{"id":3468,"date":"2009-08-24T16:58:21","date_gmt":"2009-08-24T21:58:21","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3468"},"modified":"2009-08-24T16:58:21","modified_gmt":"2009-08-24T21:58:21","slug":"fundamental-outlook-at-1400-gmt-edt-0400-72","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/24\/fundamental-outlook-at-1400-gmt-edt-0400-72\/","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 lower vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4280 level and was capped around the $1.4360 level.\u00a0\u00a0 The common currency failed to sustain intraday gains after it was reported that eurozone industrial new orders registered their strongest gain in nearly nineteen months in June.\u00a0 European Central Bank President Trichet was rather cautious in his remarks this weekend at the Kansas City Federal Reserve\u2019s annual Jackson Hole symposium.\u00a0 Trichet reported \u201cwe see some signs confirming that the real economy is starting to get out of the period of freefall\u201d but added this \u201cdoes not mean at all that we do not have a very bumpy road ahead of us.\u201d\u00a0 Some ECB policymakers are thought to be questioning the sustainability of the recent improvement in eurozone economic data.\u00a0 ECB\u2019s Liikanen said there is \u201cno need\u201d for the ECB to reassess its policy stance and added unemployment will rise more.\u00a0 In U.S. news, the Chicago Fed\u2019s Midwest manufacturing index improved 2.6% in July, the first monthly gain since June 2008, and was off 22.8% y\/y.\u00a0 Fed Chairman Bernanke was more optimistic than Trichet in his remarks at the Jackson Hole symposium.\u00a0 Vice Chaiman Kohn reiterated \u201cthe commitment to low rates is designed to keep inflation from falling and falling persistently below what we might want it to be for a long time.\u201d\u00a0 Data to be released in the U.S. tomorrow include the June S&P\/ Case Shiller home price index.\u00a0 Euro bids are cited around the US$ 1.3900 figure.<\/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 \u00a595.05 level and was supported around the \u00a594.25 level.\u00a0 The yen was mixed across the board as risk appetite improved somewhat, encouraging some to chase higher-yielding assets.\u00a0 A greater resumption of risk appetite could result in more demand for short yen carry trades in which the yen is used as a financing vehicle to invest in assets with greater yield spreads.\u00a0 Vice finance minister Tango reported Japan needs to limit Japanese government bond sales as much as possible.\u00a0 Tango\u2019s comments are topical because the Liberal Democratic Party of Japan may lose this weekend\u2019s general election with the Aso government conceding the LDP\u2019s stronghold on power to the rival Democratic Party of Japan.\u00a0 DPJ leader Hatoyama was on the tape earlier saying the DPJ does not plan to increase JGB issuance, contrary to public chatter that the liberal DPJ will expand public works projects.\u00a0 Bank of Japan Governor Shirakawa spoke at the Fed\u2019s Jackson Hole symposium this weekend and said monetary policy \u201cshould avoid inflating asset bubbles by keeping interest rates low for too long.\u201d\u00a0 The Nikkei 225 stock index climbed 3.35% to close at \u00a510,581.05.\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 \u00a5135.00 figure and was capped around the \u00a5136.05 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5154.80 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a588.90 level. In Chinese news, the U.S. dollar lost ground vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8267 in the over-the-counter market, down from CNY 6.8269.\u00a0 Chinese Premier Wen said the markets need to avoid being \u201cblindly optimistic\u201d about the global economic recovery and added China must maintain its \u201cmoderately loose\u201d monetary policy and \u201cactive\u201d fiscal policy.<\/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 – In U.S. news, the Chicago Fed\u2019s Midwest manufacturing index improved 2.6% in July, the first monthly gain since June 2008…<\/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-3468","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3468","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=3468"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3468\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}