Daily Market Outlook from ACFX 22/1/2013

[Atlas CapitalFx]

Daily Market Outlook

Posted by on January 22, 2013

Important Financial Indicators of the day Forecast Previous
JPY Tentative BOJ Press Conference
EUR 12:00 (GMT) German ZEW Economic Sentiment 12.2 6.9
CAD 15:30 (GMT) Core Retail Sales m/m 0.1% 0.5%
USD 17:00 (GMT) Existing Home Sales 5.09M 5.04M
EUR 20:00 (GMT) ECB President Draghi Speaks

Currencies

AUD/JPY The Australian dollar halted a two- day decline against the yen before the Bank of Japan (8301) concludes a policy meeting amid speculation it will announce further stimulus measures.
Australia’s dollar traded at 94.14 yen as of 1:41 p.m. in
Sydney from 94.23 yesterday after a 0.6 percent two-day decline.
It rose 0.1 percent to $1.0522. New Zealand’s dollar bought
75.04 yen from 74.91 yesterday and rose 0.4 percent to 83.89
U.S. cents

USD/JPY The yen weakened toward the lowest level since June 2010 after the Bank of Japan (8301) announced open- ended asset purchases and adopted a 2 percent inflation target.
The yen lost 0.2 percent to 89.78 per dollar at 1:11 p.m. in Tokyo. Japan’s currency weakened 0.4 percent to 119.78 per euro following a 0.6 percent advance to 119.30 yesterday. The euro gained 0.3 percent to $1.3350.

Commodities

Oil traded near a four-month high in New York as Japan’s central bank said it will expand asset purchases to lift the world’s third-biggest crude consumer out of its third recession in five years. Brent prices advanced.
Crude for February delivery, which expires today, was at
$95.59 a barrel in electronic trading on the New York Mercantile
Exchange, up 3 cents at 11:53 a.m. Singapore time. The more
active March contract gained 8 cents at $96.12. Yesterday’s
transactions will be booked with today’s trades for settlement
purposes. Front-month futures rose 7 cents to $95.56 on Jan. 18,
the highest close since Sept. 17.
Brent oil for March settlement on the London-based ICE
Futures Europe exchange traded at $112.05 a barrel, up 34 cents.
The average volume of all contracts was 4 percent above the 100-
day average. The European benchmark crude was at a premium of
$15.97 to New York futures for the same month. The spread was
$15.16 on Jan. 17, the narrowest since July 24.

Gold extended its advance toward a one-month high after the Bank of Japan set a 2 percent inflation target and shifted to Federal Reserve-style open-ended asset purchases in an attempt to end two decades of deflation.
Spot gold increased as much as 0.2 percent to $1,693.30 an
ounce and traded at $1,692.60 at 12:08 p.m. in Singapore.
Bullion reached a one-month high of $1,696.29 on Jan. 17 on
concern global growth may slow. Gold for February delivery
gained 0.3 percent to $1,691.90 on the Comex in New York.

Equities

Asian stocks rose as the Bank of Japan (8301) said it would set a 2 percent inflation target and shifted to Federal Reserve-style open-ended asset purchases.
The MSCI Asia Pacific Index rose 0.2 percent to 132.43 as of of 1:12 p.m. in Tokyo, with about the same number of stocks rising and falling. Asia’s benchmark equities index is poised to gain for a third month amid signs the U.S. and Chinese economies are recovering and as Japanese shares rallied on Prime Minister Shinzo Abe’s more aggressive stimulus policies.

European stocks climbed to a one-
week high as euro-area finance ministers met for the first time
this year to address the region’s debt crisis. U.S. index
futures advanced.

The Stoxx Europe 600 Index (SXXP) rose 0.3 percent to 287.78 at the close of trading, the highest since Jan. 9. The gauge has gained 2.9 percent this year after U.S. lawmakers agreed on a budget deal avoiding most tax increases and spending cuts that had threatened to push the economy into a recession. With the so-called fiscal cliff averted, Congress now must decide whether to lift the federal debt limit as soon as mid-February

Canadian stocks rose, closing at the highest level in more than 17 months, as European finance ministers met for the first time this year to discuss a solution to the region’s debt crisis.
The Standard & Poor’s/TSX Composite Index (SPTSX) rose 68.56 points, or 0.5 percent, to 12,794.25 in Toronto, the highest close since August 2011. The benchmark gauge has gained 2.9 percent this year. Markets in New York were closed for Martin Luther King Jr. Day.