Daily Market Oulook from ACFX 08/22/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 08/22/2013


Important Financial Indicators of the day


EUR - 10:00 (GMT) - French Flash Manufacturing PMI - Forecast 50.4 - Previous 49.7
EUR - 10:30 (GMT) - German Flash Manufacturing PMI - Forecast -51.1 - Previous 50.7
USD - 15:30 (GMT) - Core Retail Sales m/m - Forecast 0.1% - Previous 1.2%
USD - 15:30 (GMT) - Unemployment Claims - Forecast329K - Previous 320K


Currencies

◾EUR/USD The dollar advanced versus most of
its major counterparts before housing and employment data that
may signal continued recovery in the U.S., boosting the case for
a reduction in central bank stimulus.

◾The dollar added 0.5 percent to 98.17 yen as of 1:31 p.m. in Tokyo. It gained 0.1 percent to $1.3340 per euro after climbing 0.5 percent yesterday. Europe’s shared currency bought 130.96 yen, 0.4 percent stronger than the close in New York

◾AUD/USD Australia’s dollar rallied against
all 16 major peers after a private report showed China’s
manufacturing expanded for the first time in four months,
boosting trade prospects.

◾Australia’s currency gained 0.3 percent to 89.93 U.S. cents
at 3:23 p.m. in Sydney after falling 2.4 percent in the previous
three sessions. The Aussie added 0.4 percent to NZ$1.1473 after
touching NZ$1.1483, the highest since Aug. 5. New Zealand’s
dollar was little changed at 78.43 U.S. cents.

◾USD/CAD The Canadian dollar dropped to a
six-week low after after Federal Reserve meeting minutes showed
officials in broad agreement to start tapering bond purchases
later this year.

◾The loonie, as Canada’s currency is nicknamed for the image
of the aquatic bird on the C$1 coin, depreciated 0.8 percent to
C$1.0474 per U.S. dollar at 5 p.m. in Toronto after touching
C$1.0483, the weakest level since July 10. One Canadian dollar
buys 95.48 U.S. cents.



Commodities

◾Oil West Texas Intermediate crude traded
near the lowest level in almost two weeks as signs that the U.S.
will taper economic stimulus this year raised speculation oil
demand may falter in the world’s biggest consumer.

◾WTI for October delivery was at $103.60 a barrel, down 25 cents, in electronic trading on the New York Mercantile Exchange at 9:54 a.m. Sydney time. The volume of all futures traded was about 67 percent below the 100-day average. The contract slid $1.26 to $103.85 yesterday, the lowest close since Aug. 8.

◾Brent for October settlement fell 34 cents, or 0.3 percent,
to $109.81 a barrel on the London-based ICE Futures Europe
exchange yesterday. The European benchmark crude ended the
session at a premium of $5.96 to WTI futures, the widest gap
since June 26.

◾Gold pared losses as investors weighed the minutes of the U.S. Federal Reserve’s last meeting, which reinforced expectations that stimulus will be tapered, against an unexpected increase in China’s manufacturing.

◾Spot gold fell as much as 0.8 percent to $1,355.30 an ounce,
before trading 0.2 percent lower at $1,364.49 at 10:40 a.m. in
Singapore. Prices fell 0.3 percent yesterday after the minutes
of the July meeting showed policy makers were comfortable with a
plan to start reducing bond buying later this year if the
economy improves, with a few saying tapering may be needed soon.



Equities

◾Asian stocks fell, with the regional
gauge close to wiping out all this year’s gains, as it heads for
its longest losing streak since November, after Federal Reserve
minutes showed officials support stimulus cuts this year.

◾The MSCI Asia Pacific Index dropped 0.9 percent to 129.45 as of 2:20 p.m. in Tokyo, less than 0.1 percent away from wiping out this year’s gains. About two stocks declined for each that rose as all 10 industry groups fell on the measure.

◾European stocks posted their longest losing streak in eight weeks amid speculation that the minutes of the Federal Reserve’s July meeting will give further details of when the central bank will slow its monthly bond purchases.

◾The Stoxx Europe 600 Index slipped 0.5 percent to 300.61 at the close of trading, extending its lowest level since July 31. The gauge has fallen 3.2 percent from this year’s high on May 22 as speculation mounted that the Fed will start to slow the pace of its quantitative-easing program next month.

◾U.S stocks fell, giving the Dow Jones Industrial Average its longest slump in 13 months, as minutes of the Federal Reserve’s July meeting showed officials support stimulus cuts this year if the economy improves.

◾The Standard & Poor’s 500 Index (SPX) lost 0.6 percent to 1,642.80 at 4 p.m. in New York, the lowest since July 8. The Dow dropped 105.44 points, or 0.7 percent, to 14,897.55. The measure retreated for a sixth day, the longest losing streak since July 2012. About 5.6 billion shares changed hands on U.S. exchanges today, 11 percent below the three-month average.