{"id":8853,"date":"2010-04-27T17:41:16","date_gmt":"2010-04-27T21:41:16","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8853"},"modified":"2010-04-27T17:41:16","modified_gmt":"2010-04-27T21:41:16","slug":"forex-daily-market-commentary-49","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/27\/forex-daily-market-commentary-49\/","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$ 1.3275 level and was capped around \t\tthe $1.3415 level. \u00a0The common currency reached its lowest level since \t\tMay 2009 as the Greece\u2019s debt was downgraded to junk status by Standard \t\t& Poor\u2019s \u2013 the first time a member of the eurozone lost its \t\tinvestment-grade status since the euro started trading in 1999.\u00a0 Greece \t\twas reduced to BB+ from BBB+ and S&P warned Greek bondholders may lose \t\tas much as 70% of their investments as Greece restructures its debt.\u00a0 \t\tS&P also reduced Portugal\u2019s ratings by two notches to A- from A+.\u00a0 \t\tEuropean Union leaders will likely convene in the coming days to \t\tdeliberate Greece\u2019s decision to activate a \u20ac45 billion emergency aid \t\tpackage.\u00a0 German Chancellor Merkel\u2019s government delayed a decision this \t\tweek on whether to release bailout funds for Greece.\u00a0 Merkel faces an \t\telection in the German state of North-Rhine Westphalia on 9 May and many \t\tGermany voters are said to oppose assistance for Greece without further \t\tfiscal cuts by Greece.\u00a0 The Greek downgrade renders it possible that the \t\tEuropean Central Bank may be unable to utilize Greek bonds as eligible \t\tcollateral in repo and other financing activities.\u00a0 There is chatter \t\tthat the ECB may be forced to resort to the so-called nuclear option \t\tthat could see monetary authorities purchase European government bonds.\u00a0 \t\tData released in Germany today saw the May GfK consumer confidence \t\tsurvey improve to 3.8 from a revised reading of 3.4.\u00a0 Also, the March \t\timport price index moved higher 1.7% m\/m and 5.0% y\/y.\u00a0 Data released in \t\tFrance today saw April consumer confidence print at -37, down from the \t\trevised prior reading of -34, and March total jobseekers fell by 6,600.\u00a0 \t\tIn U.S. news<\/strong>, the February S&P\/CaseShiller house price index was \t\tup 0.64% y\/y, up from a downwardly revised -0.73%, and was off 0.10% \t\tm\/m.\u00a0 Additionally, April consumer confidence improved to +57.9 from the \t\tprior reading of +52.3 and the April Richmond Fed manufacturing rallied \t\tto +30 from the prior reading of +6.\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>93.35 \t\tlevel and was capped around the \u00a594.05 level. \u00a0Traders moved into yen \t\tduring a flight to quality as global financial markets came off \t\tsignificantly on account of exacerbated credit problems in the \t\teurozone.\u00a0 There are indications that Japan\u2019s economy continues to \t\timprove and there is a sense that some Bank of Japan Policy Board \t\tofficials may be unwilling to expand the central bank\u2019s emergency loan \t\tprogram any further.\u00a0 Many dealers believe the central bank may upgrade \t\tits twice-yearly outlook for gross domestic product and prices when \t\tpolicymakers convene on Friday.\u00a0 Data released in Japan overnight saw \t\tthe April small business confidence index print at 46.8, up from the \t\tprior reading of 45.8.\u00a0 Data to be released tonight include March retail \t\ttrade.\u00a0 The Nikkei 225 stock index climbed 0.42% to close at \t\t\u00a511,212.66.\u00a0 U.S. dollar offers are cited around the \u00a596.85 level.\u00a0 The euro moved lower <\/strong>vis-\u00e0-vis the yen as the single currency tested \t\tbids around the \u00a5124.05 level and was capped around the \u00a5125.95 level.\u00a0 \t\tThe British pound moved lower <\/strong>vis-\u00e0-vis the yen as sterling \t\ttested bids around the \u00a5143.10 level while the Swiss franc moved \t\tlower <\/strong>vis-\u00e0-vis the yen and tested bids around the \u00a586.50 level. In Chinese news<\/strong>, the U.S. dollar depreciated vis-\u00e0-vis the Chinese \t\tyuan as the greenback closed at CNY 6.8257 in the over-the-counter \t\tmarket, down from CNY 6.8266. \u00a0Data to be released in China this week \t\tinclude April PMI manufacturing.\u00a0 People\u2019s Bank of China Governor Zhou \t\tthis weekend reiterated China will pursue a \u201cproactive fiscal policy and \t\ta relatively easy monetary policy.\u201d\u00a0 There were not many official \t\tcomments about China\u2019s foreign exchange rate policy this weekend at the \t\tG-7 and G-20 meetings.\u00a0 \u00a0\u00a0China is expected to widen its yuan trading \t\tband at any time.<\/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","protected":false},"excerpt":{"rendered":"

Greece was reduced to BB+ from BBB+ and S&P warned Greek bondholders may lose as much as 70% of their investments as Greece restructures its debt. S&P also reduced Portugal\u2019s ratings…<\/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-8853","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8853","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=8853"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8853\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}