Daily Market Outlook from ACFX 25/1/2013

[Atlas CapitalFx]

Daily Market Outlook

Posted by on January 25, 2013

Important Financial Indicators of the day Forecast Previous
EUR 11:00 (GMT) German Ifo Business Climate 103.1 102.4
GBP 11:30 (GMT) Prelim GDP q/q -0.1% 0.9%
CAD 15:30 (GMT) Core CPI m/m -0.2% 0.0%
USD 17:00 (GMT) New Home Sales 387K 377K

Currencies

EUR/USD The Australian dollar rose versus the yen for a second day on speculation pressure will increase on the Bank of Japan (8301) to expand stimulus after core consumer prices in the nation declined last month.
Australia’s dollar rose 0.2 percent to 94.54 yen as of 1:45
p.m. in Sydney. It fell as low as $1.0439, the weakest since
Jan. 4, before trading little changed at $1.0452.

USD/JPY The yen headed for a record stretch
of weekly losses against the dollar as data showing a decline in
Japanese consumer prices added to the case for further monetary
stimulus from the central bank.
The Japanese currency slid 0.1 percent to 90.45 per dollar
at 1:17 p.m. in Tokyo from yesterday, after earlier touching
90.69, the weakest since June 21, 2010. It was set for an 11th
weekly loss, the longest losing streak in data compiled by
Bloomberg going back to 1971.

GBP/USD The pound fell to the weakest level in 11 months versus the euro before data tomorrow that economists said will show U.K. gross domestic product shrank last quarter.
The pound depreciated 0.8 percent to 84.76 pence per euro
at 4:35 p.m. London time after sliding to 84.81 pence, the
weakest since Feb. 28. Sterling fell 0.4 percent to $1.5780
after declining to $1.5757, the lowest since Aug. 28.

Commodities

Oil headed for a seventh weekly
advance in New York, the longest run of gains in almost four
years, amid signs of global economic growth and a drop in crude
stockpiles at Cushing, the U.S. storage hub.
Crude for March delivery was at $95.88 a barrel, down 7
cents, in electronic trading on the New York Mercantile Exchange
at 1:11 p.m. Sydney time. Futures rose 0.8 percent to $95.95
yesterday, the most since Jan. 17, and are up 0.4 percent this
week. A seventh weekly gain would be the longest run since April
2009. The average volume of all futures traded today was 61
percent below the 100-day average.
Brent for March settlement fell 17 cents to $113.11 a
barrel on the London-based ICE Futures Europe exchange. The
European benchmark contract was at a premium of $17.27 to WTI
futures, down from $17.33 yesterday. The gap was $15.16 on Jan.
17, the narrowest in almost six months.

Gold was poised for a weekly decline after reports from the U.S. to China signaled improving global growth, curbing demand for the metal as a haven asset. Platinum was on course for the best run of weekly gains in almost a year.
Gold for immediate delivery fell as much as 0.3 percent to $1,663.85 an ounce, the cheapest since Jan. 14, and was at $1,667.85 at 12:51 p.m. in Singapore. Prices are 1 percent lower this week, the most since the period to Dec. 21. Bullion for February delivery dropped as much as 0.4 percent to $1,662.60 an ounce, also the lowest since Jan. 14, on the Comex in New York

Equities

Asian stocks rose as declines
in Japanese consumer prices added to the case for more monetary
stimulus, boosting the Topix Index toward its longest weekly
winning streak in 40 years. Shares also gained after U.S.
jobless claims fell to a five-year low.

The MSCI Asia Pacific Index (MXAP) rose less than 0.1 percent to 131.49 as of 12:50 p.m. in Tokyo. About five stocks gained for every four that fell. The gauge is set for a 0.9 percent loss this week after a two-day retreat from the highest close in 17- months on Jan 22.

European stocks climbed to their
highest level since February 2011 as jobless claims in the U.S.
fell to a five-year low and the House of Representatives voted
to temporarily suspend the federal government’s borrowing limit.

The Stoxx Europe 600 Index (SXXP) gained 0.2 percent to 288.89 at the close of trading, after earlier sliding as much as 0.4 percent. The equity benchmark has climbed 3.3 percent this year after U.S. lawmakers agreed on a compromise budget.

U.S stocks rose, with the Standard & Poor’s 500 Index briefly topping 1,500, as an unexpected drop in jobless claims and better-than-forecast earnings offset the worst slump for Apple Inc. (AAPL) in four years.
The S&P 500 (SPX) was unchanged at 1,494.82, after rallying as much as 0.5 percent earlier. The Dow Jones Industrial Average gained 46 points, or 0.3 percent, to 13,825.33. The Nasdaq 100 Index (NDX) slid 1.4 percent to 2,723.53. More than 6.8 billion shares traded hands on U.S. exchanges today, or 10 percent above the three-month average.