{"id":11194,"date":"2010-07-19T16:59:13","date_gmt":"2010-07-19T20:59:13","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=11194"},"modified":"2010-07-19T16:59:13","modified_gmt":"2010-07-19T20:59:13","slug":"forex-daily-market-commentary-86","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/07\/19\/forex-daily-market-commentary-86\/","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$ 1.2990 level and was supported around the $1.2870 level.\u00a0 The common currency stopped just short of testing the US$ 1.3000 figure during the European session and North American dealers knocked the pair lower.\u00a0 Federal Reserve Chaiman Bernanke testifies this week following the Fed\u2019s downward revisions to economic growth and inflation forecasts and its upward revision to its unemployment projections.\u00a0 The common currency tracked U.S. equities higher today as traders responded to some positive U.S. earnings data and shook off a report British Petroleum\u2019s well cap solution in the Gulf of Mexico may be leaking.\u00a0 Data released in the U.S. today saw the July NAHB housing market index decline to +14 from the revised prior reading of +16.\u00a0 Data to be released tomorrow include June housing starts and June building permits.\u00a0 In eurozone news, there was a report today that Germany\u2019s Hypo Real Estate Holding AG failed its bank stress test.\u00a0 Results from up to 91 European bank stress tests will be released on Friday and may impact the euro\u2019s direction.\u00a0 There is talk that the International Monetary Fund will seek to increase the amount of funds it can lend to US$ 1 trillion from the current level of US$ 750 billion.\u00a0 Data released in the eurozone today saw the EMU-16 May current account balance widen to \u2013\u20ac$ 5.8 billion from the revised print of -\u20ac5.6 billion.\u00a0 Also, EMU-16 May construction output was off 1.0% m\/m and 6.3% y\/y.\u00a0 Euro offers are cited around the US$ 1.2830 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 \u00a587.20 level and was capped around the \u00a586.50 level.\u00a0 An anonymous Bank of Japan source suggested the central bank may intervene around the \u00a585 level if the pair depreciates to that area and continues to trade there.\u00a0 Japanese monetary authorities have not officially intervened for years but they will clearly not want the pair to risk a move below the \u00a580 figure.\u00a0 Japanese financial markets were closed overnight and will reopen overnight.\u00a0 Data to be released in Japan overnight include the May leading index, May coincident index, and June convenience store sales.\u00a0 The Cabinet Office will release its monthly economic report on Wednesday.\u00a0 The Nikkei 225 stock index on Friday lost 2.86% to close at \u00a59,408.36.\u00a0 U.S. dollar bids are cited around the \u00a586.29 level.\u00a0\u00a0 The euro moved higher vis-\u00e0-vis the yen as the single currency tested offers around the \u00a5113.05 level and was supported around the \u00a5111.40 level.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling tested offers around the \u00a5133.40 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a583.10 level. In Chinese news, the U.S. dollar appreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.7787 in the over-the-counter market, up from CNY 6.7747.\u00a0 Former People\u2019s Bank of China adviser Yu Yongding reported China should reduce the amount of U.S. Dollar holdings in its portfolio.\u00a0 China\u2019s foreign exchange reserves totaled US$ 2.454 trillion in the second quarter and in May, China reduced its U.S. Treasury holdings to US$ 867.7 billion.\u00a0 PBoC is expected to maintain a relatively loose monetary policy.<\/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$ 1.5235 level and was capped around the US$ 1.5350 level.\u00a0 Many data will be released in the U.K. tomorrow including June public finances, the June M4 money supply, June CBI total orders, and June CBI business optimism.\u00a0 Bank of England Monetary Policy Committee member Sentance reported a \u201cgradual\u201d increase in interest rates would be \u201chelpful for the economic recovery.\u201d\u00a0 Cable bids are cited around the US$ 1.5140 level.\u00a0 The euro appreciated vis-\u00e0-vis the British pound as the single currency tested offers around the \u00a30.8505 level and was supported around the \u00a30.8425 level.<\/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 1.0535 level and was supported around the CHF 1.0445 level.\u00a0 Data to be released in Switzerland tomorrow include the June trade balance followed by June money supply data on Wednesday.\u00a0 Most dealers believe SNB has been forced to intervene less on account of all of the euro-denominated assets on its balance sheet but some note the SNB will likely continue to intervene at opportune levels.\u00a0 U.S. dollar offers are cited around the CHF 1.0980 level.\u00a0 The euro appreciated vis-\u00e0-vis the Swiss franc as the single currency tested offers around the CHF 1.3650 level while the British pound moved lower vis-\u00e0-vis the Swiss franc and tested bids around the CHF 1.6010 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":"

Japanese monetary authorities have not officially intervened for years but they will clearly not want the pair to risk a move below the \u00a580 figure…<\/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-11194","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11194","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=11194"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11194\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=11194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=11194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=11194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}