{"id":8924,"date":"2010-04-29T18:01:47","date_gmt":"2010-04-29T22:01:47","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8924"},"modified":"2010-04-29T18:01:47","modified_gmt":"2010-04-29T22:01:47","slug":"forex-daily-market-commentary-51","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/29\/forex-daily-market-commentary-51\/","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$ 1.3280 level and was \t\t\tsupported around the $1.3185 level. Traders continue to lift the \t\t\tcommon currency higher on the premise that much-needed financial aid \t\t\twill be released to Greece sooner rather than later.\u00a0 European \t\t\tCentral Bank President Trichet today urged German legislators to \t\t\tapprove Greece\u2019s request for funds under a joint financial rescue \t\t\tpackage being offered by the European Union and International \t\t\tMonetary Fund.\u00a0 Trichet noted a \u201cstrong sense of direction\u201d is \t\t\trequired so that contagion can be avoided.\u00a0 A timetable for \t\t\tdisbursement of funds to Greece could be released as early as next \t\t\tweek.\u00a0 A European Union official said a final plan on the initial \t\t\t\u20ac45 billion bailout plan could be reached \u201cin days\u201d while German \t\t\tfinance minister Schaeuble said it is not yet certain that an \t\t\tagreement would be reached and called on Greece to implement a \t\t\tbudget consolidation.\u00a0 Traders are also monitoring the situation in \t\t\tSpain and Portugal, two eurozone countries that had their credit \t\t\tratings downgraded and may require their own financial assistance \t\t\tpackages.\u00a0 Data released in the eurozone today saw the EMU-16 March \t\t\tmoney supply off 0.1% y\/y while the April business climate indicator \t\t\timproved to +0.23 from the revised prior print of -0.20.\u00a0 \t\t\tAdditionally, EMU-16 industrial confidence, economic confidence, and \t\t\tservices confidence all improved this month.\u00a0 The EMU-16 March \t\t\tunemployment rate and April consumer price inflation data will be \t\t\treleased tomorrow.\u00a0 Additionally, Germany\u2019s unemployment roll fell \t\t\tby 68,000 in April with the unemployment rate reaching 7.8% from the \t\t\tprior reading of 8.0%.\u00a0 In U.S. news<\/strong>, the Chicago Fed\u2019s \t\t\tNational Activity Index improved to -0.07 from the revised prior \t\t\treading of -0.44.\u00a0 Also, weekly initial jobless claims fell to \t\t\t+448,000 from the revised prior reading of +459,000 and continuing \t\t\tjobless claims fell to 4.645 million.\u00a0 Q1 GDP data will be released \t\t\ttomorrow along with University of Michigan consumer sentiment data.\u00a0 \t\t\tPresident Obama nominated Janet Yellen to become the new Fed Vice \t\t\tChairman and also nomated Peter Diamond and Sarah Bloom Raskin to \t\t\tbecome Fed Governors.\u00a0 The Fed yesterday voted to keep monetary \t\t\tpolicy unchanged.\u00a0 Euro bids are cited around the US$ 1.3175 level.<\/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>94.15 \t\t\tlevel and was supported around the \u00a593.85 level. \u00a0Nikkei<\/span> reported Bank of Japan will forecast consumer price inflation of \t\t\t+0.2% in fiscal year 2011, following three years of declines.\u00a0 BoJ\u2019s \t\t\tPolicy Board will release its interest rate decision overnight and \t\t\tis not expected to change monetary policy at this time, though it \t\t\tmay upgrade its forecasts for economic and inflation growth.\u00a0 It was \t\t\talso announced that the balance of commercial paper held by the \t\t\tcentral bank is expected to reach zero for the first time in nearly \t\t\tnineteen months after having once reached \u00a54 trillion.\u00a0 Japanese \t\t\tfinancial markets were closed overnight for the Golden Week \t\t\tholidays.\u00a0 Many data will be released overnight including April PMI \t\t\tmanufacturing, March household spending, March jobless data, \t\t\tconsumer price inflation, and March industrial production.\u00a0 The \t\t\tNikkei 225 stock index lost 2.57% yesterday to close at \u00a510,924.79.\u00a0 \t\t\tU.S. dollar offers are cited around the \u00a596.85 level.\u00a0 The euro \t\t\tmoved higher <\/strong>vis-\u00e0-vis the yen as the single currency tested \t\t\toffers around the \u00a5124.85 level and was supported around the \u00a5123.75 \t\t\tlevel.\u00a0 The British pound moved higher <\/strong>vis-\u00e0-vis the yen as \t\t\tsterling tested offers around the \u00a5143.80 level while the Swiss \t\t\tfranc moved higher <\/strong>vis-\u00e0-vis the yen and tested offers around \t\t\tthe \u00a587.00 figure. In Chinese news<\/strong>, the U.S. dollar \t\t\tappreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at \t\t\tCNY 6.8260 in the over-the-counter market, up from CNY 6.8254. \t\t\t\u00a0China reduced its quota for short-term overseas borrowing this year \t\t\tto US$ 32.4 billion, 1.5% less than last year\u2019s pace on account of \t\t\tyuan appreciation.\u00a0 People\u2019s Bank of China is expected to revalue \t\t\tits yuan currency at any time.<\/span><\/p>\n

\u00a3<\/span><\/strong><\/p>\n

The British pound \t\t\tappreciated vis-\u00e0-vis the U.S. dollar today<\/span><\/strong> as cable tested offers around the US$ 1.5285 level and was supported \t\t\taround the $1.5140 level.\u00a0 Cable shook off market chatter that the \t\t\tratings agencies may downgrade the U.K. on account of its worsening \t\t\tfinancial position.\u00a0 Data released in the U.K. overnight saw April \t\t\tNationwide housing prices up 1% m\/m and 10.5% y\/y.\u00a0 The April GfK \t\t\tconsumer confidence survey will be released tonight.\u00a0 Prime Minister \t\t\tBrown, the Tories\u2019 Cameron, and the Liberal Democrat\u2019s Clegg held \t\t\ttheir last debate today and it appears increasingly likely Labour \t\t\twill lose its grip on power.\u00a0 Cable bids are cited around the US$ \t\t\t1.5030 level.\u00a0 The euro depreciated <\/strong><\/span> vis-\u00e0-vis the British pound as the single currency tested bids \t\t\taround the \u00a30.8670 level and was capped around the \u00a30.8730 level.<\/span><\/p>\n

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

The Swiss franc \t\t\tappreciated <\/span><\/strong>vis-\u00e0-vis the U.S. dollar \t\t\ttoday as the greenback tested bids around the CHF 1.0805 level and \t\t\twas capped around the CHF 1.0870 level.\u00a0 The April KOF Swiss leading \t\t\tindicator for April will be released tomorrow. U.S. dollar offers \t\t\tare cited around the CHF 1.0930 level.\u00a0 The euro moved higher<\/strong> vis-\u00e0-vis the Swiss franc as the single currency tested offers \t\t\taround the CHF 1.4350 level while the British pound appreciated<\/strong> vis-\u00e0-vis the Swiss franc and tested offers around the CHF 1.6540 \t\t\tlevel.<\/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":"

BoJ\u2019s Policy Board will release its interest rate decision overnight and is not expected to change monetary policy at this time, though it may upgrade its forecasts for economic and inflation growth…<\/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-8924","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8924","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=8924"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8924\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}