{"id":8670,"date":"2010-04-19T18:04:36","date_gmt":"2010-04-19T22:04:36","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8670"},"modified":"2010-04-19T18:04:36","modified_gmt":"2010-04-19T22:04:36","slug":"forex-daily-market-commentary-45","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/19\/forex-daily-market-commentary-45\/","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$ 1.3415 level and was capped around \t\tthe $1.3495 level. \u00a0The common currency pushed lower as traders \t\tspeculated that more countries may ask the U.S. for information about \t\tGoldman Sachs\u2019s business practices, particularly with regard to the \t\tmanner in which Goldman structured some sub-prime mortgage securities \t\tthat were sold to international investors. \u00a0Germany is said to be \t\tpressing the U.S. for additional information.\u00a0 The common currency came \t\toff on this news on the premise that the enforcement action against \t\tGoldman may have a dampening effect on global equities, notwithstanding \t\tthe fact that U.S. equities rallied today.\u00a0 Also, the euro moved lower \t\tas the Icelandic volcano that erupted last week continues to snarl air \t\ttraffic, leading to a general disruption of business activity around the \t\tContinent.\u00a0 Data released in the U.S. today saw March leading indicators \t\tprint at +1.4%, up from the revised prior reading of +0.4%.\u00a0 Outgoing \t\tFederal Reserve Vice Chairman Kohn reported regulators should improve \t\ttheir data analysis while Chicago Fed President Evans reiterated the \t\teconomy is recovering.\u00a0 President Obama will be speak in New York on \t\tThursday at Cooper Union and Treasury Secretary Geithner today noted new \t\tregulations are needed so that the U.S. financial system is not \t\tvulnerable to \u201cthe reckless choices of individual firms.\u201d In eurozone \t\tnews<\/strong>, EMU-16 February construction output was off 3.3% m\/m and 15.2% \t\ty\/y.\u00a0 Euro bids are cited around the US$ 1.3175 level.<\/span><\/p>\n

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

The \t\tyen depreciated vis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as the greenback tested offers around the \u00a5<\/a>92.45 \t\tlevel and was supported around the \u00a591.60 level. \u00a0Data released in Japan \t\ttoday saw March consumer confidence print at 41.0, up from the prior \t\treading of 40.0, while March Tokyo department store sales improved to \t\t-5.1% y\/y from the prior reading of -6.5% y\/y.\u00a0 Other data saw March \t\tNationwide department store sales improve to -3.5% y\/y.\u00a0 February \t\tindustry index data will be released overnight followed by March machine \t\ttool orders and March convenience store sales.\u00a0 The Nikkei 225 stock \t\tindex lost 1.74% to close at \u00a510,908.77. \u00a0U.S. dollar offers are cited \t\taround the \u00a596.85 level.\u00a0 The euro moved higher <\/strong>vis-\u00e0-vis the yen \t\tas the single currency tested offers around the \u00a5124.65 level and was \t\tsupported around the \u00a5123.15 level.\u00a0 The British pound moved higher <\/strong>vis-\u00e0-vis the yen as sterling tested offers around the \u00a5141.75 level \t\twhile the Swiss franc moved higher <\/strong>vis-\u00e0-vis the yen and tested \t\toffers around the \u00a586.95 level. In Chinese news<\/strong>, the U.S. dollar \t\tappreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY \t\t6.8275 in the over-the-counter market, up from CNY 6.8255. \u00a0China\u2019s \t\tcurrency regulator today noted that China\u2019s capital account surplus \t\texpanded to US$ 144.8 billion in 2009, up from US$ 19 billion in 2008.\u00a0 \t\tThe perception of higher interest rates in China is likely to fuel more \t\tChina-bound investment capital.\u00a0 Many traders believe China will revalue \t\tits yuan\u2019s trading band imminently, possibly by widening its trading \t\tband by up to 3%. <\/span><\/p>\n

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

The British pound \t\tdepreciated vis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as \t\tcable tested bids around the US$ 1.5190 level and was capped around the \t\t$1.5340 level. \u00a0\u00a0Data to be released in the U.K. tomorrow include March \t\tconsumer price inflation.\u00a0 Prime Minister Brown and Tory leader Cameron \t\tdebated last week ahead of the 6 May general election.\u00a0 Many political \t\tpundits believe the contest will result in a hung Parliament and some \t\tnow say the general election is too close to call with Cameron perhaps \t\tstill holding a slight lead over Brown.\u00a0 Data released in the U.K. last \t\tweek saw March Nationwide consumer confidence print at 72, down from a \t\trevised +81.\u00a0 Cable bids are cited around the US$ 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 \u00a30.8840 level and was supported around the \t\t\u00a30.8785 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 1.0690 level and was \t\tsupported around the CHF 1.0615 level. \u00a0Data released in Switzerland \t\tlast week saw March producer and import prices climb 0.5% m\/m and 0.0% \t\ty\/y.\u00a0 Swiss National Bank Vice Chairman Jordan last 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 1.4360 level while the British pound moved lower<\/strong> vis-\u00e0-vis \t\tthe Swiss franc and tested bids around the CHF 1.6205 level. <\/span><\/p>\n

Forex Daily Market Commentary<\/strong><\/em> provided by<\/em><\/strong> GCI Financial Ltd<\/strong><\/a>.<\/strong><\/span><\/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":"

The common currency pushed lower as traders speculated that more countries may ask the U.S. for information about Goldman Sachs\u2019s business practices, particularly with regard…<\/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-8670","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8670","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=8670"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8670\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}