{"id":8194,"date":"2010-04-01T18:05:48","date_gmt":"2010-04-01T22:05:48","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8194"},"modified":"2010-04-01T18:05:48","modified_gmt":"2010-04-01T22:05:48","slug":"forex-daily-market-commentary-36","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/01\/forex-daily-market-commentary-36\/","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\t1.3585 level and was supported around the $1.3460 level. \u00a0The common \t\tcurrency extended recent gains and reached its highest level since 19 \t\tMarch as traders continued to cover shorts that were put on following \t\theightened sovereign credit woes in the eurozone in the first quarter.\u00a0 \t\tData released in the eurozone today saw German March PMI improve to 60.2 \t\twhile EMU-16 PMI improved to 56.6.\u00a0 Today\u2019s data are consistent with \t\tother recent economic data that confirm Germany \u2013 the eurozone\u2019s largest \t\teconomy \u2013 continues to drive economic growth in the bloc.\u00a0 On a negative \t\tnote, German retail sales fell 0.4% m\/m and were off 0.9% y\/y.\u00a0 \t\tLiquidity is expected to remain quite thin tomorrow and Monday in the \t\teurozone and the United Kingdom for the Easter and Passover holidays.\u00a0 \t\tTraders remain fixated on Greece\u2019s debt woes with a new wave of \t\tskepticism regarding the country\u2019s ability to successfully reduce its \t\tfiscal deficits and refinance its maturing debt in the second quarter.\u00a0 \t\tEuropean Central Bank member Kranjec reported the European Union \u201cwon\u2019t \t\tdo anything special\u201d to support Greece.\u00a0 In U.S. news<\/strong>, March \t\tChallenger jobs cuts were off 55.0% y\/y and weekly initial jobless \t\tclaims fell to 439,000 from the revised print of 445,000.\u00a0 Continuing \t\tjobless claims were narrowly lower at 4.662 million.\u00a0 Other data \t\treleased today saw the March ISM manufacturing index improve \t\tmore-than-expected to 59.6 from the prior reading of 56.5.\u00a0 Also, the \t\tMarch prices paid index was up significantly at 75.0 from the prior \t\treading of 67.0.\u00a0 Tomorrow\u2019s March non-farm payrolls data will cap an \t\tabbreviated trading week.\u00a0 Many economists are calling for job growth \t\taround the +185,000 area and upward revisions to recent months\u2019 data but \t\tsome are questioning how many job gains could be due to temporary \t\tfactors such as the U.S. census.\u00a0 U.S. Treasury Secretary Geithner \t\twarned it will be some time before large sustainable increases in jobs \t\tgrowth will be seen.\u00a0 New York Fed President Dudley reported \u201cnear term\u201d \t\tinflation will remain low and said muted U.S. economic growth will \t\twarrant low rates.\u00a0 Euro bids are cited around the US$ 1.3335 level.<\/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 \u00a594.05 level and was supported around the \u00a593.25 level. \u00a0As \t\texpected, Bank of Japan\u2019s Q1 Tankan survey of corporate sentiment \t\timproved q\/q with the large manufacturers\u2019 index up to -14 from -24 in \t\tQ4 and the non-manufacturer\u2019s index higher at -14 from -22. \u00a0Also, the \t\tlarge manufacturers\u2019 outlook improve to -8 from -21 in Q4 and Q1 \t\tall-industry capital expenditures improved to -0.4% from -10.8%.\u00a0 \t\tToday\u2019s improvement represented the Tankan\u2019s highest levels in eighteen \t\tmonths but they do not necessarily mean Japan\u2019s economy will evidence a \t\tmarked improvement, especially as final private demand remains tepid and \t\tdeflation remains a significant problem.\u00a0 There is market chatter that \t\tBank of Japan will lift its assessment of the economy at the BoJ Policy \t\tBoard meeting on 6-7 April, possibly on account of greater export \t\tactivity.\u00a0 BoJ\u2019s 30 April Policy Board meeting will include its \t\tsemi-annual economic projections and could be the meeting when Policy \t\tBoard members adjust policy further following last month\u2019s additional \t\teasing steps.\u00a0 There will be an Upper House election in July and \t\tpoliticians will likely pressure the central bank to make policy easier \t\tfar in advance of that election.\u00a0 The Nikkei 225 stock index gained \t\t1.39% to close at \u00a511,244.40. U.S. dollar offers are cited around the \t\t\u00a594.75 level.\u00a0 The euro moved higher <\/strong>vis-\u00e0-vis the yen as the \t\tsingle currency tested offers around the \u00a5127.50 level and was supported \t\taround the \u00a5125.95 level.\u00a0 The British pound moved higher <\/strong> vis-\u00e0-vis the yen as sterling tested offers around the \u00a5143.60 level \t\twhile the Swiss franc moved higher <\/strong>vis-\u00e0-vis the yen and tested \t\toffers around the \u00a590.00 figure. In Chinese news<\/strong>, the U.S. dollar \t\tappreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY \t\t6.8264 in the over-the-counter market, up from CNY 6.8259. Data released \t\tin China overnight saw March manufacturing PMI improve to 55.1 from 52.0 \t\tin February.\u00a0 People\u2019s Bank of China reported yesterday it will continue \t\tits moderately loose monetary policy.<\/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$ 1.5295 \t\tlevel and was supported around the $1.5170 level. \u00a0Bank of England \t\tissued its first quarter credit conditions survey today in which it \t\treported U.K. mortgage demand may rise in the second quarter.\u00a0 Data \t\treleased in the U.K. today saw March PMI manufacturing print at 57.2, up \t\tfrom the revised prior reading of 56.5.\u00a0 Cable bids are cited around the \t\tUS$ 1.4455 level.\u00a0 The euro moved lower<\/strong> vis-\u00e0-vis the British \t\tpound as the single currency tested bids around the \u00a30.8840 level and \t\twas capped around the \u00a30.8900 figure.<\/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\t1.0435 level and was capped around the CHF 1.0610 level. \u00a0Swiss National \t\tBank is said to have intervened in the market today by selling Swiss \t\tfrancs in what is estimated to have been a massive operation.\u00a0 Swiss \t\tmonetary, financial, and government officials have been warning that \t\tthey will not tolerate a further increase in the franc in recent weeks \t\tbut many traders speculated the central bank would not intervene to \t\tweaken the franc.\u00a0 Data released in Switzerland today saw the March PMI \t\tmanufacturing survey improve to 65.5 from the prior reading of 57.4.\u00a0 \t\tU.S. dollar offers are cited around the CHF 1.1180 level. The euro \t\tmoved higher<\/strong> vis-\u00e0-vis the Swiss franc as the single currency tested \t\toffers around the CHF 1.4410 level while the British pound moved \t\thigher<\/strong> vis-\u00e0-vis the Swiss franc and tested offers around the CHF \t\t1.6215 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":"

Bank of Japan\u2019s Q1 Tankan survey of corporate sentiment improved q\/q with the large manufacturers\u2019 index up to -14 from -24 in Q4 and the non-manufacturer\u2019s index higher…<\/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-8194","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8194","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=8194"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8194\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}