{"id":3371,"date":"2009-08-17T14:09:52","date_gmt":"2009-08-17T19:09:52","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3371"},"modified":"2009-08-17T14:09:52","modified_gmt":"2009-08-17T19:09:52","slug":"fundamental-outlook-at-1400-gmt-edt-0400-69","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/17\/fundamental-outlook-at-1400-gmt-edt-0400-69\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro came off sharply vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4045 level and was capped around the $1.4195 level.\u00a0 The common currency extended recent losses on account of stronger than expected U.S. economic data and a pullback in U.S. equity prices.\u00a0 Data released in the U.S. today saw the Federal Reserve Bank of New York\u2019s Empire State manufacturing index improve to 12.1 from -0.6 in July.\u00a0 Other data saw the August NAHB housing market index print at +18, up from +17 in July, while June net long-term TIC flows printed at US$ 90.7 billion, much stronger than expected and above the revised May print of \u2013US$ 19.4 billion.\u00a0 In contrast, however, total net TIC flows came in at \u2013US$ 31.2 billion, an improvement from the revised \u2013US$ 65.86 billion May print but below the US$ 23.0 billion forecast.\u00a0 Global equity markets were given today after Asian markets suffered a sell-off.\u00a0 The Federal Reserve today extended an emergency program by three to six months called the Term Asset-Backed Securities Loan Facility (TALF) that is designed to cushion the commercial real estate market.\u00a0 In eurozone news, the EMU-16 trade surplus registered a two-year high in June.\u00a0 European Central Bank member Weber reported the German economy is likely to perform better than expected in the third quarter.\u00a0 The ECB today reported the Eurosystem has purchased \u20ac7 billion in covered bonds.\u00a0 Euro bids are cited around the US$ 1.3900 figure.<\/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 \u00a594.20 level and was capped around the \u00a594.85 level.\u00a0 The yen was up strongly across the board as a downturn in global equities dampened demand for higher-yielding currencies.\u00a0 Data released in Japan overnight saw Q2 gross domestic product expand 0.9% q\/q, less than expected but the first improvement since Q1 2008.\u00a0 The improvement means Japan is no longer in a technical recession but many economists believe economic growth may slow to an annualized 2.9% pace in the three months ending 30 September.\u00a0 On the political front, Prime Minister Aso\u2019s Liberal Democratic Party is likely to lose the upcoming lower house election to the Democratic Party of Japan.\u00a0 Policymakers including Bank of Japan Governor Shirakawa have warned Japan\u2019s domestic demand is likely to remain very weak.\u00a0 The Nikkei 225 stock index lost 3.10% to close at \u00a510,268.61.\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 \u00a5132.50 level and was capped around the \u00a5134.50 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5153.45 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a587.20 level. In Chinese news, the U.S. dollar gained ground vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8332 in the over-the-counter market, up from CNY 6.8314.\u00a0 Chinese equities realized their worst decline since November on account of declining commodities prices and concerns that People\u2019s Bank of China will tighten liquidity measures.<\/p>\n

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

The British pound extended recent losses vis-\u00e0-vis the dollar today as cable tested bids around the US$ 1.6275 level and was capped around the $1.6515 level.\u00a0 Bank of England Monetary Policy Committee member Sentance reported the U.K. economy is expected to return to economic growth in the second half of the year and said global economic growth will in part depend on Asian economies.\u00a0 Data released in the U.K. overnight saw the Rightmove August house price index off 2.2% m\/m and 3.1% y\/y.\u00a0 Cable is now off seven big figures over the past ten days.\u00a0 Sterling remains pressured by BoE\u2019s announcement that it is expanding its bond-buying operations by \u20a450 billion.\u00a0 Sterling is also being pressured by increased borrowing and deficit spending.\u00a0 Cable bids are cited around the US$ 1.5975 level.\u00a0 The euro moved higher vis-\u00e0-vis the British pound as the single currency tested offers around the \u20a40.8645 level and was supported around the \u20a40.8585 level.<\/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 – Data released in the U.S. today saw the Federal Reserve Bank of New York\u2019s Empire State manufacturing index improve…<\/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-3371","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3371","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=3371"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3371\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}