{"id":7154,"date":"2010-02-25T18:41:09","date_gmt":"2010-02-25T23:41:09","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7154"},"modified":"2010-02-25T18:41:09","modified_gmt":"2010-02-25T23:41:09","slug":"forex-daily-market-commentary-21","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/25\/forex-daily-market-commentary-21\/","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\t1.3570 level and was supported around the $1.3450 level.\u00a0 \u00a0The common \t\tcurrency reclaimed some recent lost ground as Federal Reserve Chairman \t\tBernanke reported the U.S. dollar could be negatively impacted by the \t\trapidly expanding public deficit that is now projected to reach 11% of \t\tgross domestic product by the end of the year.\u00a0 Bernanke implored \t\tCongress and the Obama administration to \u201cfind a solution\u201d to the \t\tescalating deficit.\u00a0 The common currency scaled back earlier gains after \t\ta rumour circulated that Greece may be facing a credit downgrade.\u00a0 \t\tGreece is expected to sell some \u20ac5 billion in new ten-year bonds next \t\tweek to refinance a mountain of maturing debt and will need to tap the \t\tcapital markets extensively this year.\u00a0 Focus is now on the derivatives \t\ttrades Greece entered into to be able to qualify to join the euro.\u00a0 Data \t\treleased in the U.S. today saw January durable goods orders climb a \t\tstronger-than-expected 3.0%, up from a revised 1.9% in December, while \t\tthe ex-transportation component was off -0.6%, down from an upwardly \t\trevised +2.0% in December.\u00a0 Also, weekly initial jobless claims came in \t\ton the weak side, up 496,000 from 474,000 last week, while continuing \t\tjobless claims printed at 4.617 million, up from 4.611 million. These \t\tdata indicate the U.S. labour market is not really gaining any \t\ttraction.\u00a0 Other data saw the December house price index off 1.6% m\/m, \t\tdown from a revised +0.4%, and was off 0.1% q\/q, down from a revised \t\t+0.1%.\u00a0 Many data will be released in the U.S. tomorrow including Q4 \t\tgross domestic product, the February Chicago Purchasing Manager index, \t\tFebruary University of Michigan consumer sentiment, and January existing \t\thome sales.\u00a0 In eurozone news<\/strong>, EMU-16 consumer confidence \t\tretreated to -17 in February from -16 in January, the first decline \t\tsince the recent low of -34 in March 2009.\u00a0 Also, February economic \t\tconfidence improved slightly to 95.9 from 95.7 in January and industrial \t\tconfidence rallied to -13 from -14 in January.\u00a0 Additionally, it was \t\treported that German February unemployment remained steady at 8.2% with \t\t7,000 jobs lost. Moreover, M3 money supply was up 0.1% y\/y in January.\u00a0 \t\tEuro 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 \u00a588.80 level and was capped around the \u00a590.30 level. \u00a0Traders sold \t\tdollars for yen on escalating risk aversion related to the European \t\tsovereign credit crisis.\u00a0 Bank of Japan Deputy Governor Yamaguchi this \t\tweek said recent consumer price movements have been consistent with \t\tforecasts and said the market views Japanese finances as being \u201cstable\u201d \t\tbut noted the \u201cfiscal situation is very severe.\u201d\u00a0 Yamaguchi added the \t\tcentral bank is \u201calways ready to take necessary action\u201d and noted \t\teconomic growth should be soft until the summer. \u00a0Data released in Japan \t\tyesterday saw the February retail investor sentiment index slump 22 \t\tindex points to -48.\u00a0 Most traders believe Japan\u2019s deflationary \t\tpressures will persist through at least fiscal year 2011.\u00a0 \u00a0Bank of \t\tJapan this week reported the economic recovery is continuing but added \t\t\u201cthere is not yet sufficient momentum to support a self-sustaining \t\trecovery in domestic private demand.\u201d\u00a0 BoJ also noted exports and \t\tproduction will continue to improve and regarding deflation, the BoJ \t\tadded \u201cthe year-on-year pace of decline in consumer prices\u2026to remain \t\tmore or less unchanged for the time being, and then moderate as the \t\taggregate supply and demand balance improves gradually.\u201d The Nikkei 225 \t\tstock index lost 0.95% to close at \u00a510,101.96.\u00a0 U.S. dollar offers are \t\tcited around the \u00a594.75 level.\u00a0 The euro moved lower <\/strong>vis-\u00e0-vis \t\tthe yen as the single currency tested bids around the \u00a5119.65 level and \t\twas capped around the \u00a5122.30 level.\u00a0 The British pound moved lower <\/strong>vis-\u00e0-vis the yen as sterling tested bids around the \u00a5134.95 level \t\twhile the Swiss franc moved lower <\/strong>vis-\u00e0-vis the yen and tested \t\tbids around the \u00a581.75 level. In Chinese news<\/strong>, the U.S. dollar \t\tdepreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY \t\t6.8268 in the over-the-counter market, down from CNY 6.8269.\u00a0 People\u2019s \t\tBank of China reported the 2010 economic situation is \u201cmore severe and \t\tcomplicated.\u201d The Chinese government reported its recent sales of U.S. \t\tTreasuries were \u201ccommendable,\u201d leading to speculation China may continue \t\tto reduce their massive war chest of U.S. assets.\u00a0 \u00a0Last week, People\u2019s \t\tBank of China reconfirmed it will \u201cgradually guide monetary conditions \t\tback to normal levels from the counter-crisis mode.\u201d<\/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":"

Traders sold dollars for yen on escalating risk aversion related to the European sovereign credit crisis. Bank of Japan Deputy Governor Yamaguchi this week said…<\/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-7154","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7154","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=7154"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7154\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=7154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=7154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=7154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}