Daily Market Outlook from ACFX 08/28/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 08/28/2013



Important Financial Indicators of the day


GBP - 14:45 (GMT) - BOE Gov Carney Speaks
USD - 17:00 (GMT) - Pending Home Sales m/m - Forecast 0.2% - Previous -0.4%


Currencies

◾USD/JPY The yen held its biggest gains in 2
1/2 months against the dollar and euro as traders sought haven
investments amid escalating tension in Syria.

◾The yen was little changed at 97.06 per dollar at 1:55 p.m.
in Tokyo from yesterday when it rallied 1.5 percent, the most
since June 11. It touched 96.82, the strongest since Aug. 12.
Japan’s currency gained 0.1 percent to 129.83 per euro after
rising 1.3 percent yesterday, the most since June 14.

◾USD/CAD Canada’s dollar advanced from almost a seven-week low after crude oil,
the nation’s biggest export, climbed to the highest level since July on
speculation tension in Syria will disrupt Middle East supplies.

◾The loonie, nicknamed for the image of the aquatic bird on the C$1 coin,
appreciated 0.3 percent to C$1.0474 per U.S. dollar at 5 p.m. in Toronto
after touching 1.0472, the strongest since Aug. 22. It lost as much as
0.4 percent earlier to C$1.0540 after touching C$1.0568 on Aug. 23,
the weakest since July 9. One Canadian dollar buys 95.48 U.S. cents.



Commodities

◾Oil West Texas Intermediate crude surged to the highest price since May 2011
on concern that conflict in Syria may spread and threaten oil supplies from the Middle East.

◾WTI for October delivery rose as much as $3.11 to $112.12 a
barrel in electronic trading on the New York Mercantile
Exchange, the highest intraday price since May 3, 2011. It was
at $112.03 at 2:47 p.m. Sydney time. The volume of all futures
traded was about 340 percent above the 100-day average. The
contract increased $3.09 to $109.01 yesterday, the highest close
since Feb. 24 last year. Prices are up 22 percent in 2013.

◾Brent for October settlement advanced as much as $2.87, or
2.5 percent, to $117.23 a barrel on the London-based ICE Futures
Europe exchange after settling yesterday at the highest since
Feb. 25. The European benchmark crude was at a premium of $5.07
to WTI from $5.35 yesterday.

◾Gold traded near the highest level since May after a four-day rally
as speculation that the U.S. may lead military strikes against Syria within days
spurred investors’ demand for a haven. Silver and platinum advanced.

◾Bullion for immediate delivery rose as much as 0.3 percent to $1,419.55
an ounce and was at $1,417.17 at 11:38 a.m. in Singapore. Prices climbed
to $1,423.95 yesterday, the highest since May 15. Gold for December delivery
declined 0.2 percent to $1,417 an ounce on the Comex after rising 2 percent yesterday.



Equities

◾Asian stocks slumped, with the
regional benchmark index heading for the lowest close in two
months, on concern the U.S. will take military action against
Syria for using chemical weapons.

◾The MSCI Asia Pacific Index dropped 1.9 percent to 128.72
as of 12:51 p.m. in Tokyo, heading for the lowest close since
June 27 as more than eight shares fell for each that rose. The
gauge is on course for its eighth decline in 10 days as the
prospect of the Federal Reserve paring stimulus as soon as next
month spurs investors to shun riskier assets.

◾European stocks slid the most in nine weeks after U.S. Secretary
of State John Kerry said the Obama administration will hold Syria accountable
for using chemical weapons against its own people.

◾The Stoxx 600 slid 1.8 percent to 299.01 at the close in London. The equity
benchmark has still rallied 8.5 percent from this year’s low on June 24 as
the European Central Bank said that interest rates will remain low for an extended period.