{"id":1240,"date":"2009-04-06T13:47:40","date_gmt":"2009-04-06T18:47:40","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1240"},"modified":"2009-04-06T13:47:40","modified_gmt":"2009-04-06T18:47:40","slug":"fundamental-outlook-at-1400-gmt-edt-0400-11","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/04\/06\/fundamental-outlook-at-1400-gmt-edt-0400-11\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro came off vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3380 level and was capped around the US$ 1.3580 level.\u00a0 U.S. equity markets weakened on news that IBM was pulling out of a deal to acquire Sun Microsystems.\u00a0 Many traders are also hestiant to enter new long positions ahead of the upcoming release of corporate first quarter earnings.\u00a0 The common currency was also pressured lower on news that the International Monetary Fund has proposed that Central and Eastern European European Union members should be permitted to join the eurozone as quasi-members.\u00a0 The European Central Bank is strongly objected and countered by saying \u201cThe position of the European Central Bank is very well known: we consider the implementation of the treaty criteria to be indispensable. All the treaty, nothing but the treaty.\u201d\u00a0 ECB member Bini Smaghi called for \u201cverbal discipline\u201d from policymakers when discussing exchange rates.\u00a0 Data released in the eurozone today saw the EMU-16 producer price index decline 0.5% m\/m and 1.8% y\/y \u2013 its largest annual decline in ten years.\u00a0 Many traders believe these weak data will encourage the ECB to reduce interest rates further.\u00a0 Other data saw February retails ales off 0.6% and the Sentix investor confidence index improved to -35.3 from -42.7.\u00a0\u00a0 In U.S. news, the March employment trends index fell 2.3% to 90.1.\u00a0 Dealers are talking about the Obama administration\u2019s statement that it may replace senior managers at U.S. financial institutions if they do not do an adequate job in turning their companies around.\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 \u00a5101.45 level and was supported around the \u00a5100.15 level.\u00a0 Bank of Japan reported it will provide the Federal Reserve with up to \u00a510 trillion in a liquidity swap agreement to assist U.S. banks access foreign currency.\u00a0 Data released in Japan overnight saw February leading indicators improved to 20.0 from 9.1 in January.\u00a0 The Nikkei 225 stock index climbed 1.24% to close at \u00a58,857.93.\u00a0 U.S. dollar offers are cited around the \u00a5104.15 level.\u00a0 The euro moved lower vis-\u00e0-vis the yen as the single currency tested bids around the \u00a5134.70 level and was capped around the \u00a5137.40 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested offers around the \u00a5148.45 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested offers around the \u00a588.40 level.\u00a0 The Chinese yuan was unchanged vis-\u00e0-vis the U.S. dollar today as the greenback closed at CNY 6.8343 in the over-the-counter market.<\/p>\n

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

The British pound came off vis-\u00e0-vis the U.S. dollar today as cable tested bids around the US$ 1.4725 level and was capped around the $1.4955 level.\u00a0 Chancellor of the Exchequer Darling reported the U.K.\u2019s recession is \u201cworse than we thought\u201d and said any economic growth \u201cmay be in the back end of the year.\u201d\u00a0 Bank of England reported it will establish a temporary currency swap agreement with the Federal Reserve if required to ensure an adequate supply of sterling liquidity to the U.S. if required.\u00a0 CBI reported U.K. businesses had better access to credit in the three months to March than the previous three month period.\u00a0 Cable bids are cited around the US$ 1.4515 level.\u00a0 The euro came off vis-\u00e0-vis the British pound as the single currency tested bids around the \u20a40.9035 level and was capped around the \u20a40.9110 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 1.1405 level and was supported around the CHF 1.1240 level.\u00a0 Swiss National Bank reported it has expanded its Swiss franc swap facility with the Federal Reserve.\u00a0 U.S. dollar bids are cited around the CHF 1.1165 level.\u00a0 The euro moved lower vis-\u00e0-vis the Swiss franc as the single currency tested bids around the CHF 1.5220 level while the British pound gained ground vis-\u00e0-vis the Swiss franc and tested offers around the CHF 1.6885 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 –
\nThe euro came off vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3380 level and was capped…<\/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-1240","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1240","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=1240"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1240\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}