Daily Market Outlook from ACFX 21/1/2013

[Atlas CapitalFx]

Daily Market Outlook

Posted by on January 21, 2013

Important Financial Indicators of the day Forecast Previous
EUR 09:00 (GMT) EuroGroup Meeting text text

Currencies

AUD/JPY The Australian dollar declined
versus the yen before an inflation report this week that may
prompt further interest-rate cuts, damping demand for the
nation’s assets.
Australia’s dollar declined 0.4 percent to 94.28 yen as of
1:21 p.m. in Sydney, and traded little changed at $1.0516 after
touching $1.0486 on Jan. 18, the least since Jan. 8. New
Zealand’s currency, known as the kiwi, weakened 0.8 percent to
74.84 yen. It declined 0.2 percent to 83.47 cents, after
touching 83.34, the lowest since Jan. 7.

USD/JPY The yen rallied from its weakest
level in 2 1/2 years as Asian stock declines spurred demand for
safety and a decrease in bearish bets supported the currency.
The yen rose 0.4 percent to 89.75 per dollar as of 11:52 a.m. in Tokyo after earlier touching 90.25, the weakest since June 2010. Japan’s currency gained 0.3 percent to 119.59 per euro, after sliding 0.8 percent last week. The dollar was little changed at $1.3324 per euro from its close on Jan. 18, when it advanced 0.4 percent.

GBP/USD The pound had its steepest weekly
drop against the dollar since June on concern the U.K. economy
is struggling to expand and as growing investor confidence in
the euro-area damps demand for the currency as a haven.

The pound fell 1.7 percent to $1.5861 in the week to 5:46
p.m. London time yesterday, after sliding to $1.5854, the lowest
level since Nov. 16. The U.K. currency lost 1.5 percent to 83.83
pence per euro after depreciating to 83.95 pence, the weakest
since March 28.

USD/CAD The Canadian dollar fell the most in a month against its U.S. counterpart as selling pressure emerged after signs of economic growth from the U.S. and China failed to drive the currency above a key technical level.
The loonie fell 0.7 percent to 99.17 cents per U.S. dollar
this week in Toronto, the largest decline since the five days
ended Dec. 21. One loonie buys $1.0084.

Commodities

Oil dropped from the highest price
in four months in New York before U.S. lawmakers vote on budget
measures and European finance ministers meet to discuss the debt
crisis that threatens the region’s economy.
WTI for February delivery, which expires tomorrow, slid as
much as 36 cents to $95.20 a barrel in electronic trading on the
New York Mercantile Exchange and was at $95.23 at 1:23 p.m.
Sydney time. The more-active March future declined 27 cents to
$95.77. The front-month future increased 7 cents to $95.56 on
Jan. 18, the highest close since Sept. 17.
Brent for March settlement fell 25 cents to $111.64 a barrel on the London-based ICE Futures Europe exchange. The average volume of all contracts traded was 84 percent above the 100-day average. The European benchmark contract was at a premium of $15.89 to WTI futures for the same month. The gap was $15.16 on Jan. 17, the narrowest since July 24

Gold advanced on expectations for
more stimulus while U.S. lawmakers wrangle over the country’s
debt limit. Silver traded near the highest level in a month and
was set for the longest rally in a year
Gold rallied for a 12th year in 2012 on global stimulus
measures. The Bank of Japan starts a two-day policy meeting
today, while European finance ministers meet in Brussels for the
first time this year. In the U.S., House Republicans will use a
planned Jan. 23 vote on a three-month debt-ceiling increase to
try to force Senate Democrats to adopt a budget to spell out
their spending plan.

Equities

Asian stocks fell amid
speculation shares may have risen too far, too fast. Japanese
shares led the retreat as the yen climbed against the dollar
after hitting its lowest level in 2 1/2 years.

The MSCI Asia Pacific Index slid 0.1 percent to 132.62 as
of 11:35 a.m. in Tokyo, with about four stocks falling for every
three that rose. The gauge rallied 11 percent from Nov. 14
through Jan. 18 as Japanese shares jumped on optimism Prime
Minister Shinzo Abe will pursue more aggressive stimulus
policies to boost the economy.

European stocks were little changed
this week as better-than-expected economic data from China and
the U.S. offset concern that debt-ceiling talks will weigh on
recovering growth in the world’s biggest economy.

The Stoxx 600 Europe Index fell less than 0.1 percent to 287.03 this week. The measure climbed to its highest level since February 2011 last week amid speculation that U.S. companies’ earnings would exceed analysts’ estimates.

U.S stocks rose for a third week,
driving benchmark indexes to five-year highs, as earnings from
companies including General Electric Co. and Goldman Sachs Group
Inc. beat estimates and debt-limit talks progressed.

The S&P 500 (SPX) rose 1 percent to 1,485.98, extending its 2013 advance to 4.2 percent. The Dow Jones Industrial Average added 161.27 points, or 1.2 percent, to 13,649.70. Both measures closed at their highest levels since December 2007.