Daily Market Outlook from ACFX 31/1/2013

[Atlas CapitalFx]

Daily Market Outlook

Posted by on January 31, 2013

Important Financial Indicators of the day Forecast Previous

CAD 15:30 (GMT) GDP m/m 0.2% 0.1%
USD 15:30 (GMT) Unemployment Claims 362K 330K

Currencies
■EUR/USD The euro may strengthen further against the dollar as the region’s economy exceeds forecasts, said Alan Ruskin, global head of Group of 10 foreign-exchange strategy at Deutsche Bank AG in New York.
The 17-nation euro gained 0.5 percent to $1.3553 per euro
at 9:45 a.m. New York time and topped $1.35 for first time since
December 2011. The 17-nation shared currency has strengthened
2.8 percent against the dollar this month.

■AUD/USD slid against most
of its 16 major counterparts as Asian stocks declined, sapping
demand for higher-yielding assets.
Australia’s dollar dropped 0.3 percent to $1.0390 as of
3:58 p.m. in Sydney and is little changed this month. New
Zealand’s currency, known as the kiwi, fell 0.1 percent to 83.50
U.S. cents, paring a monthly gain to 0.8 percent.

■USD/CAD traded close to a
six-month low versus its U.S. counterpart as data showed the
economy of the nation’s largest trading partner unexpectedly
shrank in the fourth quarter.
The loonie, as the Canadian dollar is known for the image
of the aquatic bird on the C$1 coin, was little changed at
C$1.0014 per U.S. dollar at 5 p.m. in Toronto after earlier
falling 0.4 percent to C$1.0053. One loonie buys 99.86 U.S.
cents. The currency touched C$1.01 on Jan. 28, the weakest level
since July 27.

Commodities
■Oil traded near the highest price in more than four months in New York as the Federal Reserve maintained an asset-purchase program to boost the economy of the world’s biggest crude-consuming nation.
Crude for March delivery was $97.92 a barrel, down 2 cent, in electronic trading on the New York Mercantile Exchange at 1:52 p.m. Singapore time. The average volume of all contracts traded was 59 percent below the 100-day average. Futures rose 37 cents to $97.94 yesterday, the highest close since Sept. 14. Prices are up 6.7 percent in January and poised for a third monthly gain, the longest run since April 2011.
Brent for March settlement climbed 21 cents to $115.11 a
barrel on the London-based ICE Futures Europe exchange. The
average volume of all contracts traded was 33 percent below the
100-day average. The European benchmark grade was at a premium
of $17.16 to West Texas Intermediate futures, from $16.96
yesterday.

■Gold climbed for a third day toward
a one-week high after data showed that the U.S. economy
unexpectedly shrank and the Federal Reserve maintained asset
purchases. Platinum headed for the best month in a year.
Spot gold gained as much as 0.2 percent to $1,680.80 an ounce, and traded at $1,679.55 at 1:13 p.m. in Singapore. Bullion climbed as much as 1.2 percent yesterday to $1,683.28, the highest price since Jan 24. The metal is poised to snap three months of losses. Platinum, the best-performing precious metal this year, has jumped 9.4 percent this month in the biggest advance since January 2012.

Equities
■Asian stocks swung between gains and losses on the busiest day of Japan’s earnings season, after the country’s industrial production missed estimates and U.S. growth unexpectedly stalled. Kawasaki Heavy Industries Ltd. (7012) jumped after raising its profit forecast.
The MSCI Asia Pacific Index rose less than 0.1 percent to 133.33 as of 3:01 p.m. in Tokyo, after falling as much as 0.4 percent. About an equal number of stocks declined as gained. Japan’s Nikkei 225 Stock Average (NKY) climbed 0.2 percent, reversing earlier losses in the last 17 minutes of trading.

■European stocks dropped the most this year as Saipem (SPM) SpA plunged and a report showed that the U.S. economy unexpectedly contracted in the fourth quarter.
The Stoxx Europe 600 Index lost 0.6 percent to 288.63 in London, falling from its highest level since Feb. 18, 2011. The gauge has still jumped 3.2 percent in January, heading for its longest streak of monthly gains since 1997.

■U.S stocks fell, dragging benchmark indexes from five-year highs, as the Federal Reserve said it will maintain its program to buy securities after the economy unexpectedly shrank in the fourth quarter.
The S&P 500 fell 0.4 percent to 1,501.96 at 4 p.m. in New York. The Dow Jones Industrial Average lost 44 points, or 0.3 percent, to 13,910.42. Both measures yesterday reached their highest levels since 2007. The Russell 2000 Index slid 1.2 percent, falling from yesterday’s record high. About 6.8 billion shares traded hands on U.S. exchanges today, or 9.5 percent above the three-month average