{"id":8894,"date":"2010-04-28T19:06:12","date_gmt":"2010-04-28T23:06:12","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8894"},"modified":"2010-04-28T19:06:12","modified_gmt":"2010-04-28T23:06:12","slug":"forex-daily-market-commentary-50","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/28\/forex-daily-market-commentary-50\/","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 \t\t\tvis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as the \t\t\tsingle currency tested offers around the US$ 1.3245 level and was \t\t\tsupported around the $1.3140 level. \u00a0\u00a0As expected, the Federal Open \t\t\tMarket Committee decided to keep interest rates unchanged.\u00a0 The FOMC \t\t\treported \u201cInformation received since the Federal Open Market \t\t\tCommittee met in March suggests that economic activity has continued \t\t\tto strengthen and that the labor market is beginning to improve. \t\t\tGrowth in household spending has picked up recently but remains \t\t\tconstrained by high unemployment, modest income growth, lower \t\t\thousing wealth, and tight credit. Business spending on equipment and \t\t\tsoftware has risen significantly; however, investment in \t\t\tnonresidential structures is declining and employers remain \t\t\treluctant to add to payrolls. Housing starts have edged up but \t\t\tremain at a depressed level. While bank lending continues to \t\t\tcontract, financial market conditions remain supportive of economic \t\t\tgrowth. Although the pace of economic recovery is likely to be \t\t\tmoderate for a time, the Committee anticipates a gradual return to \t\t\thigher levels of resource utilization in a context of price \t\t\tstability. \u00a0With substantial resource slack continuing to restrain \t\t\tcost pressures and longer-term inflation expectations stable, \t\t\tinflation is likely to be subdued for some time. \u00a0The Committee will \t\t\tmaintain the target range for the federal funds rate at 0 to 1\/4 \t\t\tpercent and continues to anticipate that economic conditions, \t\t\tincluding low rates of resource utilization, subdued inflation \t\t\ttrends, and stable inflation expectations, are likely to warrant \t\t\texceptionally low levels of the federal funds rate for an extended \t\t\tperiod. The Committee will continue to monitor the economic outlook \t\t\tand financial developments and will employ its policy tools as \t\t\tnecessary to promote economic recovery and price stability. \u00a0In \t\t\tlight of improved functioning of financial markets, the Federal \t\t\tReserve has closed all but one of the special liquidity facilities \t\t\tthat it created to support markets during the crisis. The only \t\t\tremaining such program, the Term Asset-Backed Securities Loan \t\t\tFacility, is scheduled to close on June 30 for loans backed by \t\t\tnew-issue commercial mortgage-backed securities; it closed on March \t\t\t31 for loans backed by all other types of collateral.\u201d\u00a0 Kansas City \t\t\tFed President Hoenig dissented with the majority and he argued that \t\t\t\u201ccontinuing to express the expectation of exceptionally low levels \t\t\tof the federal funds rate for an extended period was no longer \t\t\twarranted because it could lead to a build-up of future imbalances \t\t\tand increase risks to longer run macroeconomic and financial \t\t\tstability, while limiting the Committee\u2019s flexibility to begin \t\t\traising rates modestly.\u201d\u00a0 President Obama will announce new Fed \t\t\tBoard nominees tomorrow.\u00a0 Data released in the U.S. today saw MBA \t\t\tmortgage applications decline 2.9% from the prior reading of \t\t\t+13.6%.\u00a0 In eurozone news<\/strong>, data released today saw the EMU-16 \t\t\tApril business climate indicator improve to -0.12 while EMU-16 April \t\t\tindustrial confidence improved to -18 with consumer confidence \t\t\tremaining unchanged, economic confidence improved, and services \t\t\tconfidence improved.\u00a0 German data saw April harmonized consumer \t\t\tprice inflation decline 0.1% m\/m and increase 1.0% y\/y.\u00a0 All eyes \t\t\tremain on Greece, Portugal, and Spain.\u00a0 It is being reported that \t\t\tGreece may require \u20ac120 billion in financial assistance over the \t\t\tnext three years.\u00a0 Spain\u2019s credit rating was downgraded today and \t\t\tworsening sovereign credit conditions may exacerbate conditions in \t\t\tthe eurozone.\u00a0 Euro bids are cited around the US$ 1.3175 level.<\/span><\/p>\n

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

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

The yen depreciated vis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as the greenback tested offers around the \u00a5<\/a>94.05 \t\t\tlevel and was supported around the \u00a593.00 figure. \u00a0Bank of Japan\u2019s \t\t\tPolicy Board is expected to keep its monetary policy unchanged and \t\t\tits main unsecured overnight call rate unchanged at 0.1% on Friday.\u00a0 \t\t\tThe central bank is also expected to upgrade its assessment of \t\t\tcurrent economic conditions and raise its consumer price inflation \t\t\tforecasts.\u00a0 The government will continue to pressure the central \t\t\tbank to maintain an ultra-easy monetary policy and possibly adopt an \t\t\tinflation target of 2%.\u00a0 Data released in Japan overnight saw March \t\t\tretail trade climb 0.8% m\/m and 4.7% y\/y.\u00a0 Also, March large \t\t\tretailers\u2019 sales were off 5.0%.\u00a0 The Nikkei 225 stock index lost \t\t\t2.57% to close at \u00a510,924.79.\u00a0 U.S. dollar offers are cited around \t\t\tthe \u00a596.85 level.\u00a0 The euro moved higher <\/strong>vis-\u00e0-vis the yen as \t\t\tthe single currency tested offers around the \u00a5124.55 level and was \t\t\tsupported around the \u00a5122.35 level.\u00a0 The British pound moved \t\t\thigher <\/strong>vis-\u00e0-vis the yen as sterling tested offers around the \t\t\t\u00a5141.70 level while the Swiss franc moved higher <\/strong>vis-\u00e0-vis \t\t\tthe yen and tested offers around the \u00a586.85 level. In Chinese \t\t\tnews<\/strong>, the U.S. dollar depreciated vis-\u00e0-vis the Chinese yuan as \t\t\tthe greenback closed at CNY 6.8254 in the over-the-counter market, \t\t\tdown from CNY 6.8257. \u00a0People\u2019s Bank of China pledged to keep \t\t\tflexible policies to react to \u201cnew conditions.\u201d\u00a0 PBoC added \u201cThe \t\t\tworld economy may stage a recovery in 2010, yet the foundation is \t\t\tstill fragile and complicated by the growth rates of various \t\t\teconomies and shifts in the macroeconomic policies.\u201d<\/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":"

By GCI Forex Research Fundamental Outlook at 1400 GMT (EDT + 0400) \u20ac The euro appreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3245 level and was supported around the $1.3140 level. \u00a0\u00a0As expected, the Federal Open Market Committee decided to keep interest rates unchanged.\u00a0 The FOMC reported … <\/p>\n

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