Daily Market Outlook from ACFX 09/05/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 09/05/2013


Important Financial Indicators of the day

GBP - 11:00 (GMT) - Asset Purchase Facility - Forecast 375B - Previous 375B
GBP - 11:00 (GMT) - Official Bank Rate - Forecast 0.50% - Previous 0.50%
EUR - 11:45 (GMT) - Minimum Bid Rate - Forecast 0.50% - Previous 0.50%
USD - 12:15 (GMT) - ADP Non Farm Employment Change - Forecast 175K - Previous 200K
EUR - 12:30 (GMT) - ECB Press Conference
USD - 12:30 (GMT) - Unemployment Claims - Forecast 332K - Previous 331K


Currencies

◾EUR/USD The dollar weakened against its higher-yielding counterparts after a report showed China’s services industry expanded last month, adding to signs the global economy is recovering.

◾The U.S. currency dropped 0.3 percent to $1.3207 per euro after climbing yesterday to the highest level since July 22. The greenback gained 0.2 percent to 99.74 yen. Japan’s currency lost 0.5 percent to 131.73 per euro.

◾GBP/USD The pound traded near the strongest level in more than three months against the euro before the Bank
of England and European Central Bank set policies today.

◾Sterling fetched 84.46 pence per euro at 2:06 p.m. in Tokyo from 84.52 yesterday, when it reached 84.27, the highest since May 16. The pound has gained 2 percent since Aug. 27.

◾USD/CAD Sterling fetched 84.46 pence per euro at 2:06 p.m. in Tokyo from 84.52 yesterday, when it reached 84.27, the highest since May 16. The The Canadian dollar strengthened for a second day as optimism about faster global economic growth fueled demand for riskier assets and Canada’s central bank kept its main interest rate unchanged. ound has gained 2 percent since Aug. 27.

◾The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, rose 0.3 percent to
C$1.0493 per U.S. dollar at 5 p.m. in Toronto. It gained 0.6 percent earlier, the biggest intraday move since Aug. 8. One
loonie buys 95.30 U.S. cents.



Commodities

◾Oil West Texas Intermediate crude traded near the lowest price in more than a week as the U.S. weighed limited military strikes on Syria, easing concern the conflict will spread and disrupt Middle East oil supplies.

◾WTI for October delivery was at $107.55 a barrel in electronic trading on the New York Mercantile Exchange, up 32 cents, at 3:15 p.m. Sydney time. The contract dropped 1.2 percent to $107.23 yesterday, the biggest decline since Aug. 20 and the lowest settlement since Aug. 26. The volume of all futures traded was about 61 percent below the 100-day average.

◾Brent for October settlement was 25 cents higher at $115.16 a barrel on the London-based ICE Futures Europe exchange. The
European benchmark crude was at a premium of $7.62 to WTI futures, from $7.68 yesterday.

◾Gold advanced after the biggest drop in a month as the Senate Foreign Relations Committee voted to authorize President Barack Obama to conduct a limited U.S. military operation against Syria, boosting haven demand.

◾Bullion for immediate delivery gained as much as 0.3 percent to $1,395.07 an ounce, and was at $1,393.24 at 11:42 a.m. in Singapore. Prices retreated 1.5 percent yesterday, the most since Aug. 6. Gold for December delivery rose 0.2 percent to $1,393 an ounce on the Comex in New York.




Equities

◾Asian stocks rose for a sixth day, the longest streak of gains in nine months, after the Federal Reserve and Bank of Japan said they saw moderate recoveries in two of the world’s three biggest economies.

◾The MSCI Asia Pacific Index gained 0.4 percent to 133.59 as of 11:47 a.m. in Hong Kong as about two shares rose for each
that fell. The measure is on course for its longest rising streak since December. Japan’s Topix and Standard & Poor’s 500
Index futures were little changed.

◾U.S stocks rose, led by automakers and technology companies, as a Senate panel voted to authorize military action in Syria and the Federal Reserve said the economy maintained a “modest to moderate” pace of growth.

◾The Standard & Poor’s 500 Index rose 0.8 percent to 1,653.08 at 4 p.m. in New York. The Dow Jones Industrial Average added 96.91 points, or 0.7 percent, to 14,930.87. About 6.1 billion shares changed hands on U.S. exchanges, in line with the three-month average.