{"id":7982,"date":"2010-03-25T16:43:35","date_gmt":"2010-03-25T20:43:35","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7982"},"modified":"2010-03-25T16:43:35","modified_gmt":"2010-03-25T20:43:35","slug":"forex-daily-market-commentary-33","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/25\/forex-daily-market-commentary-33\/","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\t1.3370 level and was supported around the $1.3285 level. \u00a0The common \t\tcurrency clawed back some of yesterday\u2019s sizable losses with late \t\tAustralasian activity lifting the pair from intraday lows.\u00a0 People\u2019s \t\tBank of China Vice Governor Zhu warned \u201cI \t\tdon’t think Greece will go bankrupt because it’s still relatively small, \t\tbut we don’t see decisive action that tells the market, ‘We can solve \t\tit, we can close it.\u201d\u00a0 Zhu added Spain and Italy are the \u201cmain concern \t\ttoday.\u201d\u00a0 European Union officials are convening today at a summit to try \t\tand shore up support for financial assistance for Greece.\u00a0 Data released \t\tin the eurozone today saw the German GfK consumer confidence survey \t\tremain flat at 3.2 for April while the EMU-16 M3 money supply was off \t\t0.4%, more-than-expected.\u00a0 German Chancellor Merkel reported she will \t\trecommend a combination of International Monetary Fund assistance and \t\tbilateral aid \u201cas a last resort\u201d for Greece.\u00a0 European Central Bank \t\tmember Wellink said Portugal needs to do \u201cadditional things\u201d to be \t\tcredible while Ecofin Chairman Juncker said the markets will come to see \t\tGreece\u2019s budget plans as \u201ccredible.\u201d Bank of England Monetary Policy \t\tCommittee member Posen said the inflation rate in the eurozone will \t\t\u201ckeep going down.\u201d\u00a0 ECB President Trichet reported the central bank will \t\tmaintain its emergency collateral rules \u201cbeyond the end of 2010.\u201d\u00a0 \t\tTrichet reported Greece\u2019s efforts to restore fiscal soundness are \t\t\u201cconvincing\u201d and \u201ccourageous.\u201d\u00a0 The ECB\u2019s move to maintain an easy and \t\tflexible collateral eligibility into 2011 give the central bank room to \t\taccept the debt of fiscally-troubled eurozone states as collateral.\u00a0 \t\tECB\u2019s Nowotny reported the euro will remain an important international \t\tcurrency.\u00a0 In U.S. news<\/strong>, data released today saw weekly initial \t\tjobless claims decline to 442,000 from a revised 456,000 while \t\tcontinuing jobless claims fell to 4.648 million from a revised 4.702 \t\tmillion.\u00a0 Data to be released in the U.S. tomorrow include Q4 GDP and \t\tfinal March University of Michigan consumer sentiment.\u00a0 Fed Chairman \t\tBernanke testified today and said the \u201ceconomy continues to require the \t\tsupport of accommodative monetary policies\u2026However, we have been working \t\tto ensure that we have the tools to reverse, at the appropriate time, \t\tthe currently very high degree of monetary stimulus\u2026As the expansion \t\tmatures, the Federal Reserve will need to begin to tighten monetary \t\tconditions to prevent the development of inflationary pressures. We have \t\tfull confidence that, when the time comes, we will be ready to do so.\u201d\u00a0 \t\tThe Fed will end one of its emergency mortgaged-backed securities \t\tpurchase programs at the end of this month and Bernanke said the Fed \t\tdoes not anticipate the Fed to sell the US$ 1.43 trillion in housing \t\tdebt it picked up \u201cin the near term,\u201d noting the Fed will likely wait \t\t\u201cat least until after policy tightening has gotten under way and the \t\teconomy is clearly in a sustainable recovery.\u201d\u00a0 The initial jobless \t\tclaims data may be pointing to an improving labour sector and many \t\teconomists expect the March non-farm payrolls report will evidence \t\tdecent jobs growth for the first time in several months.\u00a0 Euro \t\tbids 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 \u00a591.75 level and was capped around the \u00a592.35 level. \u00a0Bank of Japan \t\tPolicy Board member Kamezaki dovishly reported \u201cThe central bank will \t\timplement policy proactively if necessary, and last week\u2019s monetary \t\teasing was based on such a stance,\u201d adding the BoJ will maintain an \t\t\u201cextremely accommodative\u201d policy.\u00a0 Many dealers believe the government \t\twill continue to pressure the central bank into easing policy further to \t\tcounter significant deflationary pressures.\u00a0 Such moves are basically \t\tintended to boost consumer and investor sentiment and do not have an \t\tappreciable impact on the provision of liquidity.\u00a0 Data released in \t\tJapan overnight saw the February corporate service price index decline \t\t1.3% y\/y.\u00a0 The Nikkei 225 stock index climbed 0.13% to close at \t\t\u00a510,828.85.\u00a0 U.S. dollar offers are cited around the \u00a594.75 level.\u00a0 The euro moved higher <\/strong>vis-\u00e0-vis the yen as the single currency \t\ttested offers around the \u00a5123.20 level and was supported around the \t\t\u00a5122.25 level.\u00a0 The British pound moved higher <\/strong>vis-\u00e0-vis the yen \t\tas sterling tested offers around the \u00a5138.00 figure while the Swiss \t\tfranc moved higher <\/strong>vis-\u00e0-vis the yen and tested offers around the \t\t\u00a586.25 level. In Chinese news<\/strong>, the U.S. dollar appreciated \t\tvis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8271 in the \t\tover-the-counter market, up from CNY 6.8267. \u00a0People\u2019s Bank of China \t\tDeputy Governor Zhu Min reported interest rates are a \u201cheavy-duty \t\tweapon,\u201d adding there are other tools the central bank can use to \t\t\u201cmanage liquidity.\u201d\u00a0 Zhu also added China will wait to confirm economic \t\tgrowth is steady before raising rates.\u00a0 Additionally, Zhu reported the \t\tyuan\u2019s real exchange rate \u201chas actually appreciated.\u201d<\/p>\n

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

The British pound appreciated vis-\u00e0-vis \t\tthe U.S. dollar today<\/strong> as cable tested offers around the US$ 1.5005 \t\tlevel and was supported around the $1.4855 level. \u00a0Cable briefly popped \t\tabove the psychologically-important US$ 1.50 figure during European \t\tdealing but traders pushed the pair back below the $1.49 figure during \t\tthe North American session.\u00a0 Data released in the U.K. today saw \t\tFebruary retail sales record their largest jump since May 2008, up 2.1% \t\tm\/m and 3.5% y\/y.\u00a0 Chancellor of the Exchequer Darling reported his \t\tlatest economic growth forecast is \u201cin line with the Bank of England \t\tforecast.\u201d\u00a0 Darling yesterday reported he plans to \u201creduce borrowing \t\tfurther.\u201d\u00a0 Darling yesterday reduced his budget deficit forecast for the \t\tnext five fiscal years by \u00a344 billion.\u00a0 On the whole, Darling\u2019s fiscal \t\treport was more proactive than expected about addressing the U.K.\u2019s \t\tfiscal problems.\u00a0 The U.K.\u2019s 2009-2010 budget deficit is expected to \t\ttotal around \u00a3167 billion and be slightly less in the 2010-2011 fiscal \t\tyear.\u00a0 Cable bids are cited around the US$ 1.4455 level.\u00a0 The euro \t\tmoved lower<\/strong> vis-\u00e0-vis the British pound as the single currency \t\ttested bids around the \u00a30.8895 level and was capped around the \u00a30.8955 \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\t1.0675 level and was capped around the CHF 1.0740 level. \u00a0The KOF \t\tInstitute\u2019s March economic forecast will be released tomorrow.\u00a0 Swiss \t\tPresident Leuthard said the franc is \u201cat a quite crucial level\u201d and said \t\tit is up to the Swiss National Bank to decide whether to intervene.\u00a0 \t\tSwiss National Bank Vice Chairman Jordan reiterated yesterday the \t\tcentral bank will work to prevent excessive franc appreciation.\u00a0 Swiss \t\tNational Bank President Hildebrand yesterday reported the central bank \t\twill \u201cdecisively\u201d act against \u201cexcessive\u201d franc strength, noting the \t\tcentral bank can intervene to a \u201cvery large extent.\u201d\u00a0 Swiss National \t\tBank on Monday published its quarterly economic report today and noted \t\tit will continue to \u201cact decisively\u201d to prevent an \u201cexcessive\u201d \t\tappreciation of the franc.\u00a0 U.S. dollar offers are cited around the CHF \t\t1.1180 level. The euro came off<\/strong> vis-\u00e0-vis the Swiss franc as the \t\tsingle currency tested bids around the CHF 1.4250 level while the \t\tBritish pound moved higher<\/strong> vis-\u00e0-vis the Swiss franc and tested \t\toffers around the CHF 1.6040 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

People\u2019s \t\tBank of China Vice Governor Zhu warned \u201cI \t\tdon’t think Greece will go bankrupt because it’s still relatively small, \t\tbut we don’t see decisive action that tells the market,<\/div>\n","protected":false},"excerpt":{"rendered":"

People\u2019s Bank of China Vice Governor Zhu warned \u201cI don’t think Greece will go bankrupt because it’s still relatively small, but we don’t see decisive action that tells the market,…<\/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-7982","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7982","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=7982"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7982\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=7982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=7982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=7982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}