{"id":8629,"date":"2010-04-16T19:30:06","date_gmt":"2010-04-16T23:30:06","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8629"},"modified":"2010-04-16T19:30:06","modified_gmt":"2010-04-16T23:30:06","slug":"forex-daily-market-commentary-44","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/16\/forex-daily-market-commentary-44\/","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 depreciated \t\tvis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as the single \t\tcurrency tested bids around the US$ 1.3470 level and was capped around \t\tthe $1.3585 level. \u00a0The common currency failed to sustain early gains \t\tthis week and was pushed lower on Friday after U.S. equities tumbled.\u00a0 \t\tThe U.S. Securities and Exchange Commission filed fraud charges against \t\tGoldman Sachs for its involvement in the sub-prime mortgage crisis that \t\trocked the financial world.\u00a0 Shares in Goldman Sachs finished the week \t\tdown more than US$ 18 and today\u2019s news is likely to accelerate the Obama \t\tadministration\u2019s calls for greater regulatory reform, particularly over \t\tderivatives.\u00a0 The U.S. financial sector was doing decently following \t\tsome initial first quarter earnings reports from the likes of Bank of \t\tAmerica and JPMorgan Chase.\u00a0 Kansas City Fed President Hoenig said the \t\tFed should exit monetary policy as \u201cdelibertely as possible\u201d and called \t\ton the Fed to \u201ceventually\u201d reduce its balance sheet below US$ 1 \t\ttrillion.\u00a0 San Francisco Fed President Yellen warned the Fed has \t\t\u201cstepped on the gas as much as it can.\u201d\u00a0 Data released in the U.S. today \t\tsaw March housing starts gain 1.6% m\/m and building permits climbed 7.5% \t\tm\/m.\u00a0 Also, mid-April University of Michigan consumer sentiment fell \t\tback to 69.5 from the prior reding of 73.6.\u00a0 In eurozone news<\/strong>, \t\ttraders are closely monitoring the situation involving the Icelandic \t\tvolcano that erupted this week for the first time in nearly two \t\tcenturies.\u00a0 The volcano has prompted the cancellation of a significant \t\tnumber of flights across Europe and is having a negative impact on \t\tcross-border business. Eurozone finance ministers are said to have \t\tordered Greece to prepare to tap its credit facility with the European \t\tUnion and the International Monetary Fund. \u00a0European Central Bank member \t\tStark said he is skeptical about IMF loans to Greece and stressed Greece \t\tmust repay any bilateral loans it obtains.\u00a0 Data released in the \t\teurozone today saw March consumer price inflation up 0.9% m\/m and 1.4% \t\ty\/y with the core rate up 1.0% y\/y.\u00a0 Additionally, the February trade \t\tbalance came in at \u20ac 2.6 billion.\u00a0 Euro bids are cited around the US$ \t\t1.3175 level.<\/span><\/p>\n

<\/span><\/p>\n

\u00a5\/ CNY<\/span><\/strong><\/p>\n

The \t\tyen appreciated vis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as the greenback tested bids around the \u00a5<\/a>91.90 \t\tlevel and was capped around the \u00a593.15 level. \u00a0A Democratic Party of \t\tJapan legislator officially called for a 2% inflation target as a way to \t\tlift Japan out of its long-standing deflationary spiral, a policy that \t\thas been advocated by DPJ legislators for weeks.\u00a0 Yesterday, Bank of \t\tJapan upgraded its economic assessment in seven of the country\u2019s nine \t\tareas. The central bank reported the local economies \u201chad picked up, \t\talthough there remained differences in the pace and extent of the \t\trecovery.\u201d\u00a0 The upgrade increases the likelihood the central bank will \t\tincrease their estimates for economic growth and inflation when its \t\tsemi-annual outlook is released on 30 April.\u00a0 Data to be released in \t\tJapan next week include consumer confidence and machine tool orders.\u00a0 \t\tThe Nikkei 225 stock index lost 1.52% to close at \u00a511,102.18. \u00a0U.S. \t\tdollar offers are cited around the \u00a596.85 level.\u00a0 The euro moved \t\tlower <\/strong>vis-\u00e0-vis the yen as the single currency tested bids around \t\tthe \u00a5123.85 level and was capped around the \u00a5126.40 level.\u00a0 The \t\tBritish pound moved lower <\/strong>vis-\u00e0-vis the yen as sterling tested bids \t\taround the \u00a5141.30 level while the Swiss franc moved lower <\/strong> vis-\u00e0-vis the yen and tested bids around the \u00a586.45 level. In Chinese \t\tnews<\/strong>, the U.S. dollar depreciated vis-\u00e0-vis the Chinese yuan as the \t\tgreenback closed at CNY 6.8255 in the over-the-counter market, down from \t\tCNY 6.8260. \u00a0People\u2019s Bank of China adviser Li Daokui said China has \t\treached a \u201cconsensus\u201d on adjusting its exchange rate gradually and is \t\tnot bowing to U.S. pressure by allowing the yuan to appreciate.\u00a0 Many \t\tdata were released in China this week.\u00a0 First, Q1 real GDP came in on \t\tthe high end of expectations, printing at an annualized growth rate of \t\t11.9% y\/y.\u00a0 Also, the March producer price index was up 5.9% y\/y and \t\tMarch consumer prices were up 2.4% y\/y. \u00a0Additionally, March retail \t\tsales were up 18.0% y\/y and March industrial production was up 18.1% \t\ty\/y.\u00a0 These data make it extremely likely the Chinese government will \t\trevalue its yuan currency or widen its trading band by an estimated \t\t2-3%.\u00a0 Some traders believe this move could take place as early as next \t\tweek while most China-watchers believe it will happen before the end of \t\tthe second quarter. <\/span><\/p>\n

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

The British pound \t\tdepreciated sharply vis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as cable tested bids around the US$ 1.5365 level and was capped around \t\tthe $1.5505 level. \u00a0\u00a0Prime Minister Brown and Tory leader Cameron \t\tdebated this week ahead of the 6 May general election.\u00a0 Many political \t\tpundits believe the contest will result in a hung Parliament and some \t\tnow say the general election is too close to call with Cameron perhaps \t\tstill holding a slight lead over Brown.\u00a0 Data released in the U.K. this \t\tweek saw March Nationwide consumer confidence print at 72, down from a \t\trevised +81.\u00a0 Cable bids are cited around the US$ 1.5140 level.\u00a0 The \t\teuro moved higher<\/strong> vis-\u00e0-vis the British pound as the single currency \t\ttested offers around the \u00a30.8800 figure and was supported around the \t\t\u00a30.8745 level.<\/span><\/p>\n

<\/span><\/p>\n

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

The Swiss franc \t\tdepreciated vis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as \t\tthe greenback tested offers around the CHF 1.0630 level and was \t\tsupported around the CHF 1.0560 level. \u00a0Data released in Switzerland \t\ttoday saw March producer and import prices climb 0.5% m\/m and 0.0% y\/y.\u00a0 \t\tSwiss National Bank Vice Chairman Jordan this week said regulators \t\tcannot allow governments to be \u201cblackmailed\u201d into protecting banks from \t\tcollapse during future financial crises.\u00a0 There was talk yesterday that \t\tthe Swiss National Bank may have sold francs for euro this week in an \t\tintervention to try and support the Swiss export sector.\u00a0 U.S. dollar \t\toffers are cited around the CHF 1.0920 level.\u00a0 The euro moved lower<\/strong> vis-\u00e0-vis the Swiss franc as the single currency tested bids around the \t\tCHF 1.4325 level while the British pound moved lower<\/strong> vis-\u00e0-vis \t\tthe Swiss franc and tested bids around the CHF 1.6290 level. <\/span><\/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


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The U.S. Securities and Exchange Commission filed fraud charges against Goldman Sachs for its involvement in the sub-prime mortgage crisis that rocked the financial world…<\/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-8629","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8629","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=8629"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8629\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}