{"id":18986,"date":"2011-02-02T08:25:03","date_gmt":"2011-02-02T13:25:03","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=18986"},"modified":"2011-02-02T08:25:03","modified_gmt":"2011-02-02T13:25:03","slug":"forex-daily-market-commentary-207","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/02\/02\/forex-daily-market-commentary-207\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

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

Fundamental Outlook at \t\t\t0800 GMT (EDT + 0400)<\/strong><\/p>\n

USD<\/span><\/em><\/strong><\/p>\n

The dollar failed to claw back any of its recent losses during the \t\t\tAsia session. EURUSD traded 1.3813-1.3862, and USDJPY 81.31-81.60. \t\t\tUS equities closed up over 1% and Treasury yields pushed higher. The \t\t\tmanufacturing ISM index rose much higher than expected to 60.8 in \t\t\tJanuary versus consensus 58.0. The report included increases in the \t\t\tcomponents most directly indicative of faster growth, with the \t\t\temployment index, the new orders index, and the production index all \t\t\tposting gains. All in all, the ISM report showed the trend in \t\t\tmanufacturing output growth (and hiring) rising solidly at the \t\t\tbeginning of 2011. The strength in the ISM index is consistent with \t\t\tour economists’ forecast for real GDP growth to pick up to a 4.2% \t\t\tannual rate in Q1 from 3.2% in Q4. But with labour data ahead, \t\t\tmarket participants do not appear to want to cheer the ongoing US \t\t\trecovery just yet. The ADP employment change does have a reasonable \t\t\tcorrelation to payrolls data. However, the last ADP print conflicted \t\t\twith the official non-farm payrolls release and wintry weather could \t\t\tadd more volatility to the payrolls data this time around.
\n EUR<\/span><\/em><\/strong><\/p>\n

Manufacturing PMIs across the Eurozone were strong, with Germany, \t\t\tItaly and France all beating consensus. The EU composite indicator \t\t\twas equally positive, although there is substantial country \t\t\tdivergence between the larger economies and the peripheral nations. \t\t\tBut with the indicator near the 2006 high, a potential turning point \t\t\tmay be at hand. The Eurozone unemployment rate fell for the first \t\t\ttime since 2007, to 10.0%, in line with UBS estimates.
\nSpanish Economy Secretary Campa is confident that Eurozone leaders \t\t\twill reach a deal on improving the financial stability facility and \t\t\tsaid recent market calm does not remove the need for a more \t\t\teffective facility.
\n JPY<\/span><\/em><\/strong><\/p>\n

BoJ Board member Kamezaki said that rapid FX moves are undesirable, \t\t\tbut that the yen’s appreciation has subsided somewhat from the sharp \t\t\tgains that have been seen in the past.
\n GBP<\/span><\/em><\/strong><\/p>\n

Manufacturing PMI in the UK rose to 62.0, the highest level since \t\t\trecords began in 1992. Mortgage approvals fell in December, but this \t\t\twas largely due to the adverse weather conditions and sterling \t\t\treacted positively to the PMI data primarily.
\n CHF<\/span><\/em><\/strong><\/p>\n

Swiss data was mixed with a disappointing retail sales number but a \t\t\tvery strong PMI print. Retail sales fell in December by -0.4% y\/y \t\t\tversus November’s reading of +2.5%. The PMI was 60.50 versus \t\t\tconsensus at 59.2.
\nSNB Vice President Jordan did not comment on monetary policy but \t\t\tagain said that the Swiss franc has massively appreciated and poses \t\t\ta risk to growth
\n AUD<\/span><\/em><\/strong><\/p>\n

Australia is bracing itself for the arrival of a category 5 cyclone \t\t\ttoday. Queensland Premier Bligh said it could be “catastrophic”.
\n CAD<\/span><\/em><\/strong><\/p>\n

BoC Senior Deputy Governor Macklem said a strong Canadian dollar \t\t\tcould jeopardize the export recovery but at the same time said it \t\t\twould be a “risky business model” to assume the Canadian dollar \t\t\twould weaken.<\/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":"

The dollar failed to claw back any of its recent losses during the Asia session. EURUSD traded 1.3813-1.3862, and USDJPY 81.31-81.60. US equities closed up over 1% and Treasury yields pushed higher. The manufacturing ISM index rose much higher…<\/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-18986","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/18986","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=18986"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/18986\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=18986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=18986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=18986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}