{"id":6692,"date":"2010-02-09T16:22:16","date_gmt":"2010-02-09T21:22:16","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6692"},"modified":"2010-02-09T16:22:16","modified_gmt":"2010-02-09T21:22:16","slug":"forex-daily-market-commentary-11","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/09\/forex-daily-market-commentary-11\/","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

The euro appreciated sharply vis-\u00e0-vis \t\tthe U.S. dollar today<\/strong> as the single currency tested offers around \t\tthe US$ 1.3840 level and was supported around the $1.3640 level. \u00a0The \t\tcommon currency added to intraday gains during the North American \t\tsession as U.S. equities were on the positive side out of the gate.\u00a0 \t\tMany rumours circulated during the European and North American sessions \t\tinvolving Greece\u2019s deficit problems.\u00a0 First, dealers reacted to chatter \t\tthat European Central Bank President Trichet cut short a trip to Sydney \t\twhere he was meeting with central bank governors and returned to Europe \t\tfor an emergency meeting of the ECB, a story the central bank denied.\u00a0 \t\tLater, it was reported by a senior German ruling coalition \u201csource\u201d that \t\teurozone governments have decided in principle to help Greece but a \t\tGerman spokesman later denied the report.\u00a0 In addition to Greece, \t\ttraders remain fixated on the deficits of Spain and Portugal. \u00a0The \t\tso-called sovereign credit crisis will likely extend to other countries \t\toutside of the eurozone in due course but in the short-term, the issue \t\tremains a net negative for the common currency.\u00a0 European Union leaders \t\twill convene on Thursday to discuss strategies to accelerate economic \t\tgrowth but Greece is not currently on the agenda.\u00a0 Data released in the \t\teurozone today saw Germany\u2019s December trade surplus print at \u20ac16.7 \t\tbillion, down from \u20ac17.0 billion in November.\u00a0 Also, German December \t\tconsumer price inflation was confirmed at -0.6% m\/m and up +0.8% y\/y.\u00a0 \t\tIn U.S. news<\/strong>, data released in the U.S. today saw December \t\twholesale inventories off 0.8%. \u00a0\u00a0Data to be released in the U.S. \t\ttomorrow include MBA mortgage applications and the December trade \t\tbalance.\u00a0 The Federal Reserve will release testimony tomorrow by Fed \t\tChairman Bernanke regarding the Fed\u2019s strategy to exit its low interest \t\trate and liquidity programs.\u00a0 Bernanke was to testify before the House \t\tFinancial Services Committee about \u201cUnwinding Emergency Federal \t\tLiquidity Programs and Implications for Economic Recovery\u201d tomorrow but \t\tthis is being delayed on account of weather.\u00a0 Bernanke is next scheduled \t\tto testify around 20 February.\u00a0 Euro bids are cited around the US$ \t\t1.3530 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 \u00a589.80 level and was supported around the \u00a589.20 level. \t\t\u00a0National Strategy minister Sengoku reported the government will \u201cwatch \t\tthe economy closely\u201d as the fiscal year ends.\u00a0 The Tokyo three-month \t\tinterbank offered rate (Tibor) for yen deposits declined to a multi-year \t\tlow, reaching 0.44462% and reflecting all of the unwanted liquidity \t\tavailable in the Japanese financial system. BoJ Deputy Governor \t\tYamaguchi yesterday warned economic growth \u201cmay stall\u201d temporarily and \t\tsaid \u201cgrowth may be in a pretty severe state through this summer, so we \t\tcan\u2019t really expect a rapid expansion.\u201d\u00a0 The Nikkei 225 stock index lost \t\t0.19% to close at \u00a59,932.90.\u00a0 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 \u00a5123.65 level and was supported \t\taround the \u00a5121.70 level.\u00a0 The British pound moved higher <\/strong> vis-\u00e0-vis the yen as sterling tested offers around the \u00a5140.40 level \t\twhile the Swiss franc moved higher <\/strong>vis-\u00e0-vis the yen and tested \t\toffers around the \u00a584.25 level. In Chinese news<\/strong>, the U.S. dollar \t\tappreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY \t\t6.8267 in the over-the-counter market, up from CNY 6.8266. People\u2019s Bank \t\tof China Governor Zhou hawkishly said \u201cRight now the inflation rate has \t\tstarted to go up, but the level is still relatively low.\u00a0 We need to \t\tclosely watch (the level of inflation).\u201d\u00a0 Some economists expect China\u2019s \t\tconsumer price inflation likely advanced 2.1% y\/y last month.\u00a0 Japanese \t\tthink tank Nomura Institute of Capital Markets today reported China may \t\tpermit the yuan to strengthen at an annual rate of 5% vis-\u00e0-vis the U.S. \t\tdollar after possibly raising borrowing costs in June.<\/p>\n

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

The British pound moved higher vis-\u00e0-vis the U.S. dollar today<\/strong> as \t\tcable tested offers around the US$ 1.5650 level and was supported around \t\tthe $1.5560 level. \u00a0Data released in the U.K. today saw the December \t\ttotal trade deficit rise to \u20a43.3 billion from \u20a42.9 billion while the \t\tgoods trade deficit increased to \u20a47.3 billion from \u20a46.8 billion.\u00a0 Also, \t\tthe January RICS house price balance improved last month.\u00a0 Chancellor of \t\tthe Exchequer Darling recently reported he fully supports Bank of \t\tEngland\u2019s asset purchase pause that was announced on Thursday, adding \t\tthe U.K. gilt market responded well.\u00a0 BoE has recently announced the \t\tweaker pound has benefited the U.K. economy.\u00a0 The central bank will \t\tpublish its quarterly inflation report and new economic forecasts \t\ttomorrow. Cable bids are cited around the US$ 1.5340 level.\u00a0 The euro \t\tmoved higher<\/strong> vis-\u00e0-vis the British pound as the single currency \t\ttested offers around the \u20a40.8815 level and was supported around the \t\t\u20a40.8755 level.<\/p>\n

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

The Swiss franc appreciated vis-\u00e0-vis \t\tthe U.S. dollar today<\/strong> as the greenback tested bids around the CHF \t\t1.0655 level and was capped around the CHF 1.0745 level. \u00a0Swiss National \t\tBank member Jordan is quoted as having said it is premature to raise \t\tinterest rates from their near zero per cent level.\u00a0 Jordan also \t\treported the SNB will continue to prevent an \u201cexcessive\u201d appreciate of \t\tthe Swiss franc, adding the franc is seen as a \u201csafe haven.\u201d\u00a0 Data \t\treleased in Switzerland today saw December real retail sales up 4.7% \t\twhile the January unemployment rate rose to 4.5% from 4.4%.\u00a0 Some \t\tdealers are still talking about Friday\u2019s reported intervention by Swiss \t\tNational Bank in which the central bank is rumoued to have bid on the \t\tEUR\/CHF cross some 280 pips above the current market price.\u00a0 U.S. dollar \t\toffers are cited around the CHF 1.0810 level.\u00a0 The euro moved higher<\/strong> vis-\u00e0-vis the Swiss franc as the single currency tested offers around \t\tthe CHF 1.4685 level while the British pound came off<\/strong> vis-\u00e0-vis \t\tthe Swiss franc and tested bids around the CHF 1.6635 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 common currency added to intraday gains during the North American session as U.S. equities were on the positive side out of the gate. Many rumours circulated…<\/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-6692","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6692","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=6692"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6692\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}