{"id":3341,"date":"2009-08-13T16:40:19","date_gmt":"2009-08-13T21:40:19","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3341"},"modified":"2009-08-13T16:40:19","modified_gmt":"2009-08-13T21:40:19","slug":"fundamental-outlook-at-1400-gmt-edt-0400-68","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/13\/fundamental-outlook-at-1400-gmt-edt-0400-68\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro gained ground vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4325 level and was supported around the $1.4180 level.\u00a0 The common currency improved on weaker-than-expected U.S. July retail sales data that saw a 0.1% decline, down sharply from a revised reading of +0.8%, while the ex-autos component was off 0.6%, down from the revised June reading of 0.5%.\u00a0 Also, the July import price index was off 0.7% m\/m, down significantly from the 2.6% prior reading, and off 19.3% y\/y.\u00a0\u00a0 Other data saw weekly initial jobless claims print at 558,000, up 4,000, whole continuing jobless claims were off 141,000 to 6.202 million.\u00a0 Other data saw June business inventories off 1.1%.\u00a0 July consumer price inflation will be released tomorrow.\u00a0 The euro was also supported by stronger than expected eurozone economic data that saw EMU-16 gross domestic product fall a mere 0.1% in the second quarter, up dramatically from a 2.5% decline in the first quarter.\u00a0 Notably, both the German and French economies notched growth of 0.3%, suggesting the two largest eurozone economies are no longer in a technical recession.\u00a0 These data may prompt the European Central Bank to begin unwinding its expansionary monetary policy measures earlier than previously believed.\u00a0 Eonia interest rate futures are now predicting a 25bps interest rate hike to 1.25% by May 2010, while overnight index swaps indicated the ECB will raise its benchmark rate in February 2010.\u00a0 Euro bids are cited around the US$ 1.3900 figure.<\/p>\n

\u00a5\/ CNY
\n<\/strong>
\nThe yen appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested bids around the \u00a595.05 level and was capped around the \u00a596.50 level.\u00a0 The yen moved higher as the U.S. dollar was given across the board on increasing risk appetite and a positive day for U.S. equities markets.\u00a0 Yesterday, Bank of Japan Governor Shirakawa reported a \u201cbuilt-in mechanism\u201d is required to end the central bank\u2019s unconventional monetary policy and ensure smooth functioning of markets.\u00a0 He specifically reported \u201cIt would be important to have an appropriate built-in exit mechanism which reduces the incentive to use the (unconventional fund provision) facility as market functioning recovers,” so that market players don’t become reliant on those steps and hurt the market’s functioning.\u201d\u00a0 The central bank, like other central banks, continues to discuss an exit strategy from its significant amount of monetary stimuli.\u00a0 Shirakawa was in the news again today for criticizing economists\u2019 suggestion that the central bank should establish an inflation target to overcome deflation.\u00a0 The central bank\u2019s monthly report of recent economic and financial developments was released yesterday in which the BoJ reported \u201ceconomic conditions have stopped worsening\u201d but noted \u201cbusiness fixed investment has declined substantially\u201d and \u201cprivate consumption has remained generally weak.\u201d\u00a0 The Nikkei 225 stock index climbed 0.79% to close at \u00a510,517.91.\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 \u00a5135.55 level and was capped around the \u00a5137.85 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5157.35 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a589.95 level. In Chinese news, the U.S. dollar lost ground vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8306 in the over-the-counter market, down from CNY 6.8321.<\/p>\n

Daily Market Commentary<\/strong><\/em> provided by<\/em><\/strong> GCI 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 ground vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US…<\/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-3341","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3341","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=3341"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3341\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}