{"id":2200,"date":"2009-05-29T16:06:42","date_gmt":"2009-05-29T21:06:42","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2200"},"modified":"2009-05-29T16:06:42","modified_gmt":"2009-05-29T21:06:42","slug":"fundamental-outlook-at-1400-gmt-edt-0400-41","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/05\/29\/fundamental-outlook-at-1400-gmt-edt-0400-41\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro strengthened sharply vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4165 level and was supported around the US$ 1.3925 level.\u00a0 The common currency reached its highest level since 30 December as traders dumped U.S. dollars ahead of the U.S.-Sino summit in China.\u00a0\u00a0 There is growing concern the U.S. may lose its \u201cAAA\u201d credit rating even though Moody\u2019s Investors Service maintained its credit rating this week.\u00a0 The U.S. government now owes a record US$ 63.8 trillion.\u00a0 Many data were released in the U.S. today.\u00a0 The University of Michigan final May consumer sentiment indicator improved to 68.7, up from 65.1 at the end of April.\u00a0 Also, first quarter gross domestic product contracted 5.7% while the real personal consumption expenditures index was up 1.5%.\u00a0 The 5.7% contraction was better than the 6.3% decline in the fourth quarter.\u00a0\u00a0 Additionally, the May Chicago PMI fell to 34.9 from 40.1 in April.\u00a0 In eurozone news, French unemployment worsened in April while the May flash eurozone inflation rate was 0.0% y\/y, off 0.6% m\/m.\u00a0 EMU-16 April private sector loan growth eased to 2.4% from 3.2% in March while the annual M3 money supply growth rate was off to 4.9% in April from 5.0% in March.\u00a0 European Central Bank member Draghi said the chances of eurozone deflation \u201cnow appear slight.\u201d\u00a0 Other data saw German April retail sales climb +0.5% m\/m and fall 0.8% y\/y.\u00a0 Euro bids are cited around the US$ 1.3435 level.<\/p>\n

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

The yen appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested bids around the \u00a595.20 level and was capped around the \u00a597.00 figure.\u00a0 Many data were released in Japan overnight.\u00a0 April construction orders were off 25.9% y\/y to \u00a5562.8 billion while the trade deficit printed at \u00a524.62 billion between 1 \u2013 10 May.\u00a0 Also, April industrial output was up 5.2% m\/m and off 31.2% y\/y.\u00a0 Other data saw April core consumer price inflation off 0.1% y\/y, consistent with expectations.\u00a0 Bank of Japan\u2019s Policy Board is expected to keep its monetary policy unchanged for the foreseeable future, especially after upgrading its assessment of the economy earlier this week.\u00a0 The Nikkei 225 yesterday stock index climbed 0.75% to close at \u00a59,522.50.\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 \u00a5134.25 level and was capped around the \u00a5135.70 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5153.25 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested offers around the \u00a588.90 level. In Chinese news, the U.S. dollar closed at CNY 6.8273 in the over-the-counter market.\u00a0 Treasury Secretary Geithner travels to China this weekend and meets with leading Chinese officials on Monday.\u00a0 Treasury officials said the Obama administration is \u201cattuned to the interests of our investors and plan to listen closely to what they have to say.\u201d The Chinese government has recently been critical of the effects of U.S. policy and how they impact the value of China\u2019s massive foreign reserves, about 70% of which are said to be denominated in U.S. dollars.\u00a0 The Treasury also said the \u201cU.S. dollar will continue to play a very important role for a very long time.\u201d<\/p>\n

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

The British pound appreciated sharply vis-\u00e0-vis the U.S. dollar today as cable tested offers around the US$ 1.6195 level and was supported around the $1.5915 level.\u00a0 Data released in the U.K. today saw May Nationwide housing prices rise 1.2% and fall 11.3% y\/y.\u00a0 Also, May GfK NOP consumer confidence was steady at -27, unchanged from April.\u00a0 Cable bids are cited around the US$ 1.5535 level.\u00a0 The euro appreciated vis-\u00e0-vis the British pound as the single currency tested offers around the \u20a40.8800 figure and was supported around the \u20a40.8705 level.<\/p>\n

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

The Swiss franc appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested bids around the CHF 1.0655 level and was capped around the CHF 1.0860 level.\u00a0 Data released in Switzerland today saw the May KOF leading indicator remained unchanged at -1.86.\u00a0 U.S. dollar offers are cited around the CHF 1.0975 level.\u00a0 The euro and British pound weakened vis-\u00e0-vis the Swiss franc as the crosses tested bids around the CHF 1.5075 and CHF 1.7150 levels, respectively.<\/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 strengthened sharply vis-\u00e0-vis the U.S. dollar today as the single currency tested offers…<\/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-2200","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2200","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=2200"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2200\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}