{"id":4028,"date":"2009-09-25T15:06:42","date_gmt":"2009-09-25T20:06:42","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4028"},"modified":"2009-09-25T15:06:42","modified_gmt":"2009-09-25T20:06:42","slug":"fundamental-outlook-at-1400-gmt-edt-0400-80","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/25\/fundamental-outlook-at-1400-gmt-edt-0400-80\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EDT + 0400)"},"content":{"rendered":"

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

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

The euro strengthened vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4725 level and was supported around the $1.4615 level.\u00a0 Group of Twenty officials are said to be preparing a statement that says they will continue to support the global economy and the U.S. dollar suffered as a result. There is also a report that G20 members will be required to have their economic policies reviewed by their peers. Data released in the U.S. today saw August headline durable goods orders off 2.4%, far below expectations and the revised 4.8% print in July, while the ex-transportaton component was flat at +0.0%, down from the revised +0.9% print in July. Also, September University of Michigan consumer sentiment came in stronger-than-expected at 73.5, up from the prior reading of 70.2.\u00a0 Additionally, August new home sales were up 0.7% m\/m, a lighter-than-expected annualized 429,000 rate.\u00a0 In eurozone news, German GfK consumer confidence improved to 4.3 in October from 3.7 in September.\u00a0 Also, the EMU-16 M3 money supply expanded 2.5% y\/y in August, less-than-expected.\u00a0\u00a0 The Federal Reserve, European Central Bank, Bank of England, Bank of Japan, and Swiss National Bank yesterday\u00a0 announced they will extend their liquidity-providing facilities and operations through January 2010.\u00a0 The euro\u2019s upside may be pressured by continued strong selling pressure against sterling.\u00a0 Bank of England Governor has been quoted as saying sterling\u2019s recent weakness has been \u201chelpful\u201d in addressing economic imbalances.\u00a0 Euro bids are cited around the US$ 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 \u00a589.50 level and was capped around the \u00a591.35 level.\u00a0 The yen rampaged across the board as the Group of Twenty meeting remained underway in Pittsburgh.\u00a0 Japanese finance minister Fujii met with U.S. Treasury Secretary Geithner last night and reported he is opposed to intentionally devaluing the yen or other currencies.\u00a0 This admission gave the yen a clear path to appreciate.\u00a0 Former MoF mouthpiece \u201cMr Yen\u201d Sakakibara reported the government may not intervene even if the pair falls as low as \u00a590.\u00a0 Fujii and the government may only decide to intervene if exchange rate imbalances become \u201cabnormal.\u201d Data released in Japan overnight saw the August corporate service price index printed at 92.2, off 0.4% m\/m and 3.5% y\/y.\u00a0\u00a0 Bank of Japan announced it will extend liquidity provision measures through January 2010 to cushion money markets in concert with other central banks.\u00a0 Yen borrowing costs declined to a three-year low with three-month Libor at 0.34625, the lowest level since June 2006.\u00a0 Similarly, U.S. dollar three-month Libor printed at a record low of 0.28250.\u00a0 U.S. dollar rates have been below Japanese dollar rates since 24 August and that has resulted in the U.S. dollar being used as a carry trade funding currency.\u00a0 The Nikkei 225 stock index lost 2.64% to close at \u00a510,265.98.\u00a0 U.S. dollar offers are cited around the \u00a594.75 level.\u00a0 The euro moved lower vis-\u00e0-vis the yen as the single currency tested bids around the \u00a5131.55 level and was capped around the \u00a5133.85 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5142.75 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 6.8235 in the over-the-counter market, up from CNY 6.8218.\u00a0 People\u2019s Bank of China Deputy Governor Hu this week reported G20 nations should consider establishing an international wealth fund to invest a portion of members\u2019 current account surpluses.\u00a0 There is continued speculation among dealers that Chinese monetary authorities may allow the yuan to appreciate further vis-\u00e0-vis the U.S. dollar.\u00a0 PBoC official Xie Duo reported it is \u201cclosely watching\u201d the direction and trend of the U.S. dollar.<\/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 rampaged across the board as the Group of Twenty meeting remained underway in Pittsburgh…<\/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-4028","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4028","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=4028"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4028\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}