Daily Market Outlook from ACFX 08/29/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 08/29/2013



Important Financial Indicators of the day

USD - 15:30 (GMT) - Prelim GDP q/q - Forecast 2.2% - Previous1.7%
USD - 15:30 (GMT) - Unemployment Claims - Forecast 330K - Previous336K


Currencies

◾EUR/USD The dollar remained higher against the euro following its biggest
gain in a week before U.S. data that may show the economy grew faster than
initially estimated, adding to the case for the Federal Reserve to slow stimulus.

◾The U.S. currency was little changed at $1.3325 per euro as of 2:06 p.m. in Tokyo
after strengthening 0.4 percent yesterday, the most since Aug. 21. The yen was little
changed at 97.66 per dollar and 130.14 per euro.

◾USD/INR The rupee slumped 3.9 percent to 68.8450 per dollar in Mumbai yesterday,
the biggest drop since 1993, according to prices from local banks
compiled by Bloomberg. In an effort to stem the currency’s decline by
reducing spot demand, the central bank said yesterday it will sell
dollars to the nation’s biggest state-run crude oil importers through a
swap facility.

◾India needs to immediately use its foreign exchange reserves to arrest the rupee’s record
plunge as the weakening currency has the potential to send the economy into a “nosedive,”
billionaire Adi India needs to immediately use its foreign exchange reserves to arrest
the rupee’s record plunge as the weakening currency has the potential to send
the economy into a “nosedive,” billionaire Adi Godrej said. rej said.

◾Godrej’s remarks come after Prime Minister Manmohan Singh’s government on Aug. 26
won approval from the lower house of parliament for a landmark bill that expands
the world’s biggest food program. The plan involves spending about 1.25 trillion rupees
($18 billion) in subsidies each year, potentially worsening a fiscal gap.

◾GBP/USD The pound strengthened from the lowest level in three weeks against the euro
as Bank of England Governor Mark Carney failed to convince investors that the central bank
will keep interest rates at an all-time low.

◾The pound strengthened 0.4 percent to 85.81 pence per euro at 4:24 p.m. London time,
after depreciating 0.4 percent to 86.52 pence, the weakest level since Aug. 7.
Sterling fell 0.1 percent to $1.5527 after dropping to $1.5429, the lowest since Aug. 14.

◾USD/CAD The Canadian currency weakened as speculation America and its allies will take
military action against Syria boosted the U.S. dollar’s appeal as a haven.

◾The loonie, nicknamed for the image of the aquatic bird on
the C$1 coin, depreciated as much as 0.4 percent, the most
compared with closing prices since Aug. 22, to C$1.0511 per U.S.
dollar before trading at C$1.0487 at 5 p.m. in Toronto, down 0.1
percent. One Canadian dollar buys 95.36 U.S. cents.



Commodities

◾Oil West Texas Intermediate oil fell
from the highest settlement in more than two years, dropping for
the first time in three days. U.S. crude stockpiles increased by
2.99 million barrels last week, a government report showed.

◾WTI for October delivery fell as much as 99 cents to $109.11 a barrel in electronic
trading on the New York Mercantile Exchange and was at $109.46 at 11:37 a.m. Singapore time.
The volume of all futures traded was about 20 percent below the 100-day average.
The contract climbed 1 percent to $110.10 yesterday, the highest close since May 3, 2011.

◾Brent for October settlement slid as much as 91 cents, or
0.8 percent, to $115.70 a barrel on the London-based ICE Futures
Europe exchange after closing yesterday at the highest since
Feb. 19. The European benchmark crude was at a premium of $6.35
to WTI futures, down from $6.51 yesterday.

◾Gold retreated from a three-month high spurred by tensions over Syria as
U.S. economic data may reinforce the case for the Federal Reserve to slow stimulus
and a technical indicator showed that prices were set to decline.

◾Bullion for immediate delivery lost as much as 0.7 percent to $1,407.95 an ounce
was at $1,409.08 at 12:25 p.m. in Singapore, dropping for the first time in six days.
Prices rallied to $1,433.83 yesterday, the highest level since May 14, on concern
that the U.S. and its allies will launch a military strike against Syria
in retaliation for its alleged use of chemical weapons.



Equities

◾Asian stocks Asia’s benchmark stock index rose from a two-month low as energy
shares increased after concern military action against Syria will disrupt global
oil supplies fueled gains in crude prices this week.

◾The MSCI Asia Pacific Index rose 0.7 percent to 130.04 as of 2:23 p.m. in Tokyo,
with eight of the 10 industry groups gaining on the gauge, which yesterday
fell to the lowest close since June 27. The measure lost 2.4 percent this month through yesterday,
wiping out all its 2013 increases. Investors also are awaiting a report on U.S. economic growth
that may give signs on when the Federal Reserve will start paring stimulus.

◾European stocks dropped to the lowest level in six weeks as concern grew that the U.S.
will take military action against Syria.

◾The Stoxx Europe 600 Index lost 0.4 percent to 297.89 at the close of trading,
its lowest level since July 17. The gauge fell as much as 1.1 percent in intraday trading.
It has still advanced 8.1 percent since this year’s low on June 24 as the European
Central Bank pledged to keep interest rates low.

◾U.S stocks rose, with the Standard & Poor’s 500 Index rebounding from an eight-week low,
as energy shares rallied and investors watched developments on Syria.

◾The S&P 500 rose 0.3 percent to 1,634.96 at 4 p.m. in New York. The index closed just
short of its average level for the past 100 days of 1,638.27, after slipping below it yesterday
for the first time since June. The Dow Jones Industrial Average advanced
48.38 points, or 0.3 percent, to 14,824.51