{"id":6355,"date":"2010-01-28T16:01:52","date_gmt":"2010-01-28T21:01:52","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6355"},"modified":"2010-01-28T16:01:52","modified_gmt":"2010-01-28T21:01:52","slug":"forex-daily-market-commentary-5","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/28\/forex-daily-market-commentary-5\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

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

Fundamental Outlook at 1500 GMT (EDT + 0500)<\/p>\n

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

The euro depreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3940 level and was capped around the $1.4050 level.\u00a0 The common currency continues to suffer following a lack of clarity regarding Greece\u2019s fiscal deficit and the manner in which Greece is trying to bridge its deficit.\u00a0 Both Greece and China have denied the report that the former is asking the latter to purchase as much as \u20ac25 billion in Greek debt.\u00a0 European officials spoke about Greece\u2019s and the eurozone\u2019s other fiscal problems today.\u00a0 Greek Prime Minister Papandreou said his country will reduce its deficit while Spanish Prime Minister Zapatero pledged extensive reforms including up to \u20ac50 billion in spending cuts.\u00a0 European Central Bank President Trichet said many industrialized countries share similar problems.\u00a0 The German finance ministry today denied a fresh rumour that the European Union would help Greece avoid a fiscal meltdown.\u00a0 Data released in the eurozone today saw EMU-16 economic confidence improve for a tenth consecutive month to 95.7.\u00a0 Also, Germany\u2019s unemployment rate climbed to 3.617 million in January, taking the unadjusted jobless rate higher to 8.6% from 7.8% in December.\u00a0 In U.S. news, the U.S. dollar sold off on Obama\u2019s State of the Union speech and U.S. equity markets also came off.\u00a0 The Federal Open Market Committee yesterday kept interest rates unchanged and noted there has been economic improvement.\u00a0 Also, the Fed noted its program to support mortgage-backed securities will unwind at the end of March as planned.\u00a0 Kansas City Fed President Hoenig dissented yesterday by voting in favour of removing additional monetary accommodation at this time.\u00a0 Data released in the U.S. today saw weekly initial jobless claims decrease to 470,000 from a revised 478,000 while continuing jobless claims fell to 4.602 million.\u00a0 Also, December headline durable goods orders came in lower-than-expected at +0.3%, up from the November revised print of -0.4%, while the ex-transportation component printed at +0.9%, down from a revised +2.1%.\u00a0 Also, the December Chicago Fed national activity index worsened to -0.61. Euro bids are cited around the US$ 1.3885 level.<\/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 \u00a589.60 level and was capped around the \u00a590.55 level.\u00a0 Data released in Japan overnight saw December overall retail sales off a worse-than-expected 0.3% y\/y and overall retail sales in the fourth quarter of 2009 were off 0.8% y\/y, contributing to 2009\u2019s overall 2.3% decline.\u00a0 A media report today indicates that Japanese government bond issuance may rise to around \u00a555 trillion in fiscal year 2013, up from the estimated \u00a5 44.3 billion of new issuance planned for the next fiscal year.\u00a0 Bank of Japan Governor Shirakawa was reported as saying the economic recovery \u201cwill not be interrupted\u201d while former BoJ official Iwata said the central bank should clarify its position on \u201cprice stability.\u201d\u00a0 Bank of Japan kept its monthly economic assessment unchanged and noted the economy is \u201cpicking up,\u201d adding it will continue to improve at a moderate pace.\u00a0 The central bank also said the decline in consumer prices is moderating and housing investment has \u201cstopped falling.\u201d As expected, Bank of Japan\u2019s Policy Board this kept its overnight call rate unchanged at 0.1% and kept its economic assessment intact.\u00a0 The central bank upwardly revised its deflation forecast for the fiscal year that begins in April and is now eyeing a decline of 0.5%, better than the 0.8% decline in prices it predicted in October.\u00a0 The Nikkei 225 stock index climbed 1.58% to close at \u00a510,414.29.\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 \u00a5125.10 level and was capped around the \u00a5127.05 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5144.60 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a585.05 level. In Chinese news, the U.S. dollar depreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8268 in the over-the-counter market, down from CNY 6.8269.\u00a0 People\u2019s Bank of China Deputy Governor Zhu reported the U.S. carry trade is dangerous to the global economy and added China will continue to pursue a stable yuan.<\/p>\n

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

The British pound moved lower vis-\u00e0-vis the U.S. dollar today as cable tested bids around the US$ 1.6110 level and was capped around the $1.6275 level.\u00a0 U.K. Chancellor of the Exchequer Darling said reform that has already been agreed-upon should be implemented.\u00a0 Darling added the U.K. economic is \u201cmoving in the right direction\u201d. Bank of England today announced it is abandoning its temporary swap lines with the Federal Reserve and said it has ended its asset purchase program of gilts.\u00a0 Sterling picked up ground yesterday on comments from Bank of England Monetary Policy Committee member Sentance who said it will be difficult to keep inflation on target given sterling\u2019s depreciation.\u00a0 He also said data suggests the U.K. economy expanded more in Q4 than reported at +0.1%.\u00a0 Cable bids are cited around the US$ 1.6030 level.\u00a0 The euro moved lower vis-\u00e0-vis the British pound as the single currency tested bids around the \u20a40.8600 figure and was capped around the \u20a40.8675 level.<\/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":"

European officials spoke about Greece\u2019s and the eurozone\u2019s other fiscal problems today. Greek Prime Minister Papandreou…<\/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-6355","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6355","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=6355"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6355\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}