{"id":9384,"date":"2010-05-12T18:22:47","date_gmt":"2010-05-12T22:22:47","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9384"},"modified":"2010-05-12T18:22:47","modified_gmt":"2010-05-12T22:22:47","slug":"forex-daily-market-commentary-60","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/12\/forex-daily-market-commentary-60\/","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 vis-\u00e0-vis the U.S. dollar today as the single currency tested bids around the US$ 1.2605 level and was capped around the $1.2740 level.\u00a0 Traders continue to express skepticism with the latest bailout plans for eurozone countries, doubting that Greece, Ireland, Italy, Spain, and Portugal will be able to dramatically reduced their bloated deficits and rein in fiscal spending.\u00a0 Sovereign debt concerns continue to weigh heavily over the common currency.\u00a0 European Central Bank President Trichet today \u201cruled out completely\u201d the idea that a member country of the eurozone could be expelled from membership. Trichet also defended the ECB\u2019s decision this week to purchase eurozone government bonds in the secondary market, reporting it is \u201cnot a situation of quantitative easing. We are takking back all the liquidity that we\u2019re providing.\u201d\u00a0 Concurrent with the eurozone jitters, it was announced that Estonia will join the euro on 1 January 2011.\u00a0 Data released in the eurozone today saw EMU-16 March industrial production climb 1.3% m\/m and 6.9% y\/y while EMU-16 GDP growth registered 0.2% q\/q and 0.5% y\/y.\u00a0 The ECB will release its May monthly report tomorrow.\u00a0 German data released today saw Q1 GDP growth of 0.2% q\/q and 1.7% y\/y.\u00a0 Also, French consumer prices were up 0.3% m\/m and 1.7% y\/y while Q1 gross domestic product was up 0.1% q\/q and 1.2% y\/y.\u00a0 In U.S. news, St. Louis Fed President Bullard said the economic recovery is \u201cfairly robust\u201d and said risks from Europe are \u201cnot that high.\u201d The Senate today voted to keep regulatory oversight of smaller banks with the Fed.\u00a0 Data released in the U.S. today saw MBA mortgage applications up 3.9% while the March trade balance printed at \u2013US$ 40.4 billion, wider than the revised \u2013US$ 39.4 billion.\u00a0 Euro bids are cited around the US$ 1.2585 level.<\/p>\n

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

The yen depreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested offers around the \u00a593.25 level and was supported around the \u00a592.45 level.\u00a0 Some risk appetite returned to the market after several days of intense volatility and traders reduced exposure to the yen.\u00a0 Data released in Japan overnight saw official reserve assets climb to US$ 1.046 trillion while the March leading and coincident indices rallied to 102.8 and 101.1, respectively.\u00a0 Many data will be released in Japan overnight.\u00a0 Bank of Japan Deputy Governor Yamaguchi this week said the central bank has \u201cno need to alter the outlook in our semi-annual economic report\u201d following recent market volatility.\u00a0 Finance minister Kan this week reported equity and currency markets will \u201cstart to stabilize.\u201d\u00a0 Minutes from last month\u2019s BoJ Policy Board meeting were released yesterday and policymakers observed \u201cbalance sheet adjustments in the banking sector and the fiscal deficit problem in some European countries might further slow the pace of economic recovery\u201d in the region.\u00a0 The Nikkei 225 stock index lost 0.16% to close at \u00a510,394.03.\u00a0 U.S. dollar offers are cited around the \u00a596.85 level.\u00a0 The euro moved higher vis-\u00e0-vis the yen as the single currency tested offers around the \u00a5118.40 level and was supported around the \u00a5116.55 level.\u00a0 The British pound moved higher vis-\u00e0-vis the yen as sterling tested offers around the \u00a5139.80 level while the Swiss franc moved higher vis-\u00e0-vis the yen and tested offers around the \u00a584.10 level. In Chinese news, the U.S. dollar depreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8272 in the over-the-counter market, down from CNY 6.8293.\u00a0 People\u2019s Bank of China adviser Xin Bin this week said the central bank\u2019s quarterly report released on Mondat is a signal the central bank will permit the yuan to appreciate vis-\u00e0-vis the U.S. dollar.\u00a0 The central bank yielded some clues regarding the possibility of ending its U.S. dollar peg, reporting it will manage the yuan \u201cwith reference to a basket of currencies\u201d \u2013 language that was absent from the central bank\u2019s previous quarterly summary.<\/p>\n

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

The British pound depreciated sharply vis-\u00e0-vis the U.S. dollar today as cable tested bids around the US$ 1.4815 level and was capped around the $1.5045 level.\u00a0 New Prime Minister Cameron formed a government with the Liberal Democrats and the new coalition government promised to reduce the U.K.\u2019s deficit.\u00a0 Bank of England Governor King applauded the new government\u2019s decision to reduce as much as \u00a36 billion in spending this year.\u00a0 BoE released its quarterly inflation report today in which predicted inflation will remain above its 2% target through the remainder of the year and about 1.4% in two years\u2019 time.\u00a0\u00a0 Nonetheless, there are no indications BoE is considering tightening policy at this time and the central bank added downside U.K. growth rates have \u201cincreased somewhat.\u201d\u00a0 BoE is expected to begin reversing its quantitative easing policies in 2011.\u00a0 Data released in the U.K. today saw the April claimant count tick lower to 4.7% from 4.8% while jobless claims were off 27,100.\u00a0 Average weekly earnings accelerated sharply to 4.0% and the ILO unemployment rate remained steady at 8.0%.\u00a0 April Nationwide consumer confidence will be released tonight.\u00a0 Cable bids are cited around the US$ 1.4335 level.\u00a0 The euro appreciated vis-\u00e0-vis the British pound as the single currency tested offers around the \u00a30.8545 level and was supported around the \u00a30.8445 level.<\/p>\n

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

The Swiss franc appreciated vis-\u00e0-vis the U.S. dollar today as the greenback tested bids around the CHF 1.1060 level and was capped around the CHF 1.1140 level.\u00a0 The Swiss government today called on UBS and Credit Suisse to reduce risk-taking activities.\u00a0 Data released in Switzerland today saw April producer and import prices up 0.6% m\/m and 0.8% y\/y.\u00a0 U.S. dollar offers are cited around the CHF 1.1270 level.\u00a0 The euro moved lower vis-\u00e0-vis the Swiss franc as the single currency tested bids around the CHF 1.4015 level while the British pound depreciated vis-\u00e0-vis the Swiss franc and tested bids around the CHF 1.6415 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":"

Traders continue to express skepticism with the latest bailout plans for eurozone countries, doubting that Greece, Ireland, Italy, Spain, and Portugal will be able to dramatically reduced their bloated deficits…<\/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-9384","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9384","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=9384"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9384\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}