100.9 billion.\u00a0 U.S. legislators are seeking to force the Fed to make greater disclosures.\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 \u00a590.95 level and was capped around the \u00a591.45 level.\u00a0 A Reuters survey is noting Japanese manufacturers are the most optimistic they have been in a couple of years and this could preface an improvement in next month\u2019s Bank of Japan Tankan survey.\u00a0 Japanese household assets are now at their highest level in nearly two years and Japanese companies are sitting on a record amount of cash totaling about \u00a5202.7 trillion.\u00a0 Households\u2019 financial assets surged 3.1% y\/y to \u00a51.453 trillion and these data evidence the degree to which companies and consumer are hoarding cash.\u00a0 Moreover, the household data reflect the significant deflation problem in Japan where final private demand remains anemic.\u00a0 Yesterday, Bank of Japan kept its economic assessment unchanged after improving its assessment in May following better capital spending and foreign trade. Other data released overnight saw the April leading index remain steady at 101.7 while the April coincident index fell to 101.3.\u00a0 Minutes from the BoJ May Policy Board meeting will be released tonight. The Nikkei 225 stock index lost 0.67% to close at \u00a59,999.40.\u00a0 The euro moved higher vis-\u00e0-vis the yen as the single currency tested offers around the \u00a5113.15 level and was supported around the \u00a5111.65 level.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling tested offers around the \u00a5135.45 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a582.05 level. In Chinese news, the U.S. dollar depreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8291 in the over-the-counter market, down from CNY 6.8334.\u00a0 People\u2019s Bank of China sold one-year bills at an unchanged yield overnight for the first time in nearly three weeks and this is a signal from the central bank they are not contemplating raising rates now.\u00a0 A PBoC survey released overnight indicated a record number of Chinese households have called home prices \u201cunacceptable\u201d on account of dissatisfaction with the level of inflation.\u00a0 PBoC promoted Du Jinfu to be a Vice Governor.<\/p>\n

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

The British pound appreciated vis-\u00e0-vis the U.S. dollar today as cable tested offers around the US$ 1.4835 level and was supported around the US$ 1.4645 level. Data released in the U.K. today saw May headline retail sales climb 0.6% m\/m and 2.2% y\/y while the ex-auto fuel component was up 0.5% m\/m and 3.4% y\/y.\u00a0 Also, June CBI trends total orders worsened to -23 from the previous -18 reading.\u00a0 Chancellor of the Exchequer Osborne spoke last night and said the U.K. government plans to abolish the Financial Services Authority and provide most of its power to the Bank of England.\u00a0 Osborne plans to replace the regulator with three entities over the next two years.\u00a0 Critics have suggested Brussels will still call the shorts and this amounts to little more than re-branding of regulatory duties.\u00a0 Hector Sants is becoming a new Deputy Governor at Bank of England.\u00a0 BoE Governor King indicated he welcomes the central bank\u2019s new responsibilities and indicated policy will be tightened at an appropriate time, noting rates may be lifted before bonds are sold.\u00a0 The April ILO unemployment rate ticked lower to 7.9%.\u00a0 The euro appreciated vis-\u00e0-vis the British pound as the single currency tested offers around the \u00a30.8380 level and was supported 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 1.1110 level and was capped around the CHF 1.1330 level.\u00a0 As expected, Swiss National Bank kept its three-month Swiss franc Libor target rate unchanged at 0.25%. Swiss National Bank Chairman Hildebrand effectively eased its stance on the Swiss franc today, saying the risks of deflation have \u201clargely disappeared.\u201d\u00a0 SNB also warned it cannot keep interest rates at a record low in the medium term without engendering inflation.\u00a0 Traders interpreted these comments as an indication SNB will be less likely to intervene by buying euro for francs.\u00a0 SNB also raised its 2010 economic growth forecast to 2.0% from about 1.5% in March.\u00a0 SNB also sees CPI around 2.2% in 2012 and accelerating to 3.1% in early 2013.\u00a0 Data released in Switzerland today saw Q1 industrial production off 7.8% q\/q and up 5.3% y\/y.\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 1.3755 level while the British pound moved lower vis-\u00e0-vis the Swiss franc and tested bids around the CHF 1.6430 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":"

A Reuters survey is noting Japanese manufacturers are the most optimistic they have been in a couple of years and this could preface an improvement in next month\u2019s Bank of Japan Tankan survey…<\/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-10345","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10345","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=10345"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10345\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=10345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=10345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=10345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}