{"id":1097,"date":"2009-03-25T18:49:00","date_gmt":"2009-03-25T23:49:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1097"},"modified":"2009-03-25T18:49:00","modified_gmt":"2009-03-25T23:49:00","slug":"fundamental-outlook-at-1400-gmt-edt-0400-4","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/03\/25\/fundamental-outlook-at-1400-gmt-edt-0400-4\/","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$ 1.3430 level and was capped around the US$ 1.3675 level.\u00a0 President Obama spoke last night and defended his budget proposal.\u00a0 Obama also noted the U.S. dollar is \u201cextraordinarily strong right now\u201d and said he doesn\u2019t see a need for a global reserve currency, an idea being promoted by China and Russia.\u00a0 In contrast, U.S. Treasury Secretary Geithner today said he is open to the proposal but later clarified his remarks after the dollar fell sharply, noting the U.S. dollar would remain the main global reserve currency.\u00a0 Some traders expect the proposal will gain some traction at the Group of Twenty meeting on 2 April.\u00a0 Data released in the U.S. today saw Febuary headline durable goods orders climb an unexpected 3.4%, defying expectations of a modest decline, while February new home sales were up 4.7% to an annualized 337,000 last month – the first improvement in seven months.\u00a0 On an annualized basis, however, new home sales were off 41.1% and durables were off 28.4% y\/y.\u00a0 Notably, orders for non-defense capital goods excluding aircraft were up 6.6% after falling 11.3% in January abd February building permits were upwardly revised to +6.2% from +3.0%.\u00a0 Recent economic data in the U.S. have been encouraging but it is premature to say an economic recovery is afoot.\u00a0 In eurozone news, French February unemployment was up 3.5% to 2.385 million and up 19% y\/y.\u00a0 Also, the German March Ifo index of business sentiment fell to a record low of 82.1, indicating a worsening recession in the eurozone\u2019s largest economy.\u00a0 Eurogroup chairman Juncker talked about reported U.S. pressure on the eurozone to increase fiscal stimulus spending saying \u201cIt is out of the question that we increase our economic stimulus plans.\u00a0 I see a timid recovery towards the end of 2010.\u201d\u00a0 Euro bids are cited around the US$ 1.3245 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 \u00a596.90 level and was capped around the \u00a598.35 level.\u00a0 Bank of Japan Deputy Governor Yamaguchi reported the BoJ\u2019s focus \u201cwill be placed, for the time being, on securing market stability and facilitating corporate financing.\u00a0 The bank will continue to examine carefully developments in financial markets and corporate financing and to take necessary measures in a decisive manner without any predetermined view.\u201d\u00a0 Yamaguchi was pessimistic on Japan\u2019s export outlook and said recently announced quantitative easing measures such as purchasing more bonds outright and providing subordinated loans to banks through the fiscal year-end next week may not be sufficient.\u00a0 Furthermore, he said consumer prices may soon begin declining on a year-over-year basis.\u00a0 BoJ Governor Shirakawa today testified \u201cThe country’s economy is facing downside risks and prices will likely soon start falling. But right now the country is not going through a vicious cycle where economic contraction and price falls reinforce each other.\u201d The Nikkei 225 stock index lost 0.23% to close at \u00a58,479.99.\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 \u00a5132.85 level and was supported around the \u00a5130.75 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5140.95 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a587.20 level.\u00a0 The Chinese yuan depreciated vis-\u00e0-vis the U.S. dollar as the greenback closed at CNY 6.8304 in the over-the-counter market, up from CNY 6.8294.<\/p>\n

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

The British pound depreciated vis-\u00e0-vis the U.S. dollar today as cable tested bids around the US$ 1.4515 level and was capped around the $1.4735 level.\u00a0 Bank of England purchased corporate bonds worth \u20a485.525 million in the secondary market today, part of its quantitative easing plan to ease credit strains.\u00a0 U.K. Business Secretary Mandelson today reported the \u201cera of the G8 is over.\u201d\u00a0 London will host the Group of Twenty meeting on 2 April.\u00a0 Chancellor of the Exchequer Darling is expected to downgrade his growth forecasts and increase his borrowing estimates when he presents his budget on 22 April.\u00a0 Prime Minister Brown today reported \u201cThe U.K. government will do whatever is necessary to revive growth, with global deflation the main danger in the short term.\u201d\u00a0 Cable bids are cited around the US$ 1.4410 level.\u00a0 The euro moved higher vis-\u00e0-vis the British pound as the single currency tested offers around the \u20a40.9375 level and was supported around the \u20a40.9160 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 British pound depreciated vis-\u00e0-vis the U.S. dollar today as cable tested bids around the US$ 1.4515 level and was capped around the $1.4735 level…<\/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-1097","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1097","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=1097"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1097\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}