{"id":7370,"date":"2010-03-05T19:32:52","date_gmt":"2010-03-06T00:32:52","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7370"},"modified":"2010-03-05T19:32:52","modified_gmt":"2010-03-06T00:32:52","slug":"forex-daily-market-commentary-24","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/05\/forex-daily-market-commentary-24\/","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\t1.3630 level and was supported around the $1.3530 level. \u00a0The common \t\tcurrency continued to scale back recent losses as dealers reacted to \t\tgreater optimism concerning the likelihood that Greece\u2019s financial \t\tproblems can be managed without precipitating a national default.\u00a0 \t\tGerman Chancellor Merkel met with Greek Prime Minister Papandreou today \t\tand there was little indication that Germany is preparing to provide \t\tfinancial assistance to Greece.\u00a0 Papandreou reported Greece has not \t\tasked for financial aid and European Union official Junckers said he \t\thopes the markets will quiet down once more details about Greece\u2019s \t\tfiscal austerity plans are revealed. \u00a0One alternative plan is said to \t\tinvolve European Union members providing rescue financing to Greece.\u00a0 \t\tData released in the eurozone today saw German factory orders climb 4.3% \t\tm\/m in January, up sharply from December\u2019s upwardly revised -1.6% m\/m \t\tprint, while the year-on-year increase was 19.6% y\/y.\u00a0 European Central \t\tBank member Paramo called on distressed Spanish banks to assume losses \t\ton their balance sheets when they occur and determine if they need to \t\ttie-up with stronger financial institutions.\u00a0 ECB member Weber said the \t\tcommon currency will not become a weak currency.\u00a0 In U.S. news<\/strong>, \t\tdata released today saw weekly non-farm payrolls decline 36,000, off \t\tfrom the -26,000 January revision, while the February unemployment rate \t\tprinted at 9.7%, below expectations.\u00a0 February manufacturing payrolls \t\tactually evidenced 1,000 in job gains, down from the upwardly revised \t\t+20,000 result for January.\u00a0 Other data released today saw February \t\taverage hourly earnings increase 0.1% m\/m and 1.9% y\/y \u2013 both below \t\texpectations \u2013 while February average weekly hours worked ticked higher \t\tto 33.8.\u00a0 The Fed reported January consumer credit expanded US$ 5 \t\tbillion.\u00a0 Chicago Fed President Evans said additional indications of a \t\tsustainable economic recocery are required before there\u2019s more monetary \t\ttightening.\u00a0 Euro bids are cited around the US$ 1.3335 level.<\/p>\n

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

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

<\/strong><\/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 \u00a590.60 level and was supported around the \u00a588.95 level. \u00a0The \t\tpair moved higher on speculation Bank of Japan would move to expand its \t\tcredit easing policies further despite months of wrangling between the \t\tcentral bank and the government.\u00a0 Some BoJ-watchers are now reporting \t\tthe central bank will ease further at its next meeting on 16-17 March \t\tdespite comments from BoJ officials about the need to maintain fiscal \t\tdiscipline.\u00a0 Others think the BoJ could ease in April when two Policy \t\tBoard meetings are planned.\u00a0 March Japanese government bond futures \t\ttraded as high as 140.19 today, their highest level since 22 December \t\t2009.\u00a0 Shirakawa will attend the Bank for International Settlements \t\tmeeting in Basel in Basel next week.\u00a0 The Japanese government reportedly \t\tincreased its allowance for foreign exchange intervention in the draft \t\tbudget for its next fiscal year that starts at the end of this month.\u00a0 \t\tSome dealers suggest the new government may have as much as \u00a5145 \t\ttrillion with which to intervene.\u00a0 Bank of Japan Policy Board member \t\tNoda this week reported \u201cMaintaining fiscal discipline, in other words \t\tshowing a road map and implementing it decisively in a timely manner, is \t\tcritical\u201d to keep interest rates low.\u00a0 Noda also added deflation will \t\tcontinue through fiscal year 2011 and said overseas economies are \t\tJapan\u2019s largest risk factor.\u00a0 The Nikkei 225 stock index climbed 2.20% \t\tto close at \u00a510,368.96.\u00a0 U.S. dollar offers are cited around the \u00a594.75 \t\tlevel.\u00a0 The euro moved higher <\/strong>vis-\u00e0-vis the yen as the single \t\tcurrency tested offers around the \u00a5123.30 level and was supported around \t\tthe \u00a5120.85 level.\u00a0 The British pound moved higher <\/strong>vis-\u00e0-vis the \t\tyen as sterling tested offers around the \u00a5137.05 level while the \t\tSwiss franc moved higher <\/strong>vis-\u00e0-vis the yen and tested offers around \t\tthe \u00a584.30 level. In Chinese news<\/strong>, the U.S. dollar appreciated \t\tvis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8265 in the \t\tover-the-counter market, up from CNY 6.8264.\u00a0 Prime Minister Wen said \t\tthe government wants to keep the Chinese yuan stable and improve the \t\texchange rate mechanism.\u00a0 China\u2019s National People\u2019s Congress started \t\ttoday and traders will pay close attention to any policy announcements.\u00a0 \t\tOptions traders have become considerably bullish on the prospect on \t\tadditional yuan appreciation.\u201d\u00a0 PBoC is expected to raise banks\u2019 reserve \t\trequirements further this year.<\/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":"

German Chancellor Merkel met with Greek Prime Minister Papandreou today and there was little indication that Germany is preparing to provide financial assistance to Greece…<\/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-7370","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7370","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=7370"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7370\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=7370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=7370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=7370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}