{"id":2403,"date":"2009-06-09T16:20:31","date_gmt":"2009-06-09T21:20:31","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2403"},"modified":"2009-06-09T16:20:31","modified_gmt":"2009-06-09T21:20:31","slug":"fundamental-outlook-at-1400-gmt-edt-0400-46","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/09\/fundamental-outlook-at-1400-gmt-edt-0400-46\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"<p><span style=\"color: #888888;\">By GCI Fx Research<\/span><\/p>\n<p><strong>\u20ac<\/strong><\/p>\n<p>The euro moved sharply higher vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4100 figure and was supported around the $1.3850 level.\u00a0 The big story in the markets today was a decision by the U.S. Treasury that allows several U.S. banks to repay funds they borrowed under the Troubled Asset Relief Program that was inaugurated last year.\u00a0 Ten banks will be permitted to repay tens of billions of borrowed funds and try to return to some semblance of normalcy.\u00a0 The Federal Reserve has reportedly for now shelved a plan that would have potentially allowed it to issue its own debt to help absorb some inflationary pressures and drain liquidity.\u00a0 New York Federal Reserve Bank President Dudley recently said the power to issue debt would be \u201cnice to have, but not critical.\u201d Data released in the U.S. today saw April wholesale inventories off 1.4%.\u00a0 In eurozone news, European Central Bank member Noyer said it is premature to determine if the ECB\u2019s unconventional monetary policy measures enacted to stabilize the financial markets have been an overall success, but noted they \u201chave contributed to a significant reduction in various credit risk premia.\u201d Data released in Germany today saw April industrial production fall 1.9% m\/m, worse-than-expected.\u00a0 These data suggest the eurozone\u2019s largest economy is a laggard as far as the gradual, nascent economic recovery on the Continent is concerned. Euro bids are cited around the US$ 1.3435 level.<\/p>\n<p><strong>\u00a5\/ CNY<\/strong><\/p>\n<p>The yen appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested bids around the \u00a597.25 level and was capped around the \u00a598.55 level.\u00a0 Bank of Japan reported that paying 0.1% interest on excessive reserves held by financial institutions may distort the proper functioning of the market.\u00a0 The central bank\u2019s overnight call rate currently stands at 0.10% and the central bank wants to make sure banks are incentivized to not horde liquidity.\u00a0 Data released in Japan overnight saw the April leading index improve dramatically to 55.0 from 25.0 in March while the composite index improved to 76.5 from 75.5 in March.\u00a0 The Nikkei 225 stock index lost 0.80% to close at \u00a59,786.82.\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 \u00a5137.35 level and was supported around the \u00a5135.70 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 6.8344 in the over-the-counter market, down from CNY 6.8363.<\/p>\n<p><em><strong>Daily Market Commentary<\/strong><\/em> provided by\u00a0<strong><a href=\"http:\/\/gcitrading.com\/\" target=\"_blank\"><strong>GCI Financial Ltd<\/strong><\/a>.<\/strong><\/p>\n<p>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<p>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":"<p>By GCI Financial &#8211; The euro moved sharply higher vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around&#8230;<\/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-2403","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2403","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=2403"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2403\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}