Daily Market Outlook from ACFX 09/02/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 09/02/2013


Important Financial Indicators of the day

GBP - 11:30 (GMT) - Manufacturing PMI - Forecast 55.2 - Previous 54.6



Currencies

◾USD/JPY The yen fell against all of its major peers after speculators added to bearish
bets on the currency and on signs Japan’s prime minister is making progress on policies
that have helped weaken the currency.

◾The yen lost 0.5 percent to 98.64 per dollar as of 1:11 p.m. in Tokyo from the end
of last week, when it capped a 0.6 percent weekly gain. Japan’s currency weakened 0.4 percent
to 130.30 per euro from Aug. 30, when it reached 129.31, the strongest since Aug. 20.

◾AUD/USD The Australian and New Zealand dollars rallied from losses last week after Chinese
government data showed manufacturing reached a 16-month high, bolstering the outlook for
exports from both South Pacific nations.

◾Australia’s dollar rose 0.8 percent to 89.68 U.S. cents as of 2:40 p.m. in Sydney after touching
88.93 on Aug. 30, matching the least since Aug. 5. It gained 1.2 percent to 88.44 yen

◾USD/CAD The Canadian currency fell for a third week as the possibility of a U.S. military strike
against Syria damped appetite for riskier assets and burnished the haven appeal of the U.S. dollar.

◾The loonie, as Canada’s dollar is nicknamed for the image of the aquatic bird on the C$1 coin,
lost 0.4 percent this week and dropped 2.5 percent this month.



Commodities

◾Oil West Texas Intermediate crude fell for a third day after President Barack Obama said he’ll seek
authorization from Congress before ordering military action against Syria, easing concern that
an imminent strike would disrupt Middle East oil exports.

◾WTI for October delivery slid as much as $3.44 to $104.21 a barrel in electronic trading on the New York
Mercantile Exchange and was at $106.11 at 2 p.m. Sydney time. The volume of all futures traded was
almost double the 100-day average. The contract rose 1.2 percent last week and 2.5 percent in August,
a third monthly gain.

◾Brent for October settlement decreased as much as $1.81, or 1.6 percent, to $112.20 a barrel on
the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium
of $6.89 to WTI futures, from $6.36 on Aug. 30.

◾Gold fell as prospects for an attack against Syria receded, and on bets the U.S. Federal Reserve will
start to pare stimulus as the economy improves. Silver halted a three-day drop as manufacturing in China
sustained an expansion.

◾Spot gold lost as much as 1.6 percent to $1,373.38 an ounce, falling for a third day to the lowest level
since Aug. 23. It traded at $1,389.79 at 9:54 a.m. in Singapore. Prices have retreated since reaching
a three-month high of $1,433.83 on Aug. 28 as improving data supported the case for the Fed to start
reducing the $85 billion in monthly asset purchases this month.



Equities
◾Asian stocks gained for a third day after a gauge of China’s manufacturing rose to a 16-month high,
boosting investor confidence in the global economic recovery.

◾The MSCI Asia Pacific Index advanced 0.8 percent to 131.25 as of 11:44 a.m. in Hong Kong. Almost
two shares climbed for each that declined. The measure fell 1.6 percent in August, the third drop I
n four months. The gauge rose 0.6 percent this year through Aug. 30, lagging a 15 percent surge
in the Standard & Poor’s 500 Index as investors sold assets across the region on expectations
the Federal Reserve will taper U.S. economic stimulus this month.