{"id":928,"date":"2009-03-11T17:05:05","date_gmt":"2009-03-11T22:05:05","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=928"},"modified":"2009-03-11T17:05:05","modified_gmt":"2009-03-11T22:05:05","slug":"fundamental-outlook-at-1400-gmt-est-0400-3","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/03\/11\/fundamental-outlook-at-1400-gmt-est-0400-3\/","title":{"rendered":"Fundamental Outlook at 1400 GMT (EST + 0400)"},"content":{"rendered":"

By GCI Fx Research<\/span><\/p>\n

\u20ac<\/strong><\/p>\n

The euro appreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.2815 level and was supported around the $1.2615 level.\u00a0 Yesterday\u2019s strong gains in U.S. equity markets coincided with a bid in the common currency and news that Citigroup\u2019s January and February were profitable.\u00a0 A report from U.S. Treasury Secretary Geithner that he plans to inject capital to help lenders reduce their exposures to distressed securities also impacted the market.\u00a0 Traders remain curious as to whether Citigroup and any other U.S. financial institutions will be nationalized by the Obama administration and whether or not the Fed\u2019s new asset purchase facilities ease credit strains.\u00a0 Federal Reserve Chairman Bernanke yesterday reiterated that major financial institutions will not be permitted to fail and said a sustainable economic recovery will \u201cremain out of reach\u201d until the banking sector is stabilized.\u201d\u00a0 He added 2010 will be a year of growth if the current measures being taken to support the economy result in the recession ending later this year.\u00a0 In eurozone news, German January factory orders were off 8% m\/m and 37.9% y\/y while the German January producer price index was off 1.2% m\/m and up 2.0% y\/y. Euro bids are cited around the US$ 1.2385 level.<\/p>\n

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

The yen appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested bids around the \u00a597.20 level and was capped around the \u00a598.85 level.\u00a0 Data released in Japan overnight saw January core machinery orders off 3.2% m\/m while the February domestic corporate goods price index was off 0.4% m\/m and 1.1% y\/y, the latest indication that deflationary pressures have not yet subsided.\u00a0 The yen was stronger across the board today as traders weighed the ongoing global economic problems against, yesterday\u2019s strong gains in U.S. equity markets, and Japan\u2019s slumping economy.\u00a0 Most traders expect Bank of Japan will expand its purchase of assets to keep market rates of interest restrained.\u00a0 The Nikkei 225 stock index climbed 4.55% to close at \u00a57,376.12.\u00a0 U.S. dollar offers are cited around the \u00a5104.15 level.\u00a0 The euro moved lower vis-\u00e0-vis the yen as the single currency tested bids around the \u00a5124.10 level and was capped around the \u00a5125.70 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested offers around the \u00a5133.90 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a583.90 level.\u00a0 The Chinese yuan appreciated vis-\u00e0-vis the U.S. dollar as the greenback closed at CNY 6.8399 in the over-the-counter market, down from CNY 6.8410.\u00a0 Data released in China today saw February urban property sales up 6.9% y\/y.<\/p>\n

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

The British pound appreciated vis-\u00e0-vis the U.S. dollar today as cable tested offers around the US$ 1.3840 level and was supported around the $1.3655 level.\u00a0 Bank of England purchased \u20a42 billion in gilts today as the first part of its quantitative easing strategy that was announced last week.\u00a0 BoE is likely to purchase up to \u20a475 billion in gilts and corporate debt over the next three months and this effectively means money is being printed.\u00a0 Prime Minister Brown will meet banking chief executives on 24 March ahead of the G20 summit it London on 2 April.\u00a0 Data released in the U.K. today saw the January trade deficit worsen to -\u20a47.7 billion from -\u20a47.2 billion in December.\u00a0 Cable bids are cited around the US$ 1.3470 level.\u00a0 The euro moved higher vis-\u00e0-vis the British pound as the single currency tested offers around the \u20a40.9300 figure and was supported around the \u20a40.9190 level.<\/p>\n

Daily Market Commentary provided by 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.<\/span><\/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.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By GCI Financial – The euro appreciated vis-\u00e0-vis the U.S. dollar today as the single currency tested offers around the US$ 1.2815 level…<\/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-928","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/928","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=928"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/928\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}