Daily Market Outlook from ACFX 09/25/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 09/25/2013



Important Financial Indicators of the day

CAD - 12:30 (GMT) - Core Retail Sales m/m - Forecast 0.6% - Previous -0.8%
USD - 14:00 (GMT) - CB Consumer Confidence - Forecast 79.9 - Previous 81.5


Currencies

◾EUR/USD The dollar remained lower after a two-day slide versus the yen as the U.S. government moves closer
to a shutdown with lawmakers wrangling over the debt limit.

◾The dollar slipped 0.1 percent to 98.76 yen as of 12:07 p.m. in Tokyo, after falling 0.6 percent in the previous two days. It fetched $1.3495 per euro after rising 0.2 percent to $1.3493 yesterday, the biggest gain since Sept. 5.

◾AUD/NZD Australia’s dollar traded 0.6 percent from an almost five-year low versus its New Zealand counterpart on bets interest rates at the nations’ central banks will diverge.

◾The Australian dollar was little changed at NZ$1.1272 as of 9:46 a.m. in Sydney from yesterday, after touching NZ$1.12 on
Aug. 1, the weakest since October 2008. It traded at 94.22 U.S. cents, after gaining 0.4 percent yesterday to 94.31. New Zealand’s dollar slid 0.2 percent to 83.59 U.S. cents.

◾USD/CAD The Canadian dollar gained for the first time in three days before a report tomorrow forecast to
show retail sales rebounded in July from the worst monthly decline this year.

◾The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, gained 0.2 percent to C$1.0284 per U.S. dollar at 5 p.m. in Toronto. It reached C$1.0182 per U.S. dollar Sept. 19, the highest since June. One loonie buys 97.24 U.S. cents.



Commodities

◾Oil West Texas Intermediate crude traded near the lowest price in more than six weeks amid speculation a United Nations resolution this week will reduce the likelihood of a U.S.-led military strike against Syria. ◾WTI for November delivery was at $103.46 a barrel in electronic trading on the New York Mercantile Exchange, down 13 cents, at 12:15 p.m. Singapore time. The contract dropped $1.08 to $103.59 yesterday, capping a three-day losing streak. The volume of all futures traded was about 74 percent less than the 100-day average. Prices have gained 7.2 percent this quarter, the most in a year, and are up 13 percent so far in 2013.

◾Brent for November settlement slid 8 cents to $108.08 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $4.62 to WTI. The spread widened for a second day to $4.57 yesterday.

◾Gold snapped a two-day decline on speculation that demand may strengthen before China’s Golden Week holiday as lower prices lure buyers. Silver, platinum and palladium increased

◾Gold for immediate delivery rose as much as 0.4 percent to $1,328.63 an ounce and traded at $1,326.61 at 9:18 a.m. in Singapore. Bullion fell for a fourth week last week, the longest losing streak since April, even after the U.S. Federal Reserve
refrained from slowing its $85 billion-a-month of bond buying that helped the metal cap a 12-year bull run in 2012.



Equities

◾Asian stocks fell from a four-month high amid a political showdown in Washington over the U.S. budget and as investors examined speeches from Federal Reserve officials for clues on monetary policy.

◾The MSCI Asia Pacific Index fell 0.9 percent to 140.08 as of 11:44 a.m. in Hong Kong, with all 10 industry groups on the gauge declining. The measure climbed 8.5 percent in September through yesterday, on course for the best month since May 2009, after the Fed maintained the pace of its stimulus program and data showed China’s economic growth is stabilizing. The yen traded at 98.73 per dollar, strengthening from the most recent close in equity markets in Tokyo last week.

◾European stocks fell for a second day, the first back-to-back losses this month, as investors weighed the German election result and monetary-policy statements from Federal Reserve officials William C. Dudley and Dennis Lockhart.

◾The Stoxx Europe 600 Index retreated 0.5 percent to 312.62 at the close of trading. The gauge has still surged 9.7 percent this quarter, on course for the biggest gain in four years. The measure advanced for a third week last week, extending its rally this year to 12 percent, after the Fed unexpectedly refrained from reducing its monthly asset purchases

◾U.S stocks fell, with the Standard & Poor’s 500 Index having the longest retreat in a month, as financial shares slumped and investors watched speeches from Federal Reserve officials for clues on monetary policies.

◾The S&P 500 (SPX) retreated 0.5 percent to 1,701.84 at 4 p.m. in New York. The benchmark gauge has lost 1.4 percent over three days, giving back all its gains from the Fed’s unexpected move last week to maintain stimulus levels. The Dow Jones Industrial Average slipped 49.71 points, or 0.3 percent, to 15,401.38. About 5.8 billion shares changed hands on U.S. exchanges, in line with the three-month average.