{"id":2938,"date":"2009-07-15T14:20:56","date_gmt":"2009-07-15T19:20:56","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2938"},"modified":"2009-07-15T14:20:56","modified_gmt":"2009-07-15T19:20:56","slug":"fundamental-outlook-at-1400-gmt-edt-0400-59","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/15\/fundamental-outlook-at-1400-gmt-edt-0400-59\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro moved sharply higher vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4120 level and was supported around the $1.3960 level.\u00a0 Strong gains in U.S. equity markets added to the common currency\u2019s ascent today.\u00a0 Data released in the U.S. today saw the June headline consumer price index print at +0.7% m\/m, up from, +0.1% m\/m in May, while the ex-food and energy component was up +0.2% m\/m, up from +0.1% m\/m in May.\u00a0 Also, headling CPI was off 1.4% y\/y with the ex-food and energy component up 1.7% y\/y, down from +1.8% y\/y in May.\u00a0 Also, the New York Federal Reserve\u2019s Empire State manufacturing index improved to -0.55 in July from -9.41 in June.\u00a0 Also, June industrial production improved to -0.4% from a revised prior reading of -1.2% while June capacity utilization printed at 68.0%, above estimates but below the revised May reading of 68.2%.\u00a0 Minutes from the Federal Reserve\u2019s 24 June Federal Open Market Committee meeting will be released later today and traders will pay close attention to any indication that policymakers are contemplating an exit strategy to the massive amount of monetary stimuli in the markets.\u00a0 There is also speculation the Fed could make a further announcement about its Treasury buying operations.\u00a0 In eurozone news, EMU-16 June consumer price inflation fell 0.1%, down from a flat reading in May.\u00a0 European Central Bank President Trichet reported the central bank remains an \u201canchor of stability and confidence in challenging times.\u201d Euro bids are cited around the US$ 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 \u00a594.05 level and was supported around the \u00a593.25 level.\u00a0 As expected, Bank of Japan kept its monetary policy unchanged overnight with the overnight call rate target unchanged at 0.10%, a unanimous vote. Notably, the central bank extended its foreign exchange swap line with the Federal Reserve until 1 February 2010.\u00a0 BoJ Governor Shirakawa signaled a possible end to the central bank\u2019s emergency credit programs, reporting \u201cWe decided to extend the measures by three months this time, rather than six months, because financial conditions are improving and we expect this improvement to continue.\u00a0 If this situation develops further, we will end (the programs).\u201d\u00a0 The BoJ decided to extend its policy of purchasing bonds from financial institutions and providing them with unlimited loans to 31 December from 30 September.\u00a0 BoJ\u2019s median forecast for real gross domestic product growth for next fiscal year was changed to -3.4%, worse than the previous -3.1% decline.\u00a0 The core consumer price index forecast was upgraded to -1.3% from -1.5%. Shirakawa also indicated banks remain reluctant to lend to small companies and added financial conditions are improving but remain severe.\u00a0 The Nikkei 225 stock index climbed 0.08% to close at \u00a59,269.25.\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 \u00a5132.75 level and was supported around the \u00a5130.45 level.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling tested offers around the \u00a5154.80 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a587.55 level. In Chinese news, the U.S. dollar weakened vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8308 in the over-the-counter market, down from CNY 6.8310.\u00a0 China reported its foreign reserves expanded US$ 42 billion in June.<\/p>\n

\u20a4<\/strong><\/p>\n

The British pound appreciated vis-\u00e0-vis the U.S. dollar today as cable tested offers around the US$ 1.6465 level and was supported around the US$ 1.6300 figure.\u00a0 Data released in the U.K. today saw the June claimant count rise 23,800, down from May\u2019s downwardly revised 30,800.\u00a0 ILO\u2019s measure of unemployment rose 281,000 to 2.38 million in the three months to May, the highest quarterly reading since at least 1971.\u00a0 Bank of England Deputy Governor Bean denied reports the BoE has paused its quantitative easing program following last week\u2019s decision to not increase the \u20a4125 billion asset purchase program.\u00a0 Former MPC member Blanchflower reported the BoE should have expanded the program last week.\u00a0 Cable bids are cited around the US$ 1.6185 level.\u00a0 The euro moved higher vis-\u00e0-vis the British pound as the single currency tested offers around the \u20a40.8595 level and was supported around the \u20a40.8545 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 British pound appreciated vis-\u00e0-vis the U.S. dollar today as cable tested offers around the US$ 1.6465 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-2938","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2938","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=2938"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2938\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}