{"id":12865,"date":"2010-09-09T10:05:42","date_gmt":"2010-09-09T14:05:42","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=12865"},"modified":"2010-09-09T10:05:42","modified_gmt":"2010-09-09T14:05:42","slug":"forex-daily-market-commentary-108","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/09\/09\/forex-daily-market-commentary-108\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

By GCI Forex Research<\/strong><\/p>\n

FUNDAMENTAL OUTLOOK at 1400 GMT (EDT +0400)<\/span><\/strong><\/p>\n

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

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

The euro depreciated \t\t\tvis-\u00e0-vis the U.S. dollar today<\/strong> as the \t\t\tsingle currency tested bids around the US$ 1.2665 level and was \t\t\tcapped around the $1.2740 level.\u00a0 Many European Central Bank \t\t\tofficials were on the tape today.\u00a0 ECB member Stark reiterated some \t\t\tGerman banks require more capital and there is speculation some \t\t\teurozone banks will struggle to raise additional capital.\u00a0 German \t\t\tauthorities are speculating Germany\u2019s ten largest banks may require \t\t\tabout \u20ac105 billion in additional capitalization.\u00a0 ECB member \t\t\tLiikanen said global current account imbalances remain while ECB\u2019s \t\t\tMersch said stricter bank capital rules will benefit the eurozone.\u00a0 \t\t\tLiikanen added inflation expectations are consistent with the ECB\u2019s \t\t\ttarget.\u00a0 Mersch also said the ECB will next deliberate the ECB\u2019s \t\t\temergency policy measures in December.\u00a0 The European Central Bank\u2019s \t\t\tmonthly bulletin reported economic growth momentum is \u201cmoderating \t\t\tsomewhat\u201d and said inflation risks are \u201cslightly tiled to the \t\t\tupside.\u201d\u00a0 The ECB also confirmed emergency bank lending will extend \t\t\tinto 2011.\u00a0 Greek finance minister Papaconstantinou reported the \t\t\tGreek economy will shrink less than 4% in 2010.\u00a0 Data released in \t\t\tGermany today saw August consumer price inflation up 0.0% m\/m and \t\t\t1.0% y\/y with the harmonized measure up the same amounts.\u00a0 Also, \t\t\tFrench Q2 non-farm payrolls were up 0.2% q\/q.\u00a0 In U.S. news<\/strong>, \t\t\tdata released today saw the July trade balance narrow to \u2013US$ 42.8 \t\t\tbillion from the revised prior reading of \u2013US$ 49.8 billion.\u00a0 Also, \t\t\tweekly initial jobless claims came in less-than-expected at 451,000 \t\t\tand continuing jobless claims printed at 4.478 million.\u00a0 The U.S. \t\t\tlabour market remains unable to gain much traction.\u00a0 President Obama \t\t\tyesterday said he does not support tax breaks for wealthier U.S. \t\t\ttaxpayers.\u00a0 Traders are still digesting yesterday\u2019s Fed Beige Book. \t\t\tEuro offers are cited around the US$ 1.3240 level.<\/p>\n

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

The yen appreciated vis-\u00e0-vis the U.S. dollar today<\/strong> as the greenback tested bids around the \u00a583.60 \t\t\tlevel and was capped around the \u00a584.00 figure.\u00a0 Bank of Japan \t\t\tGovernor Shirakawa defended the central bank\u2019s self-imposed limit on \t\t\tJapanese government bond purchases, citing \u201cadverse effects\u201d on \t\t\teconomic growth.\u00a0 DPJ officials today again called on the central \t\t\tbank to purchase more JGBs on top of the \u00a51.8 trillion in bonds it \t\t\tpurchases every month.\u00a0 Shirakawa reiterated there are increasing \t\t\tdownside risks to the Japanese economy.\u00a0 Some traders are still \t\t\tanticipating yen-selling intervention from Japanese monetary \t\t\tauthorities.\u00a0 Finance minister Noda stepped up the verbal rhetoric \t\t\ttoday about, saying authorities \u201care conducting various simulations\u201d \t\t\tto arrest the yen\u2019s strength and pledged to take \u201cdecisive steps\u201d in \t\t\tthe exchange rate market when necessary.\u00a0 Noda also said the \t\t\tgovernment is closely monitoring China\u2019s decision to increase its \t\t\tpurchases of Japanese debt.\u00a0 Data released in Japan overnight saw \t\t\tthe Q3 BSI large all-industry index improve while the Q3 large \t\t\tmanufacturing index also improved.\u00a0 Also, August consumer confidence \t\t\twaned to 42.5 and August machine tool orders were up 170% y\/y.\u00a0 Q2 \t\t\tGDP data will be released tonight along with the August corporate \t\t\tgoods price index.\u00a0 The Nikkei 225 stock index gained 0.82% to close \t\t\tat \u00a59,098.39. U.S. dollar bids are cited around the \u00a584.60 level.\u00a0 \u00a0The \t\t\teuro moved lower <\/strong>vis-\u00e0-vis the yen as the single currency tested \t\t\tbids around the \u00a5105.95 level and was capped around the \u00a5106.95 \t\t\tlevel.\u00a0 The British pound moved lower <\/strong>vis-\u00e0-vis the yen as \t\t\tsterling tested bids around the \u00a5128.65 level while the Swiss \t\t\tfranc moved lower <\/strong>vis-\u00e0-vis the yen and tested bids around the \t\t\t\u00a582.30 level. In Chinese news<\/strong>, the U.S. dollar depreciated \t\t\tvis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.7837 in \t\t\tthe over-the-counter market, down from CNY 6.7912. \u00a0U.S. Treasury \t\t\tSecretary Geithner called on China to allow the yuan to appreciate \t\t\tmore quickly.\u00a0 People\u2019s Bank of China member Xia Bin warned economic \t\t\tgrowth will slow and said China\u2019s 2010 loan policy should not \t\t\tchange.\u00a0 PBoC Governor Zhou warned zero per cent interest rates may \t\t\tdiscourage banks from lending.\u00a0 PBoC\u2019s Li said the central bank \t\t\tneeds to better manage inflation expectations.\u00a0 Chinese economic \t\t\tdata will be released on Saturday instead of Monday and this has \t\t\tcreated rumours that PBoC could raise rates on or before Monday.\u00a0 \t\t\tThere is speculation inflation may have increased to 3.5%.<\/p>\n

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

The British pound \t\t\tdepreciated vis-\u00e0-vis the U.S. dollar today<\/strong> as cable tested bids around the US$ 1.5375 level and was capped \t\t\taround the US$ 1.5475 level. \u00a0As expected, Bank of England\u2019s \t\t\tMonetary Policy Committee kept its benchmark Bank rate unchanged at \t\t\t0.50% today and kept its asset purchase target unchanged at \u00a3200 \t\t\tbillion. There is fresh speculation BoE may be forced to embark upon \t\t\ta new round of bond purchases following the recent pullback in \t\t\thousing, manufacturing, construction, and services.\u00a0 Some \t\t\tBoE-watchers are speculating the new stimulus could emerge in \t\t\tFebruary.\u00a0 Deputy Prime Minister spoke today and sterling came off \t\t\ton his remarks that the U.K. economic recovery will be \u201cchoppy and \t\t\tuneven.\u201d Data released in the U.K. today saw the July total trade \t\t\tbalance worsen to -\u00a34.916 billion.\u00a0 Cable bids are cited around the \t\t\tUS$ 1.5115 level.\u00a0 The euro appreciated<\/strong> vis-\u00e0-vis the British \t\t\tpound as the single currency tested offers around the \u00a30.8260 level \t\t\tand was supported around the \u00a30.8210 level.<\/p>\n

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

The Swiss franc \t\t\tdepreciated vis-\u00e0-vis the U.S. dollar today<\/strong> as the greenback tested offers around the CHF 1.0165 level and was \t\t\tsupported around the CHF 1.0100 figure. \u00a0Data released in \t\t\tSwitzerland this week saw the August unemployment rate remain steady \t\t\tat 3.6%.\u00a0 August producer and import prices will be released on 13 \t\t\tAugust.\u00a0 This week, Swiss National Bank reported its foreign \t\t\tcurrency holdings fell to CHF 218.1 billion in August from CHF 219.5 \t\t\tbillion in July, partially reflecting gains in the franc.\u00a0 In June, \t\t\tthe SNB reported it will intervene less in the markets by selling \t\t\tfewer francs after its currency holdings quadrupled.\u00a0 The SNB has \t\t\tlikely not officially intervened since June.\u00a0 U.S. dollar offers are \t\t\tcited around the CHF 1.0980 level.\u00a0 The euro appreciated<\/strong> vis-\u00e0-vis the Swiss franc as the single currency tested offers \t\t\taround the CHF 1.2920 level while the British pound moved lower<\/strong> vis-\u00e0-vis the Swiss franc and tested bids around the CHF 1.5580 \t\t\tlevel.<\/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":"

The euro depreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.2665 level and was capped around the $1.2740 level. Many European Central Bank officials…<\/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-12865","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/12865","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=12865"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/12865\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=12865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=12865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=12865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}