Daily Market Outlook from ACFX 08/16/2013

[Atlas CapitalFx]

Daily Market Outlook 08/16/2013

Important Financial Indicators of the day


CAD - 15:30 (GMT) - Manufacturing Sales m/m - Forecast 0.5% - Previous 0.7%
USD - 15:30 (GMT) - Building Permits - Forecast 0.95M - Previous 0.92M
USD - 16:55 (GMT) - Prelim UoM Consumer Sentiment - Forecast 85.6 - Previous 85.1


Currencies

◾EUR/USD The dollar headed for its biggest weekly advance in a month against the yen before U.S. reports that economists said will show housing starts and consumer confidence improved.

◾The dollar was little changed at 97.35 yen at 8:36 a.m. in
London, having risen 1.2 percent this week, the most since the
period ended July 19. The U.S. currency was also little changed
at $1.3348 per euro. The yen traded at 129.92 per euro from
129.97 yesterday.

◾GBP/USD The pound headed for a second
weekly gain versus the dollar and the euro after data added
to signs the U.K. economy is strengthening.

◾The pound slid 0.1 percent to $1.5626 at 7:39 a.m. London
time after appreciating to $1.5652 yesterday, the highest since
June 19. It has gained 0.8 percent this week. The U.K. currency
was little changed at 85.35 pence per euro after reaching 85.05
pence yesterday, the strongest since July 3. It has appreciated
0.8 percent since Aug. 9.

◾USD/CAD Canada’s dollar gained the most this week as speculation the Federal Reserve will begin slowing stimulus as soon as September weighed on demand for assets denominated in the U.S. currency.

◾The loonie, as Canada’s currency is nicknamed for the image
of the aquatic bird on the C$1 coin, appreciated 0.4 percent,
the most on a closing basis since Aug. 9, to C$1.0306 per U.S.
dollar at 5 p.m. in Toronto. It declined earlier to C$1.0364
after touching C$1.0370 yesterday, the weakest since Aug. 8. One
loonie buys 97.03 U.S. cents



Commodities

◾Oil West Texas Intermediate crude traded
near the highest price in two weeks as an escalating conflict in
Egypt fanned concern that oil shipments through the country may
be disrupted.

◾WTI for September delivery was at $107.39 a barrel in electronic trading on the New York Mercantile Exchange, up 6 cents at 3 p.m. Singapore time. The volume of all futures traded was 26 percent below the 100-day average. The contract ended yesterday’s session at $107.33, the highest close since Aug. 1. Prices have advanced 1.3 percent this week.

◾Brent for October settlement increased 3 cents to $109.63 a
barrel on the London-based ICE Futures Europe exchange. The
September contract expired yesterday after climbing 91 cents to
$111.11, the highest since March 7. The front-month European
benchmark crude was at a premium of $2.54 to WTI futures. The
spread widened for a fourth day yesterday to $3.78.

◾Gold traded near a two-month high,
set for the best week in five, on signs of increased physical
demand and as sales from exchange-traded products slowed. Silver
was set for the best week since October 2011.

◾Spot gold rose as much as 0.5 percent to $1,372.97 an ounce,
the highest since June 19, and traded at $1,364.55 at 2:05 p.m.
in Singapore. Silver was little changed at $23.01 an ounce after
yesterday rising more than 20 percent from a 34-month low on
June 27 to meet the common definition of a bull market.



Equities

◾Asian stocks fell as investors shied away from riskier assets after an unexpected drop in U.S. jobless claims fueled speculation the Federal Reserve will cut stimulus next month. Chinese shares reversed the biggest intraday surge since March 2009.

◾The MSCI Asia Pacific Index slid 0.5 percent to 134.23 as of 2:20 p.m. in Hong Kong, with all 10 industry groups on the gauge retreating. More than two shares dropped for each that rose. The measure is on course for a 0.2 percent gain this week.

◾European stocks were little changed,
after the Stoxx Europe 600 Index dropped the most in more than
five weeks yesterday, as investors awaited reports on the U.S.
housing market. U.S. futures rose, while Asian shares fell.

◾The Stoxx 600 slipped 0.2 percent to 304.85 at 8:38 a.m. in London, extending its decline this week to 0.3 percent. Standard & Poor’s 500 Index futures added 0.3 percent, while the MSCI Asia Pacific Index retreated 0.2 percent.

◾U.S stocks fell the most since June as forecasts from Cisco Systems Inc. and Wal-Mart Stores Inc. disappointed while improving economic data pushed bond yields higher amid concern the Federal Reserve will reduce stimulus. ◾The Standard & Poor’s 500 Index slipped 1.4 percent, the most since June 20, to 1,661.32 at 4 p.m. in New York. The Dow Jones Industrial Average dropped 225.47 points, or 1.5 percent, to 15,112.19, the lowest level since July 3. About 6.6 billion shares exchanged hands on U.S. exchanges today, 4.5 percent above the three-month average. Treasury yields rose to the highest levels in two years.