{"id":11706,"date":"2010-08-03T19:35:35","date_gmt":"2010-08-03T23:35:35","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=11706"},"modified":"2010-08-03T19:35:35","modified_gmt":"2010-08-03T23:35:35","slug":"forex-daily-market-commentary-89","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/08\/03\/forex-daily-market-commentary-89\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

By GCI Forex<\/a> 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$ 1.3260 level and was supported around the $1.3145 level.\u00a0 The common currency rocketed to its highest level since May of this year and tested a major resistance level at US$ 1.3265, representing the 76.4% retracement level of the move from $1.3690 to $1.1875.\u00a0 Improving global demand for riskier assets propelled the pair higher to multi-week highs.\u00a0 Data released in the U.S. today saw June personal income decline to +0.0% while personal spending also came in at +0.0%.\u00a0 The June PCE deflator shrank to +1.4% y\/y from the prior reading of 2.1% and core PCE was up 0.0% m\/m and 1.4% y\/y.\u00a0 These data will stoke a discussion about the possibility of deflation in the U.S. economy but most economists are reporting this is simply a disinflationary period.\u00a0 Other data saw June factory orders off 1.2%, an improvement from the prior reading of -1.8%, while June pending home sales were off 2.6% m\/m and down 20.1% y\/y, underscoring ongoing problems in the U.S. housing sector.\u00a0 Data to be released tomorrow include MBA mortgage applications, July Challenger job cuts, July ADP employment data, and July ISM non-manufacturing data.\u00a0 There is ongoing speculation the Federal Reserve may be forced to resume its asset-purchase programs to provide additional liquidity and support to the U.S. economy at a time when the Fed is trying to reduce its balance sheet.\u00a0 Fed Chairman Bernanke yesterday reported that consumer spending \u201cis likely to pick up\u201d amid a \u201cmoderate\u201d expansion.\u00a0 Last week, Philadelphia Fed President Plosser said additional calls for Fed stimulus \u201care premature.\u201d\u00a0 Two-year U.S. Treasury yields fell to a record low today at 0.51%.\u00a0 Most dealers expect the Federal Open Market Committee will keep monetary policy unchanged next Tuesday.\u00a0 In eurozone news, eurozone June producer price inflation was up 0.3% m\/m and 3.0% y\/y.\u00a0 Many traders believe the Fed will be more proactive about stimulating the economy through monetary policy measures than the European Central Bank and this perception of declining U.S. yields is adding to the euro\u2019s gains.\u00a0 Eurogroup Chairman Juncker said policymakers are \u201csatisfied\u201d with Greek financial reforms undertaken so far.\u00a0 Euro offers are cited around the US$ 1.3505 level.<\/p>\n

\u00a5\/ CNY<\/strong><\/p>\n

The yen appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested offers around the \u00a586.65 level and was supported around the \u00a585.65 level. Central bank officials from Japan, China, and South Korea convened today to discuss the regional economy.\u00a0 Traders continue to test the Japanese government\u2019s resolve by pushing the pair back to the \u00a585 handle.\u00a0 There continues to be chatter that Japanese monetary authorities will conduct yen-selling intervention if the pair weakens much more.\u00a0 Ten-year Japanese government bonds yields declined further today to 1.03%, an indication that traders expect the continued downward pressure on markets borrowing costs.\u00a0 Bank of Japan Policy Board member Miyao warned the yen\u2019s appreciation may damage the Japanese economy and impact the central bank\u2019s economic outlook.\u00a0 Data released in Japan overnight saw the July monetary base climb 6.1% y\/y.\u00a0 The Nikkei 225 stock index climbed 1.29% to close at \u00a59,694.01.\u00a0 U.S. dollar bids are cited around the \u00a586.29 level.\u00a0\u00a0 The euro moved lower vis-\u00e0-vis the yen as the single currency tested bids around the \u00a5113.10 level and was capped around the \u00a5114.15 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5136.30 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a582.45 level. In Chinese news, the U.S. dollar depreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.7734 in the over-the-counter market, down from CNY 6.7745.\u00a0 Data released in China overnight saw the July non-manufacturing PMI survey tick higher to 60.1 from the prior result of 57.4. HSBC July PMI services data will be released overnight.\u00a0 Former People\u2019s Bank of China adviser Yu warned he \u201cdoes not think U.S. Treasuries are safe in the medium-and-long run.\u201d<\/p>\n

\u00a3<\/strong><\/p>\n

The British pound appreciated sharply vis-\u00e0-vis the U.S. dollar today as cable tested offers around the US$ 1.5965 level and was supported around the US$ 1.5860 level.\u00a0 Sterling pushed higher after former Bank of England Deputy Governor Gieve reported the central bank should not loosen monetary policy further or increase its asset-purchase program.\u00a0 Also, dealers pushed sterling higher on news that government-owned mortgage lender Northern Rock registered its first profit.\u00a0 BoE\u2019s Monetary Policy Committee convenes on Thursday and while it is not expected to raise rates, there may be more than one policymakers who votes for higher rates.\u00a0 Data released in the U.K. today saw July PMI construction decline to 54.1.\u00a0 The BRC July shop price index will be released tonight.\u00a0 Cable bids are cited around the US$ 1.5270 level.\u00a0 The euro appreciated vis-\u00e0-vis the British pound as the single currency tested offers around the \u00a30.8315 level and was supported around the \u00a30.8270 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 1.0415 level and was supported around the CHF 1.0345 level.\u00a0 Data released in Switzerland today saw July consumer price inflation off 0.7% m\/m and up 0.4% y\/y.\u00a0 Data released in Switzerland yesterday saw June retail sales decline to +0.9% y\/y from the revised prior print of +3.9% y\/y.\u00a0 The July PMI manufacturing survey improved to 66.9 from the prior reading of 65.7.\u00a0 July consumer price inflation data will be released tomorrow.\u00a0 Other data released yesterday saw the SNB July quarterly KOF employment indicator improve to 11.2 from a revised 3.8 in April.\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 1.3750 level while the British pound moved higher vis-\u00e0-vis the Swiss franc and tested offers around the CHF 1.6580 level.<\/p>\n

Forex Daily Market Commentary<\/strong><\/em> provided by<\/em><\/strong> GCI Financial Ltd<\/strong><\/a>.<\/strong><\/span><\/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":"

Data released in Switzerland today saw July consumer price inflation off 0.7% m\/m and up 0.4% y\/y. Data released in Switzerland yesterday saw June retail sales decline…<\/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-11706","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11706","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=11706"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11706\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=11706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=11706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=11706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}