1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Daily Market Commentary

Discussion in 'Forex Daily News & Outlook' started by gcitrading, Jun 15, 2009.

  1. gcitrading

    gcitrading Contributing Member

    Joined:
    Dec 16, 2008
    Messages:
    329
    Likes Received:
    0
    EURO
    The euro moved sharply lowervis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3755 level and was capped around the $1.4000 figure. A difficult day for U.S. equities didn’t help the common currency’s cause and traders also reacted to the Group of Eight finance ministers meeting in Italy over the weekend. Data released in the U.S. today saw the New York Fed’s Empire manufacturing index decline to -9.41 in June from -4.55 in May, evidencing weak new orders and shipments sub-indices. Other data released in the U.S. today saw April net long-term TICS flows decline to US$ 11.2 billion, suggesting the U.S. did not import enough capital that month to finance its massive trade deficit. The US$ 11.2 billion print was down from the revised March figure of US$ 55.4 billion and significantly below the estimate of US$ 60.0 billion. Total net TIC flows in April came in at –US$ 53.2 billion, a dramatic swing from the US$ 25.0 billion revised print from March. Other data released today saw the June NAHB housing market index print a weaker-than-expected 15. In eurozone news, data released today confirmed that the number of people working in the eurozone declined by 1.2% in the first quarter of 2009, the largest decline since at least 1995 and the third consecutive quarterly decline in which employment fell. G8 finance ministers convened this weekend in Italy to discuss how they’ll unwind their massive emergency spending stimuli and bank rescue fundings from the global economy. Treasury Secretary Geithner indicated the danger has not yet subsided from the global economy and is not advocating that spending be curtailed. German finance minister Steinbrueck said he “does not share the excitement” about the recent appreciation in the price of crude oil and the euro’s exchange rate. Euro bids are cited around the US$ 1.3435 level.

    JPN/CNY
    The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥97.80 level and was capped around the ¥98.55 level. Bank of Japan’s Policy Board convened overnight to deliberate policy and is expected to keep its main overnight call rate target unchanged at 0.10%. The yen was up significantly across the board as risk aversion returned to the markets, directing U.S. equities prices lower out of the box. BoJ’s interest rate decision is expected overnight and BoJ’s monthly report will be released on Wednesday. The Nikkei 225 stock index lost 0.95% to close at ¥10,039.67. U.S. dollar offers are cited around the ¥104.15 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥134.90 level and was capped around the ¥137.80 level. The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥159.35 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the ¥89.45 level. In Chinese news, the U.S. dollar rallied vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8353 in the over-the-counter market, up from CNY 6.8323.

    STERLING
    The British pound moved lower vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.6240 level and was capped around the $1.6440 level. Traders continue to monitor the tense political situation involving Prime Minister Brown and the expenses scandal. Cable bids are cited around the US$ 1.6215 level. The euro vis-à-vis the British pound as the single currency tested bids around the ₤0.8445 level and was capped around the ₤0.8530 level.

    SWISS
    The Swiss franc came off vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.0950 level and was supported around the CHF 1.0780 level. Data released in Switzerland today saw May producer price inflation decline 0.3% m/m. U.S. dollar offers are cited around the CHF 1.1165 level. The euro moved lower vis-à-vis the Swiss franc as the single currency tested bids around the CHF 1.5055 level while the British pound gained ground vis-à-vis the Swiss franc and tested offers around the CHF 1.0950 level.
     
Loading...

Share This Page