Daily Market Outlook from ACFX 08/30/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 08/30/2013


Important Financial Indicators of the day

CAD - 15:30 (GMT) - GDP m/m - Forecast -0.4% - Previous 0.2%


Currencies

◾EUR/USD The dollar reached the highest in four weeks against a basket of its
peers before data forecast to show U.S. consumer spending rose for a third month,
building the case for the Federal Reserve to reduce stimulus next month.

◾The U.S. currency slipped 0.2 percent to 98.14 yen from
yesterday, when it advanced 0.7 percent, the most since Aug. 22.
The greenback slid 0.1 percent to $1.3248 per euro, following a
0.7 percent advance yesterday. The yen rose 0.2 percent to
130.01 per euro.

◾GBP/USD The pound strengthened the most in
three weeks versus the euro as optimism Britain’s economic
growth is gathering pace boosted demand for the nation’s assets.

◾The pound strengthened 0.7 percent to 85.36 pence per euro at 4:29 p.m. London time,
the biggest gain since Aug. 7. It advanced 0.3 percent yesterday after sliding to 86.52 pence,
the weakest level since Aug. 7. The U.K. currency declined 0.2 percent to $1.5494.

◾USD/CAD Canada’s dollar fell to its lowest this week before a report tomorrow that may show
the nation’s economy shrank in June the most since 2009, while a gain in U.S. growth boosted
the case for that country to slow stimulus.

◾The loonie, as Canada’s currency is nicknamed for the image
of the aquatic bird on the C$1 coin, depreciated 0.4 percent to
C$1.0532 per U.S. dollar at 5 p.m. in Toronto. It touched
C$1.0541, the weakest level since Aug. 23, and has lost 2.4
percent in August. One loonie buys 94.95 U.S. cents.



Commodities

◾Oil West Texas Intermediate crude fell for a second day after U.K. lawmakers rejected
a motion for military action against Syria, reducing the prospect of an imminent
strike and easing concern that unrest will disrupt Middle East oil supplies.

◾WTI for October delivery dropped as much as $2.05 to $106.75 a barrel in electronic trading
on the New York Mercantile Exchange and was at $107.64 at 2:40 p.m. Sydney time. The contract
lost 1.2 percent to $108.80 yesterday, declining from the highest close since May 2011.
Prices are up 2.5 percent in August, poised for a third monthly gain.

◾Brent for October settlement decreased as much as $1.53, or
1.3 percent, to $113.63 a barrel on the London-based ICE Futures
Europe exchange. The European benchmark crude was at a premium
of $6.69 to WTI, from $6.36 yesterday.

◾Gold swung between gains and losses as better-than-expected U.S. data backed the case for
the Federal Reserve to cut stimulus, while the U.S. may proceed with a strike against Syria
even after U.K. lawmakers rejected action

◾Bullion for immediate delivery gained and lost as least 0.3 percent, before trading 0.1 percent
t higher at $1,409.74 an ounce at 11:56 a.m. in Singapore. Prices are heading for a second
monthly advance in the best run since September. Gold for December delivery dropped 0.3
percent to $1,409.40 an ounce on the Comex, paring a fourth weekly gain.



Equities

◾Asian stocks swung between gains and
losses, with energy producers leading declines as the price of
oil fell after the U.K parliament voted against military strikes
on Syria. Japanese utilities rose.

◾The MSCI Asia Pacific Index rose less than 0.1 percent to
129.85 as of 1:13 p.m. in Tokyo, having swung between gains of
as much as 0.5 percent and losses of 0.1 percent. The gauge is
down 1.2 percent this week, a second week of losses, while it
has dropped 1.8 percent this month.

◾U.S stocks rose, sending the
Standard & Poor’s 500 Index higher for a second day, as data
showed the economy expanded at a faster pace in the second
quarter and concerns over Syria eased.

◾The S&P 500 rose 0.2 percent to 1,638.17 at 4 p.m. in New
York, paring an earlier advance of as much as 0.7 percent. The
Dow Jones Industrial Average gained 16.44 points, or 0.1
percent, to 14,840.95.