{"id":2214,"date":"2009-06-01T14:19:28","date_gmt":"2009-06-01T19:19:28","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2214"},"modified":"2009-06-01T14:19:28","modified_gmt":"2009-06-01T19:19:28","slug":"fundamental-outlook-at-1400-gmt-edt-0400-42","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/01\/fundamental-outlook-at-1400-gmt-edt-0400-42\/","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 offers around the US$ 1.4245 level and was supported around the US$ 1.4100 figure.\u00a0 The common currency added on to recent gains and reached its highest level since 29 December 2008.\u00a0 Data released in the U.S. today saw April personal spending decrease 0.1% m\/m while April personal income was up 0.5% m\/m, an indication that consumption is not keeping up with income.\u00a0 It was also reported that April core U.S. personal consumption expenditures were up 0.3% m\/m and 1.9% y\/y.\u00a0 Other data saw the U.S. ISM May manufacturing index print at 42.8, up from 40.1 in April.\u00a0 U.S. equity markets were up sharply with the Dow posting more than a 200-point surge through mid-day U.S. trading.\u00a0 In eurozone news, the EMU-16 May manufacturing PMI index improved to 40.7 from 36.8 in April, the largest rise since at least June 1997 but still below the \u201cboom-or-bust\u201d 50.0 level, evidencing an ongoing contraction in the sector.\u00a0 Germany\u2019s PMI manufacturing level printed at a stronger-than-expected 39.6 in May, up from April\u2019s print of 35.4.\u00a0 The EMU-16 print represented a seven-month high.\u00a0 Other data released today saw April construction spending climb 0.8% m\/m.\u00a0 The EMU-16 April unemployment rate will be released tomorrow.\u00a0 Euro bids are cited around the US$ 1.3435 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 \u00a596.75 level and was supported around the \u00a594.45 level.\u00a0 The yen was firmly given across the board as risk appetite strengthened and traders moved into currencies with higher-yielding assets.\u00a0 There has not been much verbal intervention from Japanese monetary officials and there is little expectation that actual intervention will materialize now.\u00a0 Bank of Japan is expected to keep monetary policy unchanged for foreseeable future, especially after the central bank and government upgraded their respective assessments of the economy one week ago.\u00a0 The Nikkei 225 yesterday stock index rallied 1.63% to close at \u00a59,677.75. 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 \u00a5137.25 level and was supported around the \u00a5133.90 level.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling tested offers around the \u00a5159.15 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a590.45 level. In Chinese news, the U.S. dollar weakened vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8257 in the over-the-counter market, down from CNY 6.8273.\u00a0 U.S. Treasury Secretary Geithner is meeting Chinese officials in China and said China\u2019s U.S. dollar assets are \u201cvery safe,\u201d reiterating the U.S. believes in a strong U.S. dollar.\u00a0 Geithner also said the rise in U.S. yields reflect \u201can improvement in confidence\u201d whereas many traders believe the run-up in yields reflects a worsening of the U.S. fiscal outlook.<\/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$ 1.6495 level and was supported around the $1.6160 level.\u00a0 Cable reached its highest level since 30 October 2008 as traders continued their pursuit of higher-yielding assets.\u00a0 Data released in the U.K. today saw May manufacturing PMI improve to 45.4 from 43.1 in April, exceeding forecasts but the fourteenth consecutive month of contraction.\u00a0 Also, Hometrack May house prices were steady, the first time in twenty months they have not declined.\u00a0 Prime Minister Brown indicated he will not step down regardless of the results of next week\u2019s European and local elections.\u00a0 Brown also supported Chancellor of the Exchequer Darling who may have inadvertently gotten involved in the pay scandal impacting many members of Parliament.\u00a0 Cable bids are cited around the US$ 1.5535 level.\u00a0 The euro depreciated vis-\u00e0-vis the British pound as the single currency tested bids around the \u20a40.8615 level and was capped around the \u20a40.8740 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 offers around…<\/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-2214","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2214","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=2214"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2214\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}