{"id":3270,"date":"2009-08-07T12:05:09","date_gmt":"2009-08-07T17:05:09","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3270"},"modified":"2009-08-07T12:05:09","modified_gmt":"2009-08-07T17:05:09","slug":"fundamental-outlook-at-1400-gmt-edt-0400-66","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/07\/fundamental-outlook-at-1400-gmt-edt-0400-66\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro lost sharp ground vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4230 level and was capped around the $1.4410 level.\u00a0 The common currency sold off sharply following the release of U.S. July non-farm payrolls data that saw 247,000 workers lose their jobs last month from a positively revised -443,000 in June.\u00a0 Also, the July unemployment rate improved to 9.4% from 9.5% in June, better-than-expected, while July average hourly earnings were up 0.2% m\/m from 0.0% m\/m.\u00a0 July average hourly earnings were also up 2.5% y\/y, down from 2.7% y\/y in June, while July average weekly hours printed at 33.1, up from 33.0.\u00a0 Even though today\u2019s data evidenced an improvement in the U.S. labour market, many economists believe the unemployment rate will peak above 10.0% later this year or early next year.\u00a0 U.S. economic growth is still contracting and it must grow approximately 2.5% per year in order to accommodate new entrants into the job market.\u00a0 In eurozone news, German June industrial output was off 0.1% m\/m and 18.1% y\/y.\u00a0 French President Sarkozy will meet with the heads of a few banks next week and impress upon them the need to increase their lending activity.\u00a0 Data released in France today saw the June trade deficit widen to \u20ac4.01 billion while the German June trade surplus expanded to \u20ac12.2 billion from \u20ac9.6 billion.\u00a0 European Central Bank President Trichet reported \u201cWe’re leaving this period of free-fall, we’re still falling.\u00a0 We’re in a period which still requires a great deal of vigilance.\u00a0 We have all had to cope with exceptional situation.\u00a0 We all took decisions that were commensurate with the problems we faced. We did not do the same because the situation was not the same.\u201d\u00a0\u00a0\u00a0 Euro bids are cited around the US$ 1.3900 figure.
\n
\n\u00a5\/ CNY<\/strong><\/p>\n

The yen depreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested offers around the \u00a596.95 level and was supported around the \u00a595.05 level.\u00a0 The yen was given across the board as risk appetite returned to the market following the stronger-than-expected U.S. July jobs report.\u00a0 Data released in Japan overnight saw the July trade surplus up 127.8% y\/y at \u00a5251.21 billion during the first twenty days of July.\u00a0 Liquidity will be reduced next week in Japan next week with the beginning of the O-bon summer holiday.\u00a0 Bank of Japan\u2019s Policy Board convenes next week and is not expected to change monetary policy at this time.\u00a0 The Nikkei 225 stock index climbed 0.23% to close at \u00a510,412.09.\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 \u00a5138.55 level and was supported around the \u00a5136.50 level.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling tested offers around the \u00a5162.45 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a590.60 level. In Chinese news, the U.S. dollar gained ground vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8288 in the over-the-counter market, up from CNY 6.8283.\u00a0 Traders continue to express concern that People\u2019s Bank of China will begin to tighten monetary policy.<\/p>\n

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

The British pound lost additional ground vis-\u00e0-vis the U.S. dollar today as cable tested bids around the US$ 1.6675 level and was capped around the $1.6825 level.\u00a0 Bank of England\u2019s Monetary Policy Committee yesterday surprised the markets by expanding its bond purchase program by \u20a450 billion.\u00a0 Data released in the U.K. today saw July producer price inflation index up 0.3% m\/m and were off 1.3% y\/y.\u00a0 Core PPI was up 0.5% m\/m and 0.2% y\/y while input producer prices were off 1.4% m\/m and 12.2% y\/y.\u00a0 Cable bids are cited around the US$ 1.6485 level.\u00a0 The euro moved lower vis-\u00e0-vis the British pound as the single currency tested bids around the \u20a40.8500 figure and was capped around the \u20a40.8595 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 euro lost sharp ground vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4230 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-3270","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3270","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=3270"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3270\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}