{"id":3519,"date":"2009-08-26T15:54:35","date_gmt":"2009-08-26T20:54:35","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3519"},"modified":"2009-08-26T15:54:35","modified_gmt":"2009-08-26T20:54:35","slug":"fundamental-outlook-at-1400-gmt-edt-0400-74","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/26\/fundamental-outlook-at-1400-gmt-edt-0400-74\/","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$ 1.4205 level and was capped around the $1.4350 level.\u00a0 Data released in the U.S. today saw July headline durable goods orders print at 4.9%, up from a revised -1.3% in June, while the ex-transportation component was up +0.8%, below forecasts and below the strong June revision of +2.5%.\u00a0 Additionally, MBA mortgage applications expanded 7.5%, up from the previous reading of 5.6%.\u00a0 Moreover, July new home sales were up an annualized 433,000, exceeding forecasts and the positive June revision of 395,000.\u00a0 This 9.6% m\/m increase in housing data is consistent with other numbers released recently including yesterday\u2019s Case-Shiller data and evidence an improvement in the long-beleaguered sector.\u00a0 Collectively, recent economic data have evidenced a U.S. economy that appears to have bottomed out.\u00a0 Nonetheless, there is now some talk that the global economy may have come too far, too fast and resulted in overvalued equities markets.\u00a0 The euro has been highly correlated with equities prices and a move lower in share prices could put the common currency on the backfoot. In eurozone news, the German Ifo\u2019s August business climate index rallied to 90.5, its highest level since September 2008.\u00a0 Data released in the eurozone yesterday saw German second quarter gross domestic product growth expand 0.3%, confirming the provisional estimate from 13 August.\u00a0 ECB policymakers this week have been quite cautious in their assessments of the economy, noting it is unlikely they\u2019ll move to unwind their monetary stimuli anytime soon.\u00a0 ECB rate-setters will next convene on 3 September and are unlikely to change monetary policy at that time.\u00a0 Euro bids are cited around the US$ 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 \u00a594.55 level and was supported around the \u00a593.85 level.\u00a0 The yen was otherwise stronger across the board as risk appetite weakened on ongoing concerns that some asset prices are overvalued.\u00a0 The big news in the market today was a report that China may move to curb some industrial overcapacity in industries such as steel and cement that has been precipitated by this year\u2019s record credit expansion.\u00a0 Any indication that China may seem to reduce economic growth and contain its liberal credit policies could result in yen appreciation on the premise that the resulting impact on global growth will slow.\u00a0 All eyes will watch this weekend\u2019s general election in Japan with the Democratic Party of Japan poised to dislodge the Aso government and long-incumbent Liberal Democratic Party from power.\u00a0 The Nikkei 225 stock index climbed 1.36% to close at \u00a510,639.71.\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 \u00a5133.90 level and was capped around the \u00a5135.10 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5152.20 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a587.95 level. In Chinese news, the U.S. dollar lost ground vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8266 in the over-the-counter market, down from CNY 6.8267.\u00a0 Chinese Premier Wen this week 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.\u00a0 PBoC has reported it will ensure \u201creasonable and ample\u201d liquidity.<\/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 July headline durable goods orders print at 4.9%, up from a revised -1.3% in June…<\/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-3519","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3519","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=3519"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3519\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}