Daily Market Outlook from ACFX 09/04/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 09/04/2013


Important Financial Indicators of the day

GBP - 09:30 (GMT) - Services PMI - Forecast 59.3 - Previous 60.2
CAD - 13:30 (GMT) - Trade Balance - Forecast -0.3B - Previous -0.5B
USD - 13:30 (GMT) - Trade Balance - Forecast -38.7B - Previous -34.2B
CAD - 15:00 (GMT) - BOC Rate Statement
CAD - 15:00 (GMT) - Overnight Rate - Forecast 1.00% - Previous1.00%


Currencies

◾EUR/USD The dollar traded 0.2 percent from a six-week high against the euro
amid signs the U.S. economic recovery is gaining traction, adding to the case for
the Federal Reserve to scale back stimulus this month.

◾The U.S. currency was little changed at $1.3165 per euro as
of 1:44 p.m. in Tokyo after touching $1.3139 yesterday, the
strongest since July 22. The dollar bought 99.69 yen from 99.57
yesterday, when it reached 99.86, the highest since Aug. 2.

◾GBP/USD The pound rose for a fifth day versus the euro as a report showed
a gauge of U.K. construction based on a survey of purchasing managers increased
for a fourth month in August, reaching the highest in almost six years.

◾The pound appreciated 0.2 percent to 84.72 pence per euro
at 4:10 p.m. London time after reaching 84.46 pence, the
strongest level since May 21. Sterling was little changed at
$1.5533.

◾USD/CAD Canada’s dollar rose versus most major peers on bets demand for oil
will be buoyed by heightened tensions in the Middle East as U.S. President Barack Obama
seeks support in Congress for a military strike on Syria

◾The loonie, as the Canadian dollar is nicknamed for the
image of a waterfowl on the C$1 coin, gained 0.1 percent to
C$1.0535 per U.S. dollar at 5 p.m. in Toronto, after dropping
0.4 percent last week, its third straight weekly decline. One
loonie buys 94.92 U.S. cents.


Commodities

◾Oil West Texas Intermediate fluctuated as President Barack Obama
won support from two opposition lawmakers for a military strike on Syria,
bolstering concern Middle East oil supply may be disrupted if the conflict widens. est in almost six years.

◾WTI for October delivery was at $108.31 a barrel in electronic trading on the New York
Mercantile Exchange, down 23 cents, at 2:50 p.m. Sydney time. The contract climbed
89 cents from the Aug. 30 close to settle at $108.54 yesterday. Floor trading was closed
Sept. 2 for the Labor Day holiday. The volume of all futures traded was 52 percent below
the 100-day average.

◾Brent for October settlement was up 13 cents at $115.81 a
barrel on the London-based ICE Futures Europe exchange. The
European benchmark crude was at a premium of $7.51 to WTI, from
$7.14 yesterday.

◾Gold traded little changed above
$1,400 an ounce after rising the most in a week, as investors
weighed the prospects for reduced stimulus in the U.S. against
the threat of a military attack against Syria.

◾Spot gold traded at $1,412.97 an ounce at 11:49 a.m. in
Singapore from $1,412.42 yesterday, when prices climbed 1.5
percent, the most since Aug. 23. Gold capped the first back-to-back
monthly gain in a year in August as turmoil in the Middle East fanned haven demand.



Equities

◾Asian stocks outside Japan fell,
with the regional index snapping a four-day advance, as the
threat of a military strike against Syria left oil trading near
a two-year high, curbing the outlook for global economic growth.

◾The MSCI Asia Pacific Excluding Japan Index lost 0.2
percent to 441.17 as of 1:01 p.m. in Hong Kong as four shares
fell for every three that rose. Futures on the Standard & Poor’s
500 Index rose 0.2 percent.

◾European stocks declined as U.S. Speaker of the House John Boehner
said he supports the president’s call for action against Syria, offsetting
better-than-forecast manufacturing data.

◾The Stoxx Europe 600 Index fell 0.4 percent to 301.78 at
the close. Stock markets were rattled earlier, with the gauge
losing as much as 0.7 percent, by what Israel said was a joint
flight test with the U.S. of its Arrow missile-interception
system over the Mediterranean Sea. The measure lost 2.4 percent
last week on concern the U.S. and its allies would take military
action against Syria for chemical-weapons attacks that the Obama
administration said killed more than 1,400 people.

◾U.S stocks rose, following the worst month since May 2012 for the Standard &
Poor’s 500 Index, as better-than-forecast economic data overshadowed
concern over possible military action against Syria.

◾The S&P 500 climbed 0.4 percent to 1,639.77 at 4 p.m. in New York, paring an earlier
advance of as much as 1.1 percent. The Dow Jones Industrial Average added 23.65 points,
or 0.2 percent, to 14,833.96. About 6.6 billion shares changed hands, the highest level since
Aug. 1. U.S. exchanges were closed yesterday for the Labor Day holiday.