{"id":8505,"date":"2010-04-12T15:58:26","date_gmt":"2010-04-12T19:58:26","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8505"},"modified":"2010-04-12T15:58:26","modified_gmt":"2010-04-12T19:58:26","slug":"forex-daily-market-commentary-43","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/12\/forex-daily-market-commentary-43\/","title":{"rendered":"Forex Daily Market Commentary"},"content":{"rendered":"

By GCI Forex Research<\/strong><\/p>\n

Fundamental Outlook at 1400 GMT (EDT + 0400)<\/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\t1.3690 level and was supported around the $1.3565 level. \u00a0The common \t\tcurrency extended gains from late last week after it was reported that \t\teurozone officials reached an agreement to provide financial assistance \t\tto Greece if that country cannot meet its refinancing needs in the \t\tmarket.\u00a0 Greece has billions of euro in bonds maturing over the next \t\tcouple of months and the recent increase in Greek yields may render it \t\ttoo expensive \u2013 or even impossible \u2013 for Greece to refinance its \t\tmaturing debt.\u00a0 The package offered by Greek officials is said to total \t\tsome US$ 61 billion.\u00a0 The spread between Greek ten-year bonds and German \t\tbunds narrowed today to around 350bps.\u00a0 Dealers will again focus on the \t\tsignificant fiscal problems of Spain and Portugal and eurozone officials \t\tmay be forced to assist them as well.\u00a0 European Central Bank President \t\tTrichet reported the Greek plan as a \u201cpositive\u201d step and called on the \t\tGreek government to meet its fiscal obligations.\u00a0 German Chancellor \t\tMerkel is said to be facing major criticisms in her country for agreeing \t\tto the new financial assistance to Greece at below-market rates.\u00a0 Data \t\tto be released in Germany tomorrow include March consumer price \t\tinflation followed by French February current account data and March \t\tconsumer price inflation data on Wednesday.\u00a0 In U.S. news<\/strong>, the \t\tMarch monthly budget statement printed at \u2013US$ 65.4 billion.\u00a0 Data to be \t\treleased in the U.S. tomorrow include the March NFIB small business \t\toptimism index, February trade balance, and March import price index.\u00a0 \t\tFed Governors Duke and Tarullo spoke today about non-monetary issues.\u00a0 \t\tEuro bids are cited around the US$ 1.3175 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 \u00a5<\/a>93.60 level and was supported around \t\tthe \u00a592.90 level. \u00a0Minutes from the Bank of Japan Policy Board meeting \t\ton 16-17 March were released overnight in which some rate-setters \t\tconcluded \u201cthere was no solid justification for enhancing monetary \t\tconditions. The market may also increasingly come to consider that the \t\tbank would take whatever policy action the market has anticipated.\u201d\u00a0 BoJ \t\tpolicymakers doubled a lending program for commercial banks to \u00a520 \t\ttrillion.\u00a0 Many members said the program\u2019s expansion \u201creaffirmed the \t\tbank\u2019s stance on continuing to consistently make a contribution\u201d to \t\timprove economic growth and overcome deflation.\u00a0 One common criticism is \t\tthat the program will accomplish little as far as actually improving \t\tliquidity measures in the real economy and stimulating final private \t\tdemand.\u00a0 Data released in Japan overnight saw March bank lending decline \t\t1.8% y\/y, worse than the prior reading of -1.5%.\u00a0 \u00a0Data to be released \t\tin the Australasian session will include the March domestic corporate \t\tgoods price index and March Tokyo-area condominium sales.\u00a0 The Nikkei \t\t225 stock index climbed 0.42% to close at 11,251.90.\u00a0 U.S. dollar offers \t\tare cited around the \u00a596.85 level.\u00a0 The euro moved higher <\/strong> vis-\u00e0-vis the yen as the single currency tested offers around the \t\t\u00a5127.45 level and was supported around the \u00a5126.60 level.\u00a0 The \t\tBritish pound moved higher <\/strong>vis-\u00e0-vis the yen as sterling tested \t\toffers around the \u00a5144.50 level while the Swiss franc moved higher <\/strong>vis-\u00e0-vis the yen and tested offers around the \u00a588.30 level. In \t\tChinese news<\/strong>, the U.S. dollar appreciated vis-\u00e0-vis the Chinese yuan \t\tas the greenback closed at CNY 6.8257 in the over-the-counter market, up \t\tfrom CNY 6.8236. \u00a0U.S. and Chinese officials will convene in Washington, \t\tD.C. this week to discuss China\u2019s exchange rate policy and other \t\tfinancial aspects of the bilateral relationship.\u00a0 China today reported \t\tits foreign exchange reserves totaled US$ 2.447 trillion at the end of \t\tMarch.\u00a0 Also, China\u2019s trade surplus in the first quarter was off 77% to \t\tUS$ 14.49 billion. \u00a0China is said to have posted a rare US$ 7.24 billion \t\ttrade deficit in March.<\/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$ 1.5485 \t\tlevel and was supported around the $1.5365 level. \u00a0Traders are closely \t\tmonitoring the lead-up to the U.K. general election on 6 May amid talk \t\tthat Prime Minister Brown may have narrowed the gap against Tory \t\tchallenger Cameron, the presumed favourite.\u00a0 Dealers are still \t\tspeculating the most likely scenario will be a hung Parliament and \t\tsterling has generally been weaker as a result of this premise.\u00a0 Data to \t\tbe released in the Australasian session include the BRC March retail \t\tsales monitor and the March RICS house price balance.\u00a0 Cable bids are \t\tcited around the US$ 1.5140 level.\u00a0 The euro moved higher<\/strong> vis-\u00e0-vis the British pound as the single currency tested offers around \t\tthe \u00a30.8845 level and was supported around the \u00a30.8805 level.<\/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\t1.0530 level and was capped around the CHF 1.0615 level. \u00a0Data to be \t\treleased in Switzerland tomorrow include the March producer and import \t\tprice index. On Friday, Swiss National Bank Governing Board member \t\tDanthine said \u201cavoiding inflation\u201d is a \u201cmedium-term\u201d challenge.\u00a0 Data \t\treleased in Switzerland last week saw the March unemployment rate \t\tdecline to 4.2% from 4.4% in February.\u00a0 U.S. dollar offers are cited \t\taround the CHF 1.0920 level.\u00a0 The euro moved lower<\/strong> vis-\u00e0-vis the \t\tSwiss franc as the single currency tested bids around the CHF 1.4380 \t\tlevel while the British pound moved lower<\/strong> vis-\u00e0-vis the Swiss \t\tfranc and tested bids around the CHF 1.6270 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":"

Data to be released in Switzerland tomorrow include the March producer and import price index. On Friday, Swiss National Bank Governing Board member Danthine said \u201cavoiding inflation\u201d is a \u201cmedium-term\u201d challenge…<\/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-8505","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8505","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=8505"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8505\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}