{"id":2301,"date":"2009-06-03T17:43:50","date_gmt":"2009-06-03T22:43:50","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2301"},"modified":"2009-06-03T17:43:50","modified_gmt":"2009-06-03T22:43:50","slug":"fundamental-outlook-at-1400-gmt-edt-0400-44","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/03\/fundamental-outlook-at-1400-gmt-edt-0400-44\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro depreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4110 level and was capped around the US$ 1.4335 level.\u00a0 Profit-taking ensued following several days of U.S. dollar selling pressure that stemmed from growing concern the U.S.\u2019s fiscal deficits are expanding too rapidly.\u00a0 Federal Reserve Chairman Bernanke testified and said \u201cMaintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance\u2026Unless we demonstrate a strong commitment to fiscal sustainability in the longer run, we will have neither financial stability nor healthy economic growth\u2026 Certainly, our economy and financial markets face extraordinary near-term challenges, and strong and timely actions to respond to those challenges are necessary and appropriate.\u201d\u00a0 Kansas City Fed President Hoenig was on the tape late in the day saying \u201cIf we fail to bring policy into balance, we will have significant inflationary pressure.\u201d\u00a0 U.S. Treasury yields have backed up significantly in recent weeks, possibly signifying the market\u2019s pessimism over the perilous state of U.S. finances.\u00a0 Data released in the U.S. today saw May ADP private-sector employment off 532,000, worse than April\u2019s 491,000 decline.\u00a0 Also, the May U.S. ISM non-manufacturing index was up nominally to 44.0 from 43.7 in April.\u00a0 Additionally, April new factory orders were up 0.7% m\/m and off 22.8% y\/y with the ex-transportation component up 0.1% m\/m and off 22.1% y\/y.\u00a0 In eurozone news, the European Commission is working on a proposal to allocate \u20ac19 billion to create new jobs.\u00a0 EMU-16 producer prices declined for their ninth consecutive month in April, off 1.0% m\/m and 4.6% y\/y.\u00a0 Moreover, EMU-16 GDP was unrevised at -2.5% q\/q in Q1.\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 \u00a596.40 level and was supported around the \u00a595.35 level.\u00a0 Bank of Japan Policy Board member Kamezaki indicated there\u2019s a greater chance the Japanese economy will perform worse-than-expected instead of better-than-expected.\u00a0 Still, Kamekazi reported the loose monetary conditions could result in the economy overheating.\u00a0 BoJ officials will likely keep monetary policy unchanged for the foreseeable future.\u00a0 Finance minister Yosano yesterday reported the economy likely hit bottom in Q1 and Kamekazi today warned Japan\u2019s consumer price index could decline even more sharply in the summer, possibly as much as 2%.\u00a0 The Nikkei 225 stock index climbed 0.38% to close at \u00a59,741.66.\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 \u00a5135.30 level and was capped around the \u00a5138.00 figure.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5155.70 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a589.15 level. In Chinese news, the U.S. dollar strengthened vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8299 in the over-the-counter market, up from CNY 6.8298.<\/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 Fx Research \u20ac The euro depreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4110 level and was capped around the US$ 1.4335 level.\u00a0 Profit-taking ensued following several days of U.S. dollar selling pressure that stemmed from growing concern the U.S.\u2019s fiscal deficits are expanding too rapidly.\u00a0 … <\/p>\n

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