{"id":10611,"date":"2010-06-28T18:40:25","date_gmt":"2010-06-28T22:40:25","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=10611"},"modified":"2010-06-28T18:40:25","modified_gmt":"2010-06-28T22:40:25","slug":"forex-daily-market-commentary-82","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/06\/28\/forex-daily-market-commentary-82\/","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$ 1.2330 level and was capped around the $1.2395 level.\u00a0 The common currency moved lower as traders were unimpressed with the lack of commitment to reducing global deficits at the Group of Twenty meeting in Toronto this weekend.\u00a0 Spanish and Italian debt declined today on account of the lack of a global agreement on deleveraging global output from massive fiscal spending programs and new debt issuance.\u00a0 G-20 officials reported banks needs to raise capital \u201csignificantly\u201d and added countries will need to phase in new rules by the end of 2012.\u00a0 German Chancellor Merkel said the G-20 announcement \u201cis a success (because) industrialized countries as a group accepted this.\u201d\u00a0 The G-20 noted their \u201cgoal\u201d is to reduce deficits in half by 2013.\u00a0 Bank for International Settlements General Manager Caruana indicated banks\u2019 stress tests may \u201cpoint to the need to take action\u201d and added it will then \u201cbe necessary to take action.\u201d\u00a0 BIS Chairman Noyer noted \u201cThe main task of the public sector is to now design policies that minimize the risks of future financial crisis and promote sustainable growth.\u00a0 In this regard, international cooperation will continue to be essential.\u201d\u00a0 Data released in the eurozone today saw May M3 money supply growth decline 0.2% y\/y.\u00a0 Provisional June consumer price inflation data for several German states moderated while the national June CPI figures came in at +0.1% m\/m and +0.9% y\/y.\u00a0 On a harmonized basis, CPI was was up 0.0% m\/m and 0.8% y\/y.\u00a0 French June consumer confidence data will be released tomorrow.\u00a0\u00a0 In U.S. news, data released today saw the May Chicago Fed national activity index move lower to 0.21.\u00a0 Also, May personal income ticked lower to +0.4% while May personal spending moved higher to +0.2%.\u00a0 Additionally, the May PCE deflator ticked lower to +1.9% and May core PCE was up 0.2% m\/m and 1.3% y\/y.\u00a0 Some traders believe the disinflationary pressures in the U.S. economy could worsen and lead to the Fed \u201cprint money.\u201d\u00a0 The Obama administration\u2019s plan to overhaul financial laws was set back today at least temporarily following the death of Senator Byrd.\u00a0 Euro offers are cited around the US$ 1.2570 level.<\/p>\n

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

The yen depreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested offers around the \u00a589.45 level and was supported around the \u00a589.25 level.\u00a0 Bank of Japan Deputy Governor Nishimura reported global financial regulations need to be overhauled but warned any \u201chasty implementation\u201d may inhibit the \u201cfragile\u201d economic recovery.\u00a0 Nishimura also said the new global regulations need to take into account regional economic differences.\u00a0 Data released in Japan overnight saw May retail trade worsen to -2.0% m\/m and +2.8% y\/y while May large retailers\u2019 sales worsened to 4.0%.\u00a0 Data to be released in Japan overnight include May household spending, the May jobless rate, and May industrial production.\u00a0 Bank of Japan is expected to keep monetary policy very accommodative and will continue to face pressure from the government to ease policy further, possibly through the purchase of additional Japanese government bonds.\u00a0 The Nikkei 225 stock index lost 0.45% to close at \u00a59,693.94.\u00a0 U.S. dollar bids are cited around the \u00a598.45 level.\u00a0\u00a0 The euro moved lower vis-\u00e0-vis the yen as the single currency tested bids around the \u00a5110.15 level and was capped around the \u00a5110.80 level.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling tested offers around the \u00a5134.70 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a582.55 level. In Chinese news, the U.S. dollar appreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.7959 in the over-the-counter market, up from CNY 6.7921.\u00a0 Data released in China overnight saw the May leading index decline to 103.44 from the prior reading of 104.36.\u00a0 Chinese yuan forwards reversed a four-day decline after the U.S. government predicted the yuan would appreciate further.\u00a0 President Obama speculated the yuan is \u201cgoing to go up significantly\u201d at the Group of Twenty meeting this weekend.\u00a0 People\u2019s Bank of China reported it will improve the efficiency and quality of financial information.<\/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$ 1.5015 level and was capped around the US$ 1.5070 level.\u00a0 Data released in the U.K. today saw the June Hometrack housing survey up 0.1% m\/m and 2.1% y\/y.\u00a0 Data to be released tomorrow include May net consumer credit, May net lending secured on dwellings, May mortgage approvals, and May money supply data.\u00a0 Former Bank of England Monetary Policy Committee member Blanchflower warned the U.K. economy could move into a double dip recession given its current budget.\u00a0 Chancellor of the Exchequer Osborne recently reported the government plans to reduce spending significantly, reduce welfare payments, and increase taxes on banks.\u00a0 Cable bids are cited around the US$ 1.4620 level.\u00a0 The euro depreciated vis-\u00e0-vis the British pound as the single currency tested bids around the \u00a30.8185 level and was capped around the \u00a30.8235 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 1.0825 level and was capped around the CHF 1.0940 level.\u00a0 The UBS consumption indicator will be released tomorrow followed by the June KOF leading indicator on Wednesday.\u00a0 SNB will publish balance of payments data for Q1 tomorrow.\u00a0 Swiss National Bank member Danthine reported deflationary pressures have \u201cpractically disappeared.\u201d\u00a0 Danthine added \u201cIf the need (to raise interest rates) was felt, the SNB would be able to react very quickly. But currently, we can work without having to hurry.\u201d\u00a0 Swiss National Bank is expected to intervene considerably less in the coming months after amassing a very large portfolio of euro reserves to prevent the franc from appreciating too much.\u00a0 U.S. dollar offers are cited around the CHF 1.1470 level.\u00a0 The euro depreciated vis-\u00e0-vis the Swiss franc as the single currency tested bids around the CHF 1.3355 level while the British pound moved lower vis-\u00e0-vis the Swiss franc and tested bids around the CHF 1.6295 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":"

Spanish and Italian debt declined today on account of the lack of a global agreement on deleveraging global output from massive fiscal spending programs and new debt issuance…<\/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-10611","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10611","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=10611"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10611\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=10611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=10611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=10611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}