{"id":1506,"date":"2009-04-21T18:20:01","date_gmt":"2009-04-21T23:20:01","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1506"},"modified":"2009-04-21T18:20:01","modified_gmt":"2009-04-21T23:20:01","slug":"fundamental-outlook-at-1400-gmt-edt-0400-21","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/04\/21\/fundamental-outlook-at-1400-gmt-edt-0400-21\/","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 bids around the US$ 1.2995 level and was supported around the US$ 1.2895 level.\u00a0 Treasury Secretary Geithner defended the Obama adminsitration\u2019s plans to recapitalize the banking system saying \u201cIf we simply hoped that banks would work off these assets over time, we would be prolonging the economic crisis, which in turn would cost more to the taxpayer over time.\u201d\u00a0 Geithner added the \u201cvast majority of banks\u201d has more capital than they require to be considered \u201cwell-capitalized\u201d but conceded \u201cFor every dollar that banks are short of the capital they need, they will be forced to shrink their lending by $8 to $12.\u201d\u00a0 Geithner conceded that even the banks that remain well-capitalized are not lending enough to stimulate the economy.\u00a0 In eurozone news, European Central Bank member Ordonez reported \u201cIn general, available forecasts for developed economies point to intense difficulty in 2009\u201d and added an economic recovery may begin \u201csome time in 2010.\u201d\u00a0 Data released in the eurozone today caused the euro to dart higher as the German April ZEW economic expectations index rallied to 13.0 from -3.5 in March.\u00a0 Euro bids are cited around the US$ 1.2765 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 \u00a598.85 level and was supported around the \u00a597.70 level.\u00a0 The yen gave back recent gains as traders\u2019 risk aversion diminished and U.S. equities clawed back some of yesterday\u2019s appreciable losses.\u00a0 A government source indicated Japan may reduce its growth forecast for the current fiscal year to -3% from 0%.\u00a0 The government\u2019s Economic Planning Agency reports private forecasts on average estimate the inflation-adjusted gross domestic product rate may have contracted an annualized 12.76% in Q1, a rate that would be worse the 12.1% decline in the October \u2013 December period.\u00a0 The Aso government is likely to submit supplementary budget bills to Parliament on 27 April that will finance a stimulus plan with a record \u00a515.4 trillion in new spending and tax cuts.\u00a0 The Nikkei 225 stock index shed 2.39% to close at \u00a58,711.33.\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 \u00a5128.05 level and was supported around the \u00a5126.10 level.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling tested offers around the \u00a5145.15 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a584.70 level.\u00a0 The Chinese yuan appreciated vis-\u00e0-vis the U.S. dollar today as the greenback closed at CNY 6.8224 in the over-the-counter market, down from CNY 6.8301.<\/p>\n

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

The British pound appreciated vis-\u00e0-vis the U.S. dollar today as cable tested offers around the US$ 1.4705 level and was supported around the $1.4465 level.\u00a0\u00a0\u00a0 The U.K. Budget statement will be delivered by Chancellor Darling tomorrow and annual net borrowing may soar to \u20a4175 billion in the 2009-2010 financial year on account of the recession.\u00a0 Data released in the U.K. today saw March retail price inflation decline 0.4% y\/y, the first annual drop since 1960.\u00a0 March consumer price inflation rose 0.2% m\/m and 2.9% y\/y.\u00a0 Cable bids are cited around the US$ 1.4350 level.\u00a0 The euro weakened vis-\u00e0-vis the British pound as the single currency tested bids around the \u20a40.8815 level and was capped around the \u20a40.8915 level.<\/p>\n

Daily Market Commentary<\/strong><\/em> 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 bids around the US$ 1.2995…<\/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-1506","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1506","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=1506"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1506\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}