{"id":6398,"date":"2010-01-29T13:45:49","date_gmt":"2010-01-29T18:45:49","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6398"},"modified":"2010-01-29T13:45:49","modified_gmt":"2010-01-29T18:45:49","slug":"forex-daily-market-commentary-6","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/29\/forex-daily-market-commentary-6\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

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

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

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

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

The \t\teuro depreciated vis-\u00e0-vis the U.S. dollar today<\/strong> as the single currency tested bids around the US$ 1.3900 figure and was \t\tcapped around the $1.3985 level.\u00a0 The common currency slumped following \t\tstronger-than-expected U.S. economic data that were released today \t\tincluding a 5.7% q\/q annualized climb in fourth quarter 2009 gross \t\tdomestic product, up from the prior reading of +2.2%.\u00a0 The GDP price \t\tindex was up less-than-expected at +0.6% while core personal consumption \t\texpenditures were up +1.4% q\/q with the employment cost index up +0.5%.\u00a0 \t\tAlso, the Chicago Purchasing Managers index rallied to 61.5 from the \t\tprior reading of 58.7 and the final January University of Michigan \t\tconsumer sentiment indicator improved to 74.4 from the prior reading of \t\t72.8.\u00a0 Generally speaking, today\u2019s economic data were quite strong and \t\tevidenced a U.S. economy that remains in a jobless economic recovery for \t\tnow. Employment aggregates continue to lag growth and activity data and \t\tmost economists believe unemployment will moderate in 2010.\u00a0 Federal \t\tReserve Chairman Bernanke was reconfirmed to a second term at the helm \t\tof the Fed yesterday and Treasury Secretary Geithner remains under \t\tpolitical attack from both sides of the aisle. \u00a0In eurozone news<\/strong>, \t\tEMU-16 unemployment escalated to 10% in December for the first time \t\tsince the adoption of the euro in 1999.\u00a0 Also, EMU-16 lending to the \t\tprivate sector stalled last month and financing constraints will likely \t\thave a negative impact on economic growth.\u00a0 Additionally, EMU-16 \t\tinflation reached an eleven-month high last month and the December M3 \t\tmoney supply contracted 0.2%.\u00a0 The common currency continues to weaken \t\tpartially on account of escalating sovereign credit concerns in the \t\teurozone.\u00a0 Greek fiscal problems are being compounded by a similar \t\tsituation in Portugal, Spain, Ireland, and elsewhere and there is \t\tongoing chatter that the European Union may be forced to bail Greece out \t\tof its problems, despite strong German opposition. Euro bids are cited \t\taround the US$ 1.3740 level. <\/strong><\/p>\n

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

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

The \t\tyen depreciated vis-\u00e0-vis the U.S. dollar today<\/strong> as the greenback tested offers around the \u00a590.90 level and was supported \t\taround the \u00a589.60 level. \u00a0Many data were released in Japan overnight. \t\tFirst, December core consumer prices were off 1.3% y\/y, in line with \t\texpectations, and these data evidence Japan\u2019s ongoing bout with moderate \t\tdeflationary pressures.\u00a0 The government continues to pressure Bank of \t\tJapan to enact more monetary easing policies and these may eventually \t\tinclude more purchases of Japanese government bonds and more emergency \t\tlending plans.\u00a0 Other data released today saw December overall housing \t\tstarts off 15.7% y\/y while December construction orders were up +0.6% \t\ty\/y. The Nikkei 225 stock index lost 2.18% to close at \u00a510,198.04. <\/strong>U.S. dollar offers are cited around the \t\t\u00a594.75 level.\u00a0 The euro moved higher <\/strong>vis-\u00e0-vis the yen as the \t\tsingle currency tested offers around the \u00a5126.65 level and was supported \t\taround the \u00a5124.80 level.\u00a0 The British pound moved higher <\/strong> vis-\u00e0-vis the yen as sterling tested offers around the \u00a5146.20 level \t\twhile the Swiss franc moved higher <\/strong>vis-\u00e0-vis the yen and tested \t\toffers around the \u00a586.40 level. In Chinese news<\/strong>, the U.S. dollar \t\tdepreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY \t\t6.8267 in the over-the-counter market, down from CNY 6.8268. \u00a0People\u2019s \t\tBank of China Deputy Governor Zhu yesterday reported the U.S. carry \t\ttrade is dangerous to the global economy and added China will continue \t\tto pursue a stable yuan.\u00a0 China will likely feel a lot of pressure from \t\tGroup of Eight officials convening in Canada in early February regarding \t\tChina\u2019s exchange rate.\u00a0 PBoC reported Chinese property prices are up 21% \t\tfrom 2007\u2019s levels and said corporate inventory growth is now \t\tdecelerating.\u00a0 PBoC also indicated managing the economy has become \u201cmore \t\tdifficult\u201d and said it will pursue \u201creasonable and sufficient\u201d credit \t\tand money controls.<\/p>\n

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

The British pound moved \t\tlower vis-\u00e0-vis the U.S. dollar today<\/strong> as cable \t\ttested bids around the US$ 1.6020 level and was capped around the \t\t$1.6180 level. \u00a0Data released in the U.K. today saw January Nationwide \t\thouse prices up 1.2% m\/m and 8.6% y\/y.\u00a0 U.K. Chancellor of the Exchequer \t\tDarling \u00a0yesterday said reform that has already been agreed-upon should \t\tbe implemented.\u00a0 Darling added the U.K. economic is \u201cmoving in the right \t\tdirection\u201d. Bank of England today announced it is abandoning its \t\ttemporary swap lines with the Federal Reserve and said it has ended its \t\tasset purchase program of gilts.\u00a0 Sterling picked up ground yesterday on \t\tcomments from Bank of England Monetary Policy Committee member Sentance \t\twho said it will be difficult to keep inflation on target given \t\tsterling\u2019s depreciation.\u00a0 He also said data suggests the U.K. economy \t\texpanded more in Q4 than reported at +0.1%.\u00a0 Tory leader Cameron today \t\tcalled for more powers to be given to Bank of England to oversee the \t\teconomy.\u00a0 \u00a0Cable bids are cited around the US$ 1.5910 level.\u00a0 The \t\teuro moved higher<\/strong> vis-\u00e0-vis the British pound as the single currency \t\ttested offers around the \u20a40.8690 level and was supported around the \t\t\u20a40.8630 level.<\/p>\n

CHF<\/strong><\/p>\n

The Swiss franc \t\tdepreciated vis-\u00e0-vis the U.S. dollar today<\/strong> as \t\tthe greenback tested offers around the CHF 1.0550 level and was \t\tsupported around the CHF 1.0480 level.\u00a0 Data released in the U.S. today \t\tsaw the January KOF leading indicator improve to +1.77 from +1.68 in \t\tDecember.\u00a0 Swiss National Bank President Hildebrand spoke today and said \t\tthe central bank continues to sell assets from the UBS Stability Fund \t\tand that he remains optimistic on the process. Finace minister Merz \t\tindicated he is \u201chappy\u201d with the euro\/ franc exchange rate.\u00a0 The euro \t\tcame off <\/strong>vis-\u00e0-vis the Swiss franc as the single currency tested \t\tbids around the CHF 1.4645 level while the British pound depreciated<\/strong> vis-\u00e0-vis the Swiss franc and tested bids around the CHF 1.6870 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":"

The Swiss franc depreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested offers around the CHF 1.0550 level and was supported around the CHF 1.0480 level…<\/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-6398","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6398","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=6398"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6398\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}