{"id":2793,"date":"2009-07-02T14:58:43","date_gmt":"2009-07-02T19:58:43","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2793"},"modified":"2009-07-02T14:58:43","modified_gmt":"2009-07-02T19:58:43","slug":"fundamental-outlook-at-1400-gmt-c","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/02\/fundamental-outlook-at-1400-gmt-c\/","title":{"rendered":"Fundamental Outlook at 1400 GMT"},"content":{"rendered":"

By GCI Financial <\/span><\/p>\n

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

The euro moved sharply lower vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3990 level and was capped around the $1.4155 level.\u00a0 The common currency gaved back most of yesterday\u2019s gains ahead of the long holiday weekend in the U.S.\u00a0 As expected, the European Central Bank kept monetary policy unchanged and ECB President Trichet reported interest rates remain \u201cappropriate.\u201d\u00a0 Trichet also said recent economic data indicate the global economy has reached an \u201cinflection point in the cycle\u201d and said policymakers \u201chave to remain very alert.\u201d\u00a0 He added risks to the economic outlook are \u201cbalanced\u201d and added inflation expectations are \u201canchored.\u201d Most traders walked away with the impression that official eurozone interest rates will remain unchanged for quite some time.\u00a0 The ECB will begin buying covered bonds \u2013 including mortgages and public sector debt \u2013 on 6 July as part of its quantitative easing framework.\u00a0 The euro also moved lower after Ireland\u2019s credit rating was downgraded by Moody\u2019s and after it was reported the EMU-16 unemployment rate climbed to 9.5% in May, the highest level in ten years.\u00a0 Also, eurozone producer prices were off for a tenth consecutive month in May, down 0.2% m\/m and 5.8% y\/y, the largest annual decline since at least January 1982.\u00a0 In U.S. news, it was reported that June non-farm payrolls fell by 467,000, much worse than the -325,000 forecast.\u00a0 The national unemployment rate rose to 9.5%, less than expected, but many economists continue to suggest the national unemployment rate will reach the psychologically-important 10.0% level.\u00a0 Average hourly earnings were up 2.7% y\/y, below expectations.\u00a0 Euro bids are cited around the US$ 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 \u00a595.80 level and was capped around the \u00a596.85 level.\u00a0 New Economy and Fiscal Policy minister Hayashi warned \u201cJapan may slip back into deflation if the strength of the recovery is weak and the output gap keeps falling.\u00a0 We don\u2019t want deflation to become the main scenario.\u201d Prime Minister Aso must call a general election by September and current polls show his Liberal Democratic Party of Japan trailing the opposition Democratic Party of Japan.\u00a0 Data released in Japan overnight saw the June monetary base up 6.4% y\/y.\u00a0 Vice finance minister Sugimoto said he is unaware if Group of Eight leaders will discuss a replacement of the U.S. dollar as the world\u2019s key reserve currency when policymakers convene this month.\u00a0 Notably, the yen\u2019s value on a trade-weighted basis declined to its lowest level since October 2008, trading at \u00a5114.80.\u00a0 The Nikkei 225 stock index lost 0.64% to close at \u00a59,876.15.\u00a0\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 \u00a5134.10 level and was capped around the \u00a5136.75 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5156.85 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a588.30 level. In Chinese news, the U.S. dollar moved lower vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8304 in the over-the-counter market, down from CNY 6.8331.\u00a0 Vice foreign minister He Yafei reiterated China\u2019s calls for a diversification of foreign reserves and a stable dollar.\u00a0 Group of Eight officials convene in Italy next week and may discuss China\u2019s proposal regarding a new international reserve currency.<\/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 moved sharply lower vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3990 level…<\/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-2793","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2793","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=2793"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2793\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}