{"id":7235,"date":"2010-03-01T16:28:10","date_gmt":"2010-03-01T21:28:10","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7235"},"modified":"2010-03-01T16:28:10","modified_gmt":"2010-03-01T21:28:10","slug":"forex-daily-market-commentary-22","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/01\/forex-daily-market-commentary-22\/","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<\/span> euro \t\tdepreciated vis-\u00e0-vis the U.S. dollar today<\/strong> as the single currency \t\ttested bids around the US$ 1.3460 level and was capped around the \t\t$1.3655 level. The common currency was pushed lower after a European \t\tUnion official was quoted as saying Greece must meet its 2010 fiscal \t\tdeficit target to regain credibility with the capital markets.\u00a0 Greek \t\tPrime Minister Papandreou is scheduled to meet German Chancellor Merkel \t\tin Berlin this week and there is speculation a deal may be reached in \t\twhich a multilateral financial aid package is reached.\u00a0 There is \t\tspeculation that multiple eurozone members may purchase part of Greece\u2019s \t\tupcoming debt offerings to help the country reduce its budget deficit by \t\tat least 3%.\u00a0 Data released in the eurozone today saw EMU-16 February \t\tmanufacturing PMI improve to 54.2 from 52.4, a 30-month high, while \t\tGerman manufacturing PMI raced higher to 57.2 from 53.7.\u00a0 Also, the \t\tGerman January import price index improved 1.7% m\/m and 1.4% y\/y.\u00a0 In \t\tU.S. news<\/strong>, data released today saw February ISM manufacturing \t\tdecline to 56.5 from 58.4 in January while January construction spending \t\twas off 0.6%.\u00a0 The ISM prices paid sub-index fell back to 67.0 from the \t\tprior reading of 70.0.\u00a0 Also, January personal income was up a \t\tweaker-than-expected 0.1%, down from a revised 0.3% in December, while \t\tJanuary personal spending printed at +0.5%, up from a revised +0.3% in \t\tDecember.\u00a0 Additionally, the January PCE deflator expanded 2.1% y\/y \t\twhile core PCE was up +0.0%, down from the prior reading of +0.1%.\u00a0 U.S. \t\tFederal Reserve Vice Chairman Kohn announced he will step down in June \t\tafter 40 years at the central bank.\u00a0 His retirement paves the way for \t\tthe Obama administration to appoint a Democrat at a time when it is \t\ttrying to significantly reduce the Fed\u2019s independence.\u00a0 Euro bids are \t\tcited around the US$ 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 \u00a589.45 level. \u00a0Financial \t\tservices minister Kamei called on Bank of Japan to do more to help \t\timprove the economy, saying the \u201ccentral bank should consider \t\tunderwriting debt to help the government create funds for fiscal \t\tstimulus. It\u2019s necessary to provide funds for bold fiscal spending.\u00a0 \t\tWithout fiscal stimulus funds, minister Kan can\u2019t resolve the economy\u2019s \t\toutput gap. He\u2019s not a magician.\u201d\u00a0 BoJ Governor Shirakawa and other \t\tPolicy Board members have vehemently rejected additional calls for the \t\tcentral bank to monetize additional debt.\u00a0 Finance minister Kan today \t\tsaid he wants Japan to be out of deflation by the end of 2010 even \t\tthough BoJ said it expects there will be price declines for three \t\tadditional years.\u00a0 BoJ Governor Shirakawa, in turn, today reiterated the \t\tgovernment needs to exercise more fiscal discipline.\u00a0 The Nikkei 225 \t\tstock index climbed 0.45% to close at \u00a510,172.06.\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 \u00a5120.05 \t\tlevel and was capped around the \u00a5121.90 level.\u00a0 The British pound \t\tmoved lower <\/strong>vis-\u00e0-vis the yen as sterling tested bids around the \t\t\u00a5132.00 figure while the Swiss franc moved lower <\/strong>vis-\u00e0-vis the \t\tyen and tested bids around the \u00a582.05 level. In Chinese news<\/strong>, the \t\tU.S. dollar appreciated vis-\u00e0-vis the Chinese yuan as the greenback \t\tclosed at CNY 6.8263 in the over-the-counter market, up from CNY \t\t6.8260.\u00a0 Data released in China today saw February manufacturing PMI \t\tdecline go 52.0 from 55.8, considerably weaker-than-expected.\u00a0 Revised \t\tU.S. TICS data released on Friday confirmed China is the largest holder \t\tof U.S. Treasuries. Foreign holdings of U.S. debt now totals US$ 2.7 \t\ttrillion in aggregate.<\/p>\n

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

The British pound weakened sharply \t\tvis-\u00e0-vis the U.S. dollar today<\/strong> as cable tested bids around the US$ \t\t1.4780 level and was capped around the $1.5200 figure.\u00a0 Cable moved \t\tlower as traders reacted to strong-than-expected U.K. GDP data that were \t\treleased on Friday.\u00a0 One theory suggests Prime Minister Brown may take \t\tadvantage of the stronger-than-expected GDP data by calling a general \t\telection earlier than previously expected.\u00a0 Sterling is lower on the \t\tpremise that the U.K. could have its first minority government in \t\tdecades. The opposition Tory power is largely expected to assume more \t\tafter more than one decade of Labour rule.\u00a0 Data released in the U.K. \t\ttoday saw January net lending to individuals increase to a total of \u20a42.0 \t\tbillion in January from \u20a41.5 billion in December.\u00a0 Also, February \t\tmanufacturing PMI was unchanged at 56.6 and January mortgage approvals \t\tcame in at 48,000, down from 58,000 in December.\u00a0 Cable bids are cited \t\taround the US$ 1.4455 level.\u00a0 The euro moved higher<\/strong> vis-\u00e0-vis the \t\tBritish pound as the single currency tested offers around the \u20a40.9145 \t\tlevel and was supported around the \u20a40.8965 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":"

Greek Prime Minister Papandreou is scheduled to meet German Chancellor Merkel in Berlin this week and there is speculation a deal may be reached…<\/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-7235","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7235","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=7235"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7235\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=7235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=7235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=7235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}