{"id":1118,"date":"2009-03-27T12:24:04","date_gmt":"2009-03-27T17:24:04","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1118"},"modified":"2009-03-27T12:24:04","modified_gmt":"2009-03-27T17:24:04","slug":"fundamental-outlook-at-1400-gmt-edt-0400-5","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/03\/27\/fundamental-outlook-at-1400-gmt-edt-0400-5\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

By GCI Fx Research<\/span><\/p>\n

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

The euro fell sharply vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3290 level and was capped around the US$ 1.3590 level. \u00a0Stops were reached below the $1.3435 level as the common currency reached its lowest level this week. \u00a0Italian bank Monte dei Paschi di Siena SpA sought government aid after announcing its Q4 2008 profit plunged 47%. \u00a0Data released in the eurozone today saw January industrial new orders decline 3.4% while France reported its Q4 2008 gross domestic product was off 1.1% q\/q and 0.9% y\/y. \u00a0Bank of Italy reported the EMU-16 economy contracted at a slower pace in March. \u00a0Germany reported January import prices were off 0.5%. \u00a0In U.S. news, traders will pay close attention to the meeting in Washington, D.C. today between President Obama and the chief executives of several financial institutions. \u00a0Some U.S. banks are now trying to return the TARP funds they borrowed last year or withdrawing their TARP applications. \u00a0The other big news in Washington, D.C. continues to be Treasury Secretary Geithner\u2019s plans to enhance regulation of derivatives and seek power to seize troubled financial institutions. \u00a0Data released in the U.S. todays saw February personal spending climb +0.2% while personal income was off 0.2%. \u00a0Also, the personal consumption expenditures core price index was up +0.2% m\/m and 1.8% y\/y. \u00a0Additionally, final March University of Michigan consumer sentiment printed at 57.3, up from 56.3 at the end of February. \u00a0Euro bids are cited around the US$ 1.3245 level.<\/p>\n

\u00a0<\/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 \u00a597.10 level and was capped around the \u00a598.85 level. \u00a0Sentiment in global equities markets soured overnight and the yen moved higher as risk aversion increased. \u00a0Data released in Japan overnight saw February retail sales decline 5.8% y\/y, the sharpest decline since February 2002 and the fifth consecutive monthly decline. \u00a0Also, February core consumer prices were flat y\/y but most economists expect annualized rates of inflation to turn negative soon. \u00a0Core consumer price inflation for the Tokyo area softened to a preliminary 0.4% in March. \u00a0Many traders believe Bank of Japan will soon increase its purchase of asset-backed securities to try and ease credit strains. \u00a0Japan\u2019s fiscal year concludes on 31 March and some financial institutions may receive subordinated loans from the central bank to bolster temporary liquidity demand. \u00a0 The Nikkei 225 stock index lost 0.11% to close at \u00a58,626.90. \u00a0U.S. dollar offers are cited around the \u00a5104.15 level. \u00a0The euro moved lower vis-\u00e0-vis the yen as the single currency tested bids around the \u00a5129.35 level and was capped around the \u00a5133.85 level. \u00a0The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5139.00 figure while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a585.05 level. \u00a0The Chinese yuan appreciated vis-\u00e0-vis the U.S. dollar as the greenback closed at CNY 6.8280 in the over-the-counter market, down from CNY 6.8304. \u00a0People\u2019s Bank of China called for enhanced international financial regulation to arise from the G20 meeting in London next week.<\/p>\n

\u00a0<\/p>\n

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

The British pound weakened vis-\u00e0-vis the U.S. dollar today as cable tested bids around the US$ 1.4265 level and was capped around the $1.4495 level. \u00a0Bank of England Chief Economist Dale reported said the central bank may only need to purchased a \u201crelatively small\u201d amount of corporate bonds as part of its quantitative easing strategy. \u00a0BoE has purchased \u20a413 billion in government bonds and \u20a4128 million in corporate bonds to date. \u00a0Yields on gilts have declined 40-60 basis points since the BoE announced it will purchase government debt. \u00a0Dale also sees an economic recovery materializing by the end of the year. \u00a0Chancellor of the Exchequer Darling said the government will likely hold a \u201csignificant\u201d stake in the U.K. banking sector for years to come. \u00a0The government has injected \u20a437 billion of capital into major banks and offered insurance against toxic assets worth hundreds of billions more. Data released in the U.K. today saw the Q4 current account deficit narrow more than expected to \u20a47.6 billion. \u00a0Prime Minister Brown indicated the government will not implement a broad second fiscal stimulus next month when the Budget statement is released. \u00a0Cable bids are cited around the US$ 1.4085 level. \u00a0The euro came off vis-\u00e0-vis the British pound as the single currency tested bids around the \u20a40.9275 level and was capped around the \u20a40.9420 level.<\/p>\n

\u00a0<\/p>\n

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

The Swiss franc depreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested offers around the CHF 1.1440 level and was supported around the CHF 1.1220 level. \u00a0Data released in Switzerland today saw the March KOF leading indicator decline to -1.79. \u00a0U.S. dollar bids are cited around the CHF 1.1165 level. \u00a0The euro came off vis-\u00e0-vis the Swiss franc as the single currency tested bids around the CHF 1.5175 level while the British pound gained ground vis-\u00e0-vis the Swiss franc and tested offers around the CHF 1.6385 level.<\/p>\n

\u00a0<\/p>\n

A$<\/strong><\/p>\n

The Australian dollar moved lower vis-\u00e0-vis the U.S. dollar today as the Aussie tested bids around the US$ 0.6900 figure and was capped around the $0.7030 level. \u00a0Australian dollar bids are cited around the US$ 0.6785 level.<\/p>\n

C$<\/strong><\/p>\n

The Canadian dollar came off vis-\u00e0-vis the U.S. dollar today as the greenback tested offers around the C$ 1.2410 level and was supported around the C$ 1.2265 level. \u00a0U.S. dollar bids are cited around the C$ 1.2065 level.<\/p>\n

Daily Market Commentary provided by\u00a0GCI 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 fell sharply vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3290 level and was capped around the US$ 1.3590 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-1118","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1118","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=1118"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1118\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}