{"id":7106,"date":"2010-02-24T18:38:38","date_gmt":"2010-02-24T23:38:38","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7106"},"modified":"2010-02-24T18:38:38","modified_gmt":"2010-02-24T23:38:38","slug":"forex-daily-market-commentary-20","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/24\/forex-daily-market-commentary-20\/","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 vis-\u00e0-vis the U.S. \t\tdollar today<\/strong> as the single currency tested offers around the US$ \t\t1.3625 level and was supported around the $1.3500 figure.\u00a0 \u00a0\u00a0The common \t\tcurrency advanced higher after Federal Reserve Chairman said the U.S. \t\teconomy is in a \u201cnascent\u201d recovery that still requires low interest \t\trates.\u00a0 Bernanke added \u201cA sustained recovery will depend on continued \t\tgrowth in private-sector final demand for goods and services.\u00a0 Private \t\tfinal demand does seem to be growing at a moderate pace.\u201d\u00a0 Additionally, \t\tBernanke reported the recent 25bps hike in the discount rate to 0.75% \t\tshould not be construed \u201cas a shift in monetary policy.\u201d\u00a0 Recent U.S. \t\teconomic data have suggested the U.S. economy could be moderating.\u00a0 This \t\tweek\u2019s consumer confidence data were quite weak and data released today \t\tsaw January new home sales plummet to 309,000 from a revised 348,000, \t\toff 11.2% m\/m.\u00a0 Other data released today saw MBA mortgage applications \t\tweaker by 8.5% from the prior reading of -2.1%.\u00a0 Data to be released in \t\tthe U.S. tomorrow include January durable goods orders, weekly initial \t\tjobless claims, continuing claims, and December house prices.\u00a0 Some \t\teconomists are speculating jobless claims data could worsen and \t\tre-approach the 500,000 level.\u00a0 In eurozone news<\/strong>, EMU-16 \t\tindustrial new orders expanded 0.8% m\/m and 9.5% y\/y in December. \u00a0Also, \t\tGerman March GfK consumer confidence is estimated to decline to 3.2 from \t\tFebruary\u2019s print of 3.3.\u00a0 \u00a0Other dat saw German Q4 gross domestic \t\tproduct remain unchanged q\/q and decline 1.7% y\/y. \u00a0The eurozone \t\tsovereign credit crisis stills remains the dominant issue impacting the \t\tcommon currency.\u00a0 \u00a0Euro bids are cited around the US$ 1.3335 level.<\/p>\n

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

The yen appreciated \t\tvis-\u00e0-vis the U.S. dollar today<\/strong> as the greenback tested bids around \t\tthe \u00a589.75 level and was capped around the \u00a590.35 level. \u00a0Bank of Japan \t\tDeputy Governor Yamaguchi said recent consumer price movements have been \t\tconsistent with forecasts and said the market views Japanese finances as \t\tbeing \u201cstable\u201d but noted the \u201cfiscal situation is very severe.\u201d\u00a0 \t\tYamaguchi added the central bank is \u201calways ready to take necessary \t\taction\u201d and noted economic growth should be soft until the summer.\u00a0 Data \t\treleased in Japan overnight saw the February retail investor sentiment \t\tindex slump 22 index points to -48.\u00a0 Most traders believe Japan\u2019s \t\tdeflationary pressures will persist through at least fiscal year 2011.\u00a0 \t\t\u00a0Bank of Japan yesterday reported the economic recovery is continuing \t\tbut added \u201cthere is not yet sufficient momentum to support a \t\tself-sustaining recovery in domestic private demand.\u201d\u00a0 BoJ also noted \t\texports and production will continue to improve and regarding deflation, \t\tthe BoJ added \u201cthe year-on-year pace of decline in consumer prices\u2026to \t\tremain more or less unchanged for the time being, and then moderate as \t\tthe aggregate supply and demand balance improves gradually.\u201d The Nikkei \t\t225 stock index lost 1.48% to close at \u00a510,198.83.\u00a0 U.S. dollar offers \t\tare cited around the \u00a594.75 level.\u00a0 The euro moved lower <\/strong> vis-\u00e0-vis the yen as the single currency tested bids around the \u00a5121.60 \t\tlevel and was capped around the \u00a5122.60 level.\u00a0 The British pound \t\tmoved lower <\/strong>vis-\u00e0-vis the yen as sterling tested bids around the \t\t\u00a5138.35 level while the Swiss franc moved higher <\/strong>vis-\u00e0-vis the \t\tyen and tested offers around the \u00a583.75 level. In Chinese news<\/strong>, \t\tthe U.S. dollar appreciated vis-\u00e0-vis the Chinese yuan as the greenback \t\tclosed at CNY 6.8269 in the over-the-counter market, up from CNY 6.8267. \t\tChinese financial markets were closed for the Chinese New Year holiday. \t\t\u00a0The Chinese government reported its recent sales of U.S. Treasuries \t\twere \u201ccommendable,\u201d leading to speculation China may continue to reduce \t\ttheir massive war chest of U.S. assets.\u00a0 \u00a0Last week, People\u2019s Bank of \t\tChina reconfirmed it will \u201cgradually guide monetary conditions back to \t\tnormal levels from the counter-crisis mode.\u201d<\/p>\n

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

The British pound moved lower vis-\u00e0-vis the U.S. dollar today<\/strong> as \t\tcable tested bids around the US$ 1.5385 level and was capped around the \t\t$1.5475 level. \u00a0Sterling got a little bid of a bid during the European \t\tsession after it was reported that Santander \u2013 formerly Abbey National \t\tBuilding Society \u2013 will increase its maximum loan sizes available to \t\tfirst-time home buyers.\u00a0 Bank of England Monetary Policy Committee Posen \t\treported the central bank can extend quantitative easing if required.\u00a0 \t\tCable bids are cited around the US$ 1.5340 level.\u00a0 The euro moved \t\thigher<\/strong> vis-\u00e0-vis the British pound as the single currency tested \t\toffers around the \u20a40.8810 level and was supported around the \u20a40.8750 \t\tlevel.<\/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\t1.0735 level and was capped around the CHF 1.0840 level. \u00a0Data released \t\tin Switzerland this week saw the January trade surplus climb to\u00a0 CHF \t\t2.42 billion from CHF 1.36 billion in December.\u00a0 Also, the ZEW February \t\texpectations survey fell to 52.5 from 56.2 in January.\u00a0 Dealers this \t\tweek again speculated the Swiss National Bank sold francs for euro in an \t\tintervention to help Swiss foreign trade.\u00a0 Many dealers believe the \t\tSwiss National Bank will not be able to prevent the Swiss U.S. dollar \t\toffers are cited around the CHF 1.0930 level.\u00a0 The euro moved lower<\/strong> vis-\u00e0-vis the Swiss franc as the single currency tested bids around the \t\tCHF 1.4625 level while the British pound depreciated<\/strong> vis-\u00e0-vis \t\tthe Swiss franc and tested bids around the CHF 1.6605 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 euro appreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3625 level and was supported around the $1.3500 figure…<\/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-7106","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7106","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=7106"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7106\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=7106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=7106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=7106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}