{"id":8291,"date":"2010-04-06T18:04:30","date_gmt":"2010-04-06T22:04:30","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8291"},"modified":"2010-04-06T18:04:30","modified_gmt":"2010-04-06T22:04:30","slug":"forex-daily-market-commentary-39","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/06\/forex-daily-market-commentary-39\/","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 depreciated vis-\u00e0-vis the U.S. \t\tdollar today<\/strong> as the single currency tested bids around the US$ \t\t1.3355 level and was capped around the $1.3495 level. \u00a0The common \t\tcurrency fell significantly on new concerns about Greece\u2019s fiscal \t\tcondition.\u00a0 A report suggested Greece may try to bypass the \t\tInternational Monetary Fund\u2019s involvement in financial assistance to the \t\tcountry because the conditions may be too tight.\u00a0 Greek finance minister \t\tPapaconstantinou denied the report and said the country has never sought \t\tto exclude the IMF from the rescue package.\u00a0 Greece needs to borrow \t\tabout \u20ac42 billion in 2010 and this may include as much as US$ 10 billion \t\tin U.S. dollar bonds.\u00a0 IMF officials are expected to meet with Greek \t\tofficials again this week.\u00a0 In another report, there is talk that Greek \t\tinvestors and corporations are moving assets outside of Greece for asset \t\tprotection purposes.\u00a0 This is the latest chapter in the Greek saga and \t\tit is likely not the last.\u00a0 Some dealers have suggested Greece\u2019s woes \t\tare analogous to AIG\u2019s and have compared the situations involving \t\tPortugal and Spain to Lehman\u2019s troubles, in reference to the U.S. \t\tinvestment banking giant that was not bailed out.\u00a0 Data released in the \t\teurozone today saw the April Sentix investor confidence index print at \t\t+2.5, up from the prior reading of -7.2. \u00a0EMU-16 March PMI data will be \t\treleased tomorrow.\u00a0 In U.S. news<\/strong>, minutes from the Federal Open \t\tMarket Committee\u2019s March meeting were released today and they reported \t\t\u201cWhile recent data pointed to a noticeable pickup in the pace of \t\tconsumer spending during the first quarter, participants agreed that \t\thousehold spending going forward was likely to remain constrained by \t\tweak labor market conditions, lower housing wealth, tight credit, and \t\tmodest income growth.\u201d\u00a0 The minutes also revealed \u201cParticipants saw \t\trecent inflation readings as suggesting a slightly greater deceleration \t\tin consumer prices than had been expected. A number of participants \t\tobserved that moderation in price changes was widespread across many \t\tcategories of spending.\u201d Most dealers believe the Fed will wait to raise \t\tits benchmark federal funds target rate for several months because they \t\twant to see if consumer prices are more inflationary or deflationary and \t\tthey will want to see ongoing improvements in the U.S. labour market.\u00a0 \t\tIt was reported on Friday that March non-farm payrolls expanded at their \t\thighest rate in three years. Minneapolis Fed President Kocherlakota \t\ttoday said he supports the gradual sale of mortgage-backed securities. \t\tThe Fed last week ended a massive US$ 1.25 trillion MBS-buying program \t\tthat provided liquidity to the financial system.\u00a0 Euro bids are cited \t\taround the US$ 1.3175 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 \u00a593.65 level and was capped around the \u00a594.35 level. Finance \t\tMinister Kan reported Bank of Japan Governor Shirakawa is \u201cdoing a very \t\tgood job.\u201d\u00a0 Financial services minister Kamei reported the government \t\twill need to enact additional fiscal measures to stop the strong \t\tdeflationary pressures that are evident.\u00a0 Japan\u2019s ability to implement \t\tadditional budgetary stimuli is rather limited given the massive amount \t\tof outstanding Japanese government bonds. Data released in Japan today \t\tsaw the February coincident index improve to 100.7 from 100.3 while the \t\tFebruary leading economic index improved to 97.9 from 96.7.\u00a0 The central \t\tbank may increase its assessment of the Japanese economy on account of \t\tan improvement in the export sector and the recent improvement in the \t\tTankan survey of corporate sentiment.\u00a0 The Nikkei 225 stock index lost \t\t0.50% to close at \u00a511,282.32. U.S. dollar offers are cited around the \t\t\u00a596.85 level.\u00a0 The euro moved lower <\/strong>vis-\u00e0-vis the yen as the \t\tsingle currency tested bids around the \u00a5125.35 level and was capped \t\taround the \u00a5127.35 level.\u00a0 The British pound moved lower <\/strong> vis-\u00e0-vis the yen as sterling tested bids around the \u00a5142.05 level while \t\tthe Swiss franc moved lower <\/strong>vis-\u00e0-vis the yen and tested bids \t\taround the \u00a587.50 level. In Chinese news<\/strong>, the U.S. dollar was \t\tunchanged vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY \t\t6.8257 in the over-the-counter market. \u00a0The big news involving China \t\tcontinues to be that the Obama administration is delaying the release of \t\ta report due 15 April that could have potentially labeled China a \t\tcurrency manipulator.\u00a0 The move to delay the release of the report could \t\tsignal negotiations are ongoing between the two countries or could \t\tsignal China may let the yuan appreciate further in the coming days.\u00a0 \t\tChinese leadership will visit Washington, D.C. on 12-13 April.\u00a0 It was \t\treported today that China\u2019s net foreign debt totaled US$ 428.6 billion \t\tat the end of 2009, up 14% y\/y.<\/p>\n

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

The British pound depreciated vis-\u00e0-vis \t\tthe U.S. dollar today<\/strong> as cable tested bids around the US$ 1.5125 \t\tlevel and was supported around the $1.5305 level. Cable spun lower after \t\tPrime Minister Brown called for a general election on 6 May and \t\tParliament was dissolved.\u00a0 The consensus is that the election could end \t\tin a hung Parliament even if challenger Cameron of the Tory party \t\tunseats the unpopular Brown.\u00a0 Data released in the U.K. today saw March \t\tconstruction PMI improve to 53.1 from 48.5 in February.\u00a0 Cable bids are \t\tcited around the US$ 1.4455 level.\u00a0 The euro moved lower<\/strong> vis-\u00e0-vis the British pound as the single currency tested bids around \t\tthe \u00a30.8765 level and was capped around the \u00a30.8860 level.<\/p>\n

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

The Swiss franc depreciated vis-\u00e0-vis \t\tthe U.S. dollar today<\/strong> as the greenback tested offers around the CHF \t\t1.0720 level and was supported around the CHF 1.0610 level. Data \t\treleased in Switzerland today saw March consumer price inflation up 0.1% \t\tm\/m and 1.4% y\/y.\u00a0 Swiss National Bank is said to have intervened in the \t\tmarket last week by selling Swiss francs in what is estimated to have \t\tbeen a massive operation.\u00a0 Swiss monetary, financial, and government \t\tofficials have been warning that they will not tolerate a further \t\tincrease in the franc in recent weeks but many traders speculated the \t\tcentral bank would not intervene to weaken the franc on account of \t\tgrowth in the Swiss economy.\u00a0 While forecasts for economic growth and \t\tinflation have both been upwardly revised in recent weeks, SNB\u2019s latest \t\tprobable intervention underscores their commitment to preserving an \t\texport-driven recovery.\u00a0 \u00a0U.S. dollar offers are cited around the CHF \t\t1.0920 level.\u00a0 The euro moved lower<\/strong> vis-\u00e0-vis the Swiss franc as \t\tthe single currency tested bids around the CHF 1.4315 level while the \t\tBritish pound moved higher<\/strong> vis-\u00e0-vis the Swiss franc and tested \t\toffers around the CHF 1.6335 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":"

Greece needs to borrow about \u20ac42 billion in 2010 and this may include as much as US$ 10 billion in U.S. dollar bonds. IMF officials are expected to meet with Greek officials again this week…<\/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-8291","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8291","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=8291"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8291\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}