{"id":1713,"date":"2009-05-01T15:04:34","date_gmt":"2009-05-01T20:04:34","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1713"},"modified":"2009-05-01T15:04:34","modified_gmt":"2009-05-01T20:04:34","slug":"fundamental-outlook-at-1400-gmt-edt-0400-27","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/05\/01\/fundamental-outlook-at-1400-gmt-edt-0400-27\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro moved higher vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3325 level and was supported around the US$ 1.3220 level.\u00a0\u00a0 Risk appetite returned to the market ahead of Monday\u2019s release of banks\u2019 stress tests results in the U.S.\u00a0 There is speculation that Citigroup and Bank of America will be strongly encouraged to raise additional capital by the U.S. Treasury and there are whispers that four other U.S. banks may be forced to seek additional capital.\u00a0 Data released in the U.S. today saw the April ISM manufacturing index print at 40.1, up from 36.3 in March and above expectations.\u00a0 The prices and employment sub-indices also improved.\u00a0 Additionally, March factory orders were off 0.9%, March building permits were upwardly revised to -8.5%, and final April University of Michigan consumer sentiment improved to 65.1 from 57.3 in March.\u00a0 In eurozone news, European markets were closed for the May Day holiday.\u00a0 The European Central Bank is largely expected to reduce its main refinancing rate target by 25bps next Thursday and may announce some quantitative easing measures.\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 \u00a599.55 level and was supported around the \u00a598.50 level.\u00a0\u00a0 Data released in Japan overnight evidenced a dramatically weakening economy.\u00a0 First, unemployment climbed to its highest level in four years, printing at 4.8%.\u00a0 Second, the March core consumer price index fell 0.1%, the first year-over-year decline since late 2007 and these data evidence a greater potential of a deflationary spiral.\u00a0 Collectively, these data suggest Bank of Japan may need to provide additional monetary stimuli and this will likely increase pressure on the government to provide more fiscal stimuli.\u00a0 The Nikkei 225 yesterday stock index climbed 1.69% to close at \u00a58,977.37.\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 \u00a5132.35 level and was supported around the \u00a5130.30 level.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling bstested offers around the \u00a5148.30 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a587.60 level.\u00a0 In Chinese news, the U.S. dollar ended at CNY 6.8230 in the over-the-counter market.<\/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$ 1.4935 level and was supported around the $1.4750 level.\u00a0 U.K. markets were opened today during the May Day holiday but will be closed on Monday.\u00a0 Data released in the U.K. today saw the April CIPS manufacturing survey rally to 42.9 from 39.5 in March, an indication the manufacturing sector\u2019s weakness may be abating.\u00a0 Other data saw March total consumer lending growth reach a new all-time low as the increase in mortgage lending nearly halved from February\u2019s level.\u00a0 In contrast, however, mortgage approvals increased for the fourth consecutive month.\u00a0 Total consumer lending expanded by \u20a4885 million in March and mortgage lending expanded by \u20a4757 million.\u00a0 Also, March M4 money supply growth printed at 0.2% m\/m and 17.8% y\/y.\u00a0 Cable bids are cited around the US$ 1.4735 level.\u00a0 The euro moved lower vis-\u00e0-vis the British pound as the single currency tested bids around the \u20a40.8885 level and was capped around the \u20a40.8985 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 moved higher vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3325…<\/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-1713","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1713","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=1713"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1713\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}