{"id":9403,"date":"2010-05-13T18:53:37","date_gmt":"2010-05-13T22:53:37","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9403"},"modified":"2010-05-13T18:53:37","modified_gmt":"2010-05-13T22:53:37","slug":"forex-daily-market-commentary-61","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/13\/forex-daily-market-commentary-61\/","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$ 1.2560 level and was capped around the $1.2685 level.\u00a0 The common currency is close to testing multi-month lows that could see the pair test March 2009 lows.\u00a0 Deepening eurozone credit concerns are impacting the common currency negatively, as are output concerns that suggest U.S. economic growth will continue to outpace EMU-16 economic growth.\u00a0 European Central Bank President Trichet today defended the ECB\u2019s decision this week to buy eurozone debt in the secondary market and said the ECB will sterilize its purchases through time deposits.\u00a0 ECB member Quaden called on banks today to maintain more and stronger capital.\u00a0 Many traders believe the ECB will keep its main interest rate target unchanged until late next year.\u00a0 In U.S. news, data released today saw the April import price index climb 0.9% m\/m and 11.1% y\/y.\u00a0 Also, weekly initial jobless claims fell to 444,000 from 448,000 and continuing jobless claims rose to 4.627 million.\u00a0 Fed Vice Chairman Kohn and Minneapolis Fed President Kocherlakota defended the Fed\u2019s pledge to keep interest rates low for an \u201cextended period.\u201d\u00a0 Regional Fed Presidents including Dallas\u2019s Fisher, St. Louis\u2019s Bullard, and Philadelphia\u2019s Plosser have recently suggested the pledge may inhibit the Fed\u2019s ability to manage medium-term inflation expectations.\u00a0 Fed Chairman Bernanke said a Senate proposal to divest swaps trading desks from commercial banks would result in less financial stability.\u00a0 Euro bids are cited around the US$ 1.2585 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 \u00a592.60 level and was capped around the \u00a593.65 level.\u00a0 Traders jumped back into yen today on renewed sovereign credit concerns.\u00a0 Many data were released in Japan overnight. First, the March current account total printed at \u00a52.534 trillion.\u00a0 Second, the March trade balance printed at \u00a51.074 trillion.\u00a0 Third, April bank lending was off 1.8% y\/y.\u00a0 April bankruptcies data will be released overnight along with April machine tool orders data and the economy watchers\u2019 survey.\u00a0\u00a0\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 climbed 2.18% to close at \u00a510,620.55.\u00a0 U.S. dollar offers are cited around the \u00a596.85 level.\u00a0 The euro moved lower vis-\u00e0-vis the yen as the single currency tested bids around the \u00a5116.60 level and was capped around the \u00a5118.70 level.\u00a0 The British pound moved lower vis-\u00e0-vis the yen as sterling tested bids around the \u00a5136.75 level while the Swiss franc moved lower vis-\u00e0-vis the yen and tested bids around the \u00a583.15 level. In Chinese news, the U.S. dollar appreciated vis-\u00e0-vis the Chinese yuan as the greenback closed at CNY 6.8280 in the over-the-counter market, up from CNY 6.8272.\u00a0 People\u2019s Bank of China member Li Daokui reported \u201cconditions for China\u2019s interest rate adjustment are basically mature now.\u201d\u00a0 Yuan forwards rose today on the premise that bilateral U.S.-Chinese talks could lead to yuan appreciation.\u00a0 People\u2019s Bank of China adviser Xin Bin this week said the central bank\u2019s quarterly report released on Monday 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


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

The British pound depreciated vis-\u00e0-vis the U.S. dollar today as cable tested bids around the US$ 1.4735 level and was capped around the $1.4915 level.\u00a0 Traders expressed fresh doubts that the new coalition government would be able to adequately reduce the U.K.\u2019s mammoth fiscal deficit.\u00a0 The new government has suddenly found an ally in Bank of England Governor King who has publicly supported their decision to reduce spending by as much as \u00a36 billion.\u00a0 The central bank is likely to gain additional oversight powers and the inclusion of the Liberal Democrats in the new government may have saved the Financial Services Authority.\u00a0 Data released in the U.K. todays aw the total trade balance worsen sharply, printing at -\u00a33.683 billion.\u00a0 Cable bids are cited around the US$ 1.4335 level.\u00a0 The euro appreciated vis-\u00e0-vis the British pound as the single currency tested offers around the \u00a30.8540 level and was supported around the \u00a30.8495 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 expressed fresh doubts that the new coalition government would be able to adequately reduce the U.K.\u2019s mammoth fiscal deficit. The new government has suddenly found an ally in Bank of England…<\/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-9403","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9403","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=9403"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9403\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}