Daily Market Outlook from ACFX 09/23/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 09/23/2013



Important Financial Indicators of the day

EUR - 07:00 (GMT) - French Flash Manufacturing PMI - Forecast 49.3 - Previous 48.9
EUR - 07:30 (GMT) - German Flash Manufacturing PMI - Forecast 52.3 - Previous 51.8
USD - 13:00 (GMT) - ECB President Draghi Speaks


Currencies

◾EUR/USD The euro was 0.3 percent from a seven-month high against the dollar after Angela Merkel won an overwhelming endorsement from German voters, putting her on course for the biggest election tally since Helmut Kohl’s post-reunification victory of 1990.

◾The 17-nation currency traded at $1.3526 at 12 p.m. in Singapore from $1.3524 at the end of last week, near the seven-month high of $1.3569 reached Sept. 19. It slipped 0.2 percent to 134.07 yen. The euro has strengthened 2.5 percent this year
against the greenback and 17 percent versus the yen.

◾AUD/USD Australia’s currency climbed against 15 of its 16 major counterparts after data on China’s manufacturing surpassed economist estimates, boosting prospects for the South Pacific nation’s commodity exports.

◾The Aussie advanced 0.3 percent to 94.22 U.S. cents as of 12:30 p.m. in Sydney after falling 1.3 percent in the prior two sessions. The New Zealand dollar was little changed at 83.65 U.S. cents after losing 0.1 percent on Sept. 20.

◾GBP/USD The pound strengthened for a third week against the dollar after the Federal Reserve unexpectedly refrained from slowing debt purchases that have devalued the U.S. currency

◾The pound advanced 0.9 percent this week to $1.6022 as of 5:02 p.m. London time yesterday after climbing to $1.6163 on
Sept. 18, the highest level since Jan. 11. The U.K. currency dropped 0.8 percent to 84.40 pence per euro.




Commodities

◾Oil West Texas Intermediate crude fluctuated as signs Chinese manufacturing expanded the most
since March countered easing concern that conflict in Syria will spread and disrupt oil supplies.

◾WTI for November delivery fell as much as 33 cents to $104.42 a barrel in electronic trading on the New York
Mercantile Exchange and was at $104.72 a barrel at 11:17 a.m. Singapore time. The October contract, which expired Sept. 20,
closed at $104.67 a barrel, the lowest settlement since Aug. 21. The volume of all futures traded was about 43 percent below the
100-day average.

◾Brent for November settlement lost 8 cents, or 0.1 percent, to $109.14 a barrel on the London-based ICE Futures Europe
exchange. The contract closed 46 cents higher at $109.22 a barrel on Sept. 20. The European benchmark was at a premium of
$4.40 to WTI, down from $4.47 at the end of last week.

◾Gold will extend losses into next year as the U.S. economy improves, according to Citigroup Inc., which said the Federal Reserve’s surprise decision to maintain stimulus for now hasn’t changed the fundamental outlook.

◾Bullion may drop below $1,250 an ounce before the end of the year as economic data strengthens and investors expect the Fed to start reducing its asset purchases, analysts Ed Morse and Heath Jansen said in a report today. Bullion will average $1,250 next year, down from $1,405 in 2013, the analysts wrote



Equities

◾Asian stocks were little changed, with a regional benchmark index trading near a four-month high,
after a Chinese manufacturing index jumped more than forecast.

◾The MSCI Asia Pacific excluding Japan Index climbed less than 0.1 percent to 469.44 as of 1:15 p.m. in Hong Kong. The gauge reached a four-month high on Sept. 19 after the Federal Reserve maintained its bond-buying program. Japan’s market is closed today for a holiday.

◾European stocks climbed for a third straight week after the Federal Reserve unexpectedly refrained from reducing its monthly bond purchases and Lawrence H. Summers withdrew from consideration as chairman of the central bank.

◾The Stoxx Europe 600 Index advanced 0.9 percent to 314.2 this past week. The equity gauge has surged 5.7 percent in September, putting it on course for the biggest monthly gain in almost two years. The measure has climbed 12 percent in 2013 as
the euro area emerged from recession and central banks pledged to keep borrowing costs low to support the global economy.