{"id":3408,"date":"2009-08-19T14:45:41","date_gmt":"2009-08-19T19:45:41","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3408"},"modified":"2009-08-19T14:45:41","modified_gmt":"2009-08-19T19:45:41","slug":"fundamental-outlook-at-1400-gmt-edt-0400-70","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/19\/fundamental-outlook-at-1400-gmt-edt-0400-70\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro moved higher vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4180 level and was supported around the $1.4085 level.\u00a0 Weakness in global equity markets capped the common currency\u2019s upside potential today but North American dealers chipped away at the $1.42 handle.\u00a0 Data released in the U.S. today saw MBA mortgage applications improve +5.6% in their latest week, consistent with the recent uptick in the U.S. housing market.\u00a0 Data to be released in the U.S. tomorrow include weekly initial jobless claims and continuing jobless claims.\u00a0 In eurozone news, European Central Bank member Weber reported the central bank will exit its quantitative easing measures \u201conce the economic recovery becomes sustainable and the situation on financial markets gets sufficiently stable.\u201d\u00a0 Weber also expressed concern regarding the strength of banks and there is a growing concern of credit bottlenecks in the banking sector over the next few months.\u00a0 Furthermore, he noted the improvement in German Q2 GDP was on account of fiscal stimulus and a looser monetary policy.\u00a0 Data released in the eurozone today saw June construction output off 1.1% m\/m and 8.8% y\/y while German July annual producer price inflation registered its steepest decline since 1949, evidence that factory gate prices may not be contributing to consumer price inflation in Europe\u2019s largest economy.\u00a0 Euro bids are cited around the US$ 1.3900 figure.
\n
\n\u00a5\/ CNY<\/strong><\/p>\n

The yen appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested bids around the \u00a593.75 level and was capped around the \u00a594.95 level.\u00a0 The pair moved lower in concert with widespread yen strength after Chinese equity markets tumbled again, precipitating another global sell-off in Asian and European markets.\u00a0 The yen also strengthened ahead of the Japanese general election on 30 August. The\u00a0 Democratic Party of Japan looks poised to defeat the Aso government and long-incumbent Liberal Democratic Party.\u00a0 Market chatter suggests a DPJ government may be more tolerant of a stronger yen, and yesterday\u2019s news suggested a DPJ government may call on Bank of Japan to purchase more Japanese government bonds.\u00a0 BoJ Governor Shirakawa will attend the Kansas City Fed\u2019s Jackson Hole Symposium from 20-24 August.\u00a0\u00a0\u00a0 The Nikkei 225 stock index lost 0.79% to close at \u00a510,204.00.\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 \u00a5132.15 level and was supported around the \u00a5134.50 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested offers around the \u00a5153.60 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a587.15 level. In Chinese news, the U.S. dollar lost ground vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8320 in the over-the-counter market, up from CNY 6.8309.<\/p>\n

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

The British pound came off vis-\u00e0-vis the U.S. dollar today as cable tested bids around the US$ 1.6375 level and was capped around the US$ 1.6590 level.\u00a0 Sterling was sharply lower earlier in the European session after minutes from Bank of England Monetary Policy Committee\u2019s August deliberations were released.\u00a0 The minutes revealed that Governor King and two other members of the MPC voted in the minority for a \u20a475 billion increase in the BoE\u2019s quantitative easing program, an amount that would have expanded the entire facility to \u20a4225 billion.\u00a0 The MPC voted 6-to-3 to enact a \u20a450 billion expansion, itself larger than many traders expected.\u00a0\u00a0 Today\u2019s minutes suggest the BoE may be further away from unwinding its monetary stimuli than previously believed.\u00a0 Data released in the U.K. today saw the August CBI industrial trends survey improve to -54 from -59, rendering industrial output at its best level since June 2008.\u00a0 Cable bids are cited around the US$ 1.6215 level.\u00a0 The euro gained ground vis-\u00e0-vis the British pound as the single currency tested offers around the \u20a40.8625 level and was supported around the \u20a40.8530 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 – The yen appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested bids around the \u00a593.75 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-3408","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3408","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=3408"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3408\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}