{"id":1074,"date":"2009-03-24T14:40:58","date_gmt":"2009-03-24T19:40:58","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1074"},"modified":"2009-03-24T14:40:58","modified_gmt":"2009-03-24T19:40:58","slug":"fundamental-outlook-at-1400-gmt-edt-0400-3","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/03\/24\/fundamental-outlook-at-1400-gmt-edt-0400-3\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

By GCI Fx Research<\/span><\/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$ 1.3475 level and was capped around the US$ 1.3675 level.\u00a0 The big news in the market remains a growing chorus of countries that suggest a new international reserve currency be created \u2013 possibly in concert with the International Monetary Fund \u2013 to counter the U.S. dollar\u2019s traditional role.\u00a0 People\u2019s Bank of China Governor Zhou has put forth this proposal and Russia has put forth a similar proposal.\u00a0 Any indication that this plan could gain traction with or without the Group of Twenty\u2019s involvement could be U.S. dollar negative.\u00a0 In eurozone news, Bank of Italy official Panetta reported \u201cthe risks of a deflationary phase are intensifying\u201d in the eurozone. Germany\u2019s BGA Group said German exports may decline by up to 15% in 2009.\u00a0 Data released in the eurozone today saw the January EMU-16 current account deficit print at -\u20ac12.7 billion, worse than December\u2019s revised -\u20ac7.6 billion deficit.\u00a0 Also, German March manufacturing PMI rose to 32.4 from 32.1 in February with the PMI services index at 41.7 with while EMU-16 February manufacturing PMI rose to 34 with the services index higher at 40.1.\u00a0 Similarly, the French manufacturing PMI printed at 36.3 and it was also reported that French February consumer spending was off 2.0% m\/m and 2.0% y\/y.\u00a0 In U.S. news, the March Richmond Fed manufacturing index improved to -20 from -51 in February.\u00a0 Also, Redbook retail sales were flat m\/m for the first three weeks of March.\u00a0 Euro bids are cited around the US$ 1.2385 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 \u00a598.55 level and was supported around the \u00a596.90 level.\u00a0 Bank of Japan purchased \u00a51.1 billion in equities from banks between 23 February and 20 March.\u00a0 In February, BoJ decided to purchase \u00a51 trillion in bank-owned shares through April 2010.\u00a0 The yen was given across the board on increased risk appetite stemming from U.S. Treasury Secretary Geithner\u2019s plan announced yesterday to purchase toxic assets through public-private partnerships.\u00a0 Traders also paid close attention to BoJ Policy Board\u2019s meeting minutes overnight.\u00a0 The Nikkei 225 stock index climbed 3.32% to close at \u00a58,488.30.\u00a0 U.S. dollar offers are cited around the \u00a5104.15 level.\u00a0 The euro moved higher vis-\u00e0-vis the yen as the single currency tested offers around the \u00a5134.50 level and was supported around the \u00a5132.00 figure.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling tested offers around the \u00a5145.05 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a587.70 level.\u00a0 The Chinese yuan appreciated vis-\u00e0-vis the U.S. dollar as the greenback closed at CNY 6.8294 in the over-the-counter market, down from CNY 6.8335.<\/p>\n

\u20a4<\/strong><\/p>\n

The British pound appreciated vis-\u00e0-vis the U.S. dollar today as cable tested offers around the US$ 1.4775 level and was supported around the $1.4545 level.\u00a0 Sterling was bid higher after February consumer price inflation expanded 0.9%, above expectations of a 0.2% gain.\u00a0 These data suggest consumer price inflation may not be as weak as expected and this has led to speculation that Bank of England\u2019s recently-launched quantitative easing measures may be relatively short-lived.\u00a0 At the core level, core consumer price inflation rose 0.7% m\/m and 1.6% y\/y.\u00a0 Other data saw February net mortgage lending grow to \u20a43.9 billion from \u20a43.4 billion in January.\u00a0 BoE Governor King downplayed today\u2019s surprising print in inflation and attributed the data to the decline in sterling.\u00a0 King also reaffirmed BoE\u2019s projections that inflation would undershoot its target band and said the conclusion of its quantitative easing framework would be dependent on inflation.\u00a0 Moreover, he said BoE is trying to raise the savings rate and added quantitative easing measures may take up to six months to have an impact.\u00a0 Cable bids are cited around the US$ 1.4410 level.\u00a0 The euro moved lower vis-\u00e0-vis the British pound as the single currency tested bids around the \u20a40.9170 level and was capped around the \u20a40.9360 level.<\/p>\n

Daily Market Commentary provided by 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.<\/span><\/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.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By GCI Financial – The euro depreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3475 level and was capped…<\/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-1074","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1074","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=1074"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1074\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}