{"id":6072,"date":"2010-01-20T15:19:23","date_gmt":"2010-01-20T20:19:23","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6072"},"modified":"2010-01-20T15:19:23","modified_gmt":"2010-01-20T20:19:23","slug":"forex-daily-market-commentary-4","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/20\/forex-daily-market-commentary-4\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

By GCI Forex Research<\/strong><\/span><\/p>\n

Fundamental Outlook at 1500 \t\tGMT (EDT + 0500)<\/strong><\/p>\n

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

The euro depreciated sharply vis-\u00e0-vis \t\tthe U.S. dollar today<\/strong> as the single currency tested bids around the \t\tUS$ 1.4080 level and was capped around the $1.4295 level. \u00a0Dealers are \t\ttalking about the victory in the U.S. state of Massachusetts by a \t\tRepublican in a special Senate election and the impact this will have on \t\tthe Obama administration\u2019s ability to pass legislation.\u00a0 Banks and \t\tfinancial institutions are trying to repair their balance sheets and the \t\tremoval of Obama\u2019s filibuster-free legislative ability could be positive \t\tfor the U.S. dollar.\u00a0 The common currency was also weighed down today by \t\tongoing concerns regarding Greece\u2019s fiscal position.\u00a0 Greek finance \t\tminister Papaconstantinou today said the country is \u201creviewing all \t\toptions\u201d as to how to raise funds to improve its fiscal position.\u00a0 \t\tDealers cite concerns that the credit crisis could spread to other \t\teurozone countries and engender a greater panic in capital markets \t\tthere, possibly requiring intervention from the European Central Bank.\u00a0 \t\tEuropean Central Bank member Stark reported said the ECB wil \u201cnot change \t\tits rules\u201d for Greece and that Greece\u2019s situation requires a \u201cradical \t\tturnaround.\u201d\u00a0 German Chancellor Merkel called on Germany to remain a net \t\texporter.\u00a0 In U.S. news<\/strong>, data released in the U.S. saw MBA \t\tmortgage applications decline to +9.1% from +14.3% in the latest \t\treporting week.\u00a0 Also, December headline producer prices were up 0.2% \t\tm\/m and 4.4% y\/y while the core ex-food and energy components were up \t\t0.0% m\/m and 0.9% y\/y.\u00a0 Also, December housing starts fell to an \t\tannualized 557,000 from a revised 580,000 in November and building \t\tpermits were up 10.9% y\/y to print at 653,000, up from a revised \t\t589,000.\u00a0 Euro bids are cited around the US$ \t\t1.3885 level.<\/p>\n

\u00a5\/ CNY<\/strong><\/p>\n

The yen depreciated \t\tvis-\u00e0-vis the U.S. dollar today<\/strong> as the greenback tested offers \t\taround the \u00a591.45 level and was supported around the \u00a590.80 level. \u00a0Data \t\treleased in Japan overnight saw revised December machine tool orders up \t\t27.2% m\/m and +63.4% y\/y.\u00a0 As expected, Bank of Japan kept its \t\tassessment of the economy unchanged overnight and did not include \t\texchange rates and stock price volatility as risk in its assessment.\u00a0 \t\tNotably, the central bank also improved its assessment of the domestic \t\thousing market and upgraded its view on financial market conditions for \t\tthe first time in four months.\u00a0 BoJ said the economy is \u201cpicking up\u201d but \t\tremains in a \u201cdifficult condition.\u201d BoJ Governor Shirakawa reported \t\tdemand for funds from small companies remains weak.\u00a0 Data released in \t\tJapan yesterday saw December consumer confidence print at 37.6.\u00a0 Former \t\tBank of Japan Policy Board member Hirano reported a weak yen is positive \t\tfor Japan\u2019s economy.\u00a0 Prime Minister Hatoyama, whose government is \t\tembroiled in a funds scandal, said the government and BoJ must cooperate \t\tin combating deflation.\u00a0 This scandal has been brewing for several \t\tmonths but some traders believe the problems are worsening and could \t\tprevent the government from enacting needed reforms and budget \t\tagreements.\u00a0 There is increasing speculation the central bank will \t\textend its near-zero per cent interest rate policy and possibly ramp up \t\tfund injections into the economy.\u00a0 Group of Seven finance ministers are \t\texpected to discuss exchange rates in Canada when they convene on 5-6 \t\tFebruary.\u00a0 The Nikkei 225 stock index lost 0.25% to close at \t\t\u00a510,737.52.\u00a0 U.S. dollar offers are cited around the \u00a594.75 level.\u00a0 The euro moved lower <\/strong>vis-\u00e0-vis the yen as the single currency tested \t\tbids around the \u00a5128.40 level and was capped around the \u00a5130.30 level.\u00a0 \t\tThe British pound moved higher <\/strong>vis-\u00e0-vis the yen as sterling \t\ttested offers around the \u00a5147.55 level while the Swiss franc moved \t\tlower <\/strong>vis-\u00e0-vis the yen and tested bids around the \u00a586.95 level. In Chinese news<\/strong>, the U.S. dollar appreciated vis-\u00e0-vis the Chinese \t\tyuan as the greenback closed at CNY 6.8270 in the over-the-counter \t\tmarket, down from CNY 6.8277. \u00a0People\u2019s Bank of China today instructed \t\tsome banks to restrict lending and will restrict overall credit growth \t\tin China to CNY 7.5 trillion in 2010.\u00a0 People\u2019s Bank of China guided its \t\tbenchmark one-year bill yield to its highest level in fourteen months to \t\tmoderate record loan growth and slow asset bubbles.\u00a0 PBoC sold bills at \t\ta rate of 1.9264% in open-market operations and this is the central \t\tbank\u2019s latest signal that it is intent on tightening monetary policy \t\tthis year.\u00a0 Many economists foresee a GDP growth rate above 10% this \t\tyear.<\/p>\n

Forex 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":"

As expected, Bank of Japan kept its assessment of the economy unchanged overnight and did not include exchange rates and stock price volatility as risk in its assessment…<\/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-6072","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6072","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=6072"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6072\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}