{"id":8795,"date":"2010-04-23T16:25:01","date_gmt":"2010-04-23T20:25:01","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8795"},"modified":"2010-04-23T16:25:01","modified_gmt":"2010-04-23T20:25:01","slug":"forex-daily-market-commentary-48","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/23\/forex-daily-market-commentary-48\/","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\t1.3375 level and was supported around the $1.3200 figure. \u00a0The common \t\tcurrency retraced some of its intraweek losses after Greece officially \t\trequested financial assistance from the European Union and the \t\tInternational Monetary Fund.\u00a0 The European Commission, European Central \t\tBank, and the Eurogroup reported they are \u201ctaking note\u201d of Greece\u2019s \t\trequest to \u201cactivate the financial support mechanism,\u201d adding they \u201cwill \t\tdecide upon the activation of this mechanism.\u201d\u00a0 There is market talk \t\tthat Greece will receive its first funding tranche before 19 May.\u00a0 \u00a0The \t\tspeed with which the European Union agrees to rescue Greece will \t\tpartially be determined by the speed with which German Chancellor Merkel \t\tcan push the unpopular bailout through the German legislature.\u00a0 \t\tYesterday, Greece\u2019s debt ratings were downgraded by Moody\u2019s Investor \t\tServices. The activation of the financial assistance package for Greece \t\twill provide the country with a little bit of financial stability but \t\tthere is talk that Greece will require well in excess of \u20ac100 billion in \t\taid from the international community.\u00a0 Additionally, the euro may still \t\tcontinue to probe new multi-month lows because there is a higher threat \t\tthat contagion will see Greece\u2019s fiscal problems move to other \t\thighly-indebted eurozone countries including Portugal and Spain.\u00a0 G-7 \t\tand G-20 officials will discuss sovereign credit risk, exchange rates, \t\tGreece, global financial reform, and other key topical issues when they \t\tconvene this weekend in Washington, D.C.\u00a0 Eurozone February industrial \t\tnew orders were up 1.5% m\/m and 12.2% y\/y in data released today.\u00a0 Also, \t\tthe German April Ifo business climate index rallied to 101.6 from 98.2 \t\twhile the April Ifo current assessment index improved to 99.3 and the \t\tApril Ifo expectations index rallied to 101.9.\u00a0 Also, French March \t\tconsumer spending was up 1.2% m\/m and 2.5% y\/y.\u00a0 In U.S. news<\/strong>, \t\tdata released today saw March durable goods orders decline 1.3%, a \t\treversal from the revised prior reading of +1.1%, while the \t\tex-transportation component was up 2.8%, up from the revised prior \t\treading of 1.7%.\u00a0 Also, March new home sales were up 26.9% y\/y to an \t\tannualized 411,000 units, a multi-decade record-setting pace.\u00a0 Press \t\treports suggest Federal Reserve Chairman Bernanke is not convinced about \t\tthe timing of asset sales to reduce the Fed\u2019s balance sheet.\u00a0 Euro bids \t\tare cited around the US$ 1.3175 level.<\/p>\n

\u00a5\/ CNY<\/span><\/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>94.20 level and was supported around \t\tthe \u00a593.30 level. \u00a0The pair continues to rise as there are increasing \t\tsigns the U.S. economic recovery is taking root.\u00a0 The Japanese media is \t\treporting Bank of Japan may raise its consumer price index forecast for \t\tfiscal year 2011 to near zero per cent growth, up from January\u2019s \t\testimate of -0.2%.\u00a0 Bank of Japan Governor Shirakawa spoke yesterday and \t\treported inflation targets are one cause of asset price bubbles.\u00a0 It is \t\tlikely that Shirakawa and other BoJ officials will resist the \t\tgovernment\u2019s likely call to adopt an inflation target, perhaps as high \t\tas 2% per year.\u00a0 Ahead of this weekend\u2019s G-7 and G-20 meetings in \t\tWashington, D.C., Shirakawa said exchange rates should not be utilized \t\tto resolve trade disputes. \u00a0Data released in Japan overnight saw the \t\tFebruary all-industry activity index decline 2.3% m\/m, a reversal from \t\tthe upwardly revised +3.4% climb in January.\u00a0 \u00a0The Nikkei 225 stock \t\tindex lost 0.32% to close at \u00a510,914.46.\u00a0 U.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 \u00a5125.20 level and was \t\tsupported around the \u00a5123.40 level.\u00a0 The British pound moved higher <\/strong>vis-\u00e0-vis the yen as sterling tested bids around the \u00a5144.50 level \t\twhile the Swiss franc moved higher <\/strong>vis-\u00e0-vis the yen and tested \t\toffers around the \u00a587.30 level. In Chinese news<\/strong>, the U.S. dollar \t\tappreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY \t\t6.8274 in the over-the-counter market, up from CNY 6.8264. \u00a0Attention \t\twill be focused on the G-7 and G-20 meetings in Washington, D.C. this \t\tweekend to determine how much multilateral pressure there is on China to \t\trevalue its yuan currency.\u00a0 Many China-watchers believe China may allow \t\tthe yuan to appreciate at any time between now and the end of the \t\tquarter.\u00a0 Data released in China overnight saw the March leading index \t\tdecline to 104.98 from the revised prior reading of 105.11.<\/p>\n

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

The British pound depreciated vis-\u00e0-vis \t\tthe U.S. dollar today<\/strong> as cable tested bids around the US$ 1.5295 \t\tlevel and was capped around the $1.5400 figure. \u00a0Data released in the \t\tU.K. today saw Q1 gross domestic product up 0.2% q\/q and off 0.3% y\/y, \t\tlower-than-expected on the quarterly basis and stronger-than-expected on \t\tthe year-over-year basis.\u00a0 Prime Minister Brown will likely note these \t\tdata suggest the economy is accelerating while his opponents in the 6 \t\tMay General Election will note that economic growth remains very weak.\u00a0 \t\tMany political pundits believe the contest will result in a hung \t\tParliament and some now say the general election is too close to call \t\twith Cameron perhaps still holding a slight lead over Brown.\u00a0 Cable bids \t\tare cited around the US$ 1.5140 level.\u00a0 The euro moved higher<\/strong> vis-\u00e0-vis the British pound as the single currency tested offers around \t\tthe \u00a30.8700 figure and was supported around the \u00a30.8605 level.<\/p>\n

CHF<\/span><\/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\t1.0850 level and was supported around the CHF 1.0745 level. \u00a0Swiss \t\tNational Bank Chairman Hildebrand said he is \u201cskeptical\u201d of the \t\tInternational Monetary Fund\u2019s G-20 bank tax proposal.\u00a0 Swiss National \t\tBank and Swiss regulators announced new regulations this week that \t\tmandate UBS and Credit Suisse to hold larger amounts of reserves to \t\tdefend against crisis scenarios.\u00a0 Data released in Switzerland today saw \t\tthe March trade balance expand to CHF 2.01 billion from the prior \t\treading of CHF 1.29 billion while the April ZEW expectations survey fell \t\tback to 53.4 from 53.8.\u00a0 Dealers continue to cite talk that Swiss \t\tNational Bank may be intervening by bidding the euro\/ franc cross \t\thigher.\u00a0 U.S. dollar offers are cited around the CHF 1.0920 level.\u00a0 The euro moved higher<\/strong> vis-\u00e0-vis the Swiss franc as the single \t\tcurrency tested offers around the CHF 1.4355 level while the British \t\tpound moved lower<\/strong> vis-\u00e0-vis the Swiss franc and tested bids around \t\tthe CHF 1.6490 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":"

Swiss National Bank Chairman Hildebrand said he is \u201cskeptical\u201d of the International Monetary Fund\u2019s G-20 bank tax proposal. Swiss National Bank and Swiss regulators announced new regulations 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-8795","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8795","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=8795"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8795\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}