{"id":1138,"date":"2009-03-31T15:13:46","date_gmt":"2009-03-31T20:13:46","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1138"},"modified":"2009-03-31T15:13:46","modified_gmt":"2009-03-31T20:13:46","slug":"fundamental-outlook-at-1400-gmt-edt-0400-7","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/03\/31\/fundamental-outlook-at-1400-gmt-edt-0400-7\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

By GCI Fx Research<\/span><\/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$ 1.3340 level and was supported around the US$ 1.3175 level.\u00a0 Data released in the eurozone overnight saw flash March eurozone consumer price inflation recede to its lowest level ever, declining to 0.6% from 1.2% in February \u2013 much lower than expected.\u00a0 EMU-16 inflation remains in a downward trend and this will likely provide the European Central Bank with more scope to reduce interest rates in the near term.\u00a0 It is possible the ECB will reduce its main refinancing rate by 50bps on Thursday from the current 1.50%.\u00a0 Notable, the ECB has already reduced rates by 275bps since October and there is widespread speculation the ECB may adopt a quantitative easing framework that could involve the purchase of sovereign debt in the secondary market.\u00a0 Eurogroup chairman Juncker said the European Union\u2019s \u20ac200 million fiscal stimulus plan will not have a \u201ctangible immediate\u201d impact on the economy and sees a greater impact in 2010.\u00a0 Other eurozone data saw German unemployment rise in March, up 69,000 to around 3.586 million.\u00a0 In U.S. news, St. Louis Federal Reserve President Bullard expressed concen with the rapid growth in the U.S. monetary base.\u00a0 Data released in the U.S. today saw the 20-city January S&P Case-Shiller home price index off 19.0% while the average price of U.S. homes dipped to 2003 levels.\u00a0 Data to be released today include March consumer confidence and March Chicago PMI.\u00a0 Euro bids are cited around the US$ 1.3245 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 \u00a598.65 level and was supported around the \u00a597.20 level.\u00a0\u00a0 There is talk that Japan may have decided to move forward with its third fiscal stimulus plan.\u00a0 Today is the last day of Japan\u2019s fiscal year and many data were released overnight.\u00a0 First, February all household spending was off 3.5% y\/y.\u00a0 Second, February construction orders were off 24.9% y\/y to \u00a5916.8 billion.\u00a0 Third, February housing starts were off 24.9% y\/y to 62,303 units.\u00a0 Fourth, the February jobless rate rose to 4.4%.\u00a0 The Nikkei 225 stock index lost 1.54% to close at \u00a58,109.53.\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 \u00a5131.55 level and was supported around the \u00a5128.20 level.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling tested offers around the \u00a5141.35 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a586.65 level.\u00a0 The Chinese yuan appreciated vis-\u00e0-vis the U.S. dollar as the greenback closed at CNY 6.8330 in the over-the-counter market, down from CNY 6.8331.<\/p>\n

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

The British pound strengthened vis-\u00e0-vis the U.S. dollar today as cable tested offers around the US$ 1.4345 level and was supported around the $1.4240 level.\u00a0 Bank of England Deputy Governor Tucker indicated implement countercyclical regulations is \u201cincredibly ambitious.\u201d\u00a0 London will host the Group of Twenty meeting over the next couple of days and traders are paying attention to some key themes. First, dealers want to see if the eurozone is cajoled into increasing the size of its fiscal stimulus by U.S. officials.\u00a0 Second, dealers want to see if there is any movement afoot to create an international reserve currency much as China and Russia have suggested.\u00a0 Third, dealers are waiting to see if the global financial community tried to implement an international regulatory framework, a plan that is being sharply resisted by Germany and some other nations.\u00a0 Data released in the U.K. today saw the January index of services worsen to -1.3% from -0.8%.\u00a0 Also, the GfK NOP consumer confidence figure improved to -30 from -35 in February.\u00a0 Cable bids are cited around the US$ 1.4085 level.\u00a0 The euro rallied vis-\u00e0-vis the British pound as the single currency tested offers round the \u20a40.9315 level and was supported around the \u20a40.9240 level.<\/p>\n

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

The Swiss franc appreciated sharply vis-\u00e0-vis the U.S. dollar today as the greenback tested offers around the CHF 1.1355 level and was capped around the CHF 1.1515 level.\u00a0 Swiss National Bank is expected to continue pursing quantitative easing measures by conducting franc-selling intervention in the foreign exchange markets.\u00a0 Data released in Switzerland today saw the February UBS consumption indicator decline to 0.89.\u00a0\u00a0 U.S. dollar bids are cited around the CHF 1.1165 level. The euro came off vis-\u00e0-vis the Swiss franc as the single currency tested bids around the CHF 1.5140 level while the British pound lost ground vis-\u00e0-vis the Swiss franc and tested bids around the CHF 1.6260 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.<\/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":"

By GCI Financial – The euro appreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3340 level and was supported around…<\/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-1138","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1138","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=1138"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1138\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}