{"id":2511,"date":"2009-06-16T17:45:12","date_gmt":"2009-06-16T22:45:12","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2511"},"modified":"2009-06-16T17:45:12","modified_gmt":"2009-06-16T22:45:12","slug":"2511","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/16\/2511\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro gained moderate ground-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3930 level and was supported around the $1.3750 level.\u00a0 European Central Bank policymaker Mersch reported the eurozone economy is likely to return to positive economic growth \u201csometime in the middle of\u201d 2010.\u00a0 ECB member Weber said \u201cmore (monetary) measures are not needed\u201d at this time and added liquidity measures are continuing to improve.\u00a0 ECB member Draghi said it is too soon for policymakers to unwind their massive stimuli but added policymakers should be crafting their \u201cexit strategies\u201d now. Similarly, ECB member Ordonez reported a failure to absorb liquidity could \u201cput the global economy at the end of a depressive spiral of grave consequences.\u201d\u00a0 Data released in the eurozone today saw the annual EMU-16 inflation rate decline to a record low of 0% in May while the monthly increase slowed to +0.1% from +0.4% in April.\u00a0 It was also reported that EMU-16 Q1 labour costs were up 3.7% y\/y, down from a record 4.0% pace in Q4 2009 while the German June ZEW economic expectations index improved to 44.8 from 31.1 in May.\u00a0 Other big news in the eurozone today saw the ECB confirm the eurozone\u2019s largest banks are facing additional write-downs of US$ 283 billion by the end of 2010.\u00a0 In U.S. news, data released in the saw May housing starts climb 17.2% m\/m to an annualized 532,000 rate while May building permits were up 7.5% m\/m, their third consecutive increase.\u00a0 These data suggest the U.S. housing market remains on the mend but with massive inventories of unsold homes still on the market and rising mortgage interest rates, the upside in the sector is limited.\u00a0 In contrast to the rosy housing data, May industrial production was off 1.1% m\/m with capacity utilization lower at 68.3%.\u00a0 The American Bankers Association today reported the economic recession should abate in the third quarter.\u00a0 Additional data saw May producer price inflation climb 0.2% m\/m, less than the 0.6% print that economists expected, and down 5% y\/y.\u00a0 Core PPI was off 0.1% m\/m, the first decline since October 2005.\u00a0\u00a0\u00a0\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 \u00a596.05 level and was capped around the \u00a597.90 level.\u00a0 Finance minister Yosano verbally intervened to support the U.S. dollar today, indicating \u201cMy thinking about the US economy or the world standard currency – the dollar – or my firm confidence in them, isn’t shaken at all.\u201d\u00a0 Yosano intimated Tokyo has no plans to sell the U.S. dollar.\u00a0 Bank of Japan\u2019s Policy Board meeting ended with little fanfare.\u00a0 The central bank kept its overnight call rate target unchanged at 0.10%.\u00a0 The Nikkei 225 stock index lost 1.74% to close at \u00a510,039.67.\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 \u00a5132.70 level and was capped around the \u00a5135.35 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5156.45 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a588.10 level. In Chinese news, the U.S. dollar weakened vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8330 in the over-the-counter market, down from CNY 6.8353.<\/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 gained moderate ground-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3930…<\/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-2511","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2511","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=2511"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2511\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}