Daily Market Outlook from ACFX 09/13/2013

[Atlas CapitalFx]

Daily Market Outlook from ACFX 09/13/2013


Important Financial Indicators of the day

USD - 13:30 (GMT) - Core Retail Sales m/m - Forecast 0.3% - Previous 0.5%
USD - 13:30 (GMT) - PPI m/m - Forecast 0.2% - Previous 0.0%
USD - 13:30 (GMT) - Retail Sales m/m - Forecast 0.5% - Previous 0.2%
USD - 14:55 (GMT) - Prelim UoM Consumer Sentiment - Forecast 82.6 - Previous 82.1


Currencies

◾EUR/USD The dollar advanced against most of its major peers before a government report forecast to show U.S. retail sales accelerated.

◾The dollar rose 0.3 percent to 99.81 yen at 7:15 a.m. in London, set for a 0.7 percent weekly gain. It advanced 0.2 percent to $1.3267 per euro from $1.3299 yesterday, paring to 0.7 percent its decline since Sept. 6. The greenback yesterday touched $1.3325, matching the weakest since Aug. 29.

◾GBP/USD The pound was set for a second weekly advance versus the dollar before a construction output report analysts said will add to signs the U.K. economy is gaining momentum.

◾The pound was little changed at $1.5789 as of 7:32 a.m. London time after rising to $1.5840 yesterday, the highest since Feb. 8. It has gained 1 percent this week.

◾USD/JPY The Bank of Japan’s unprecedented bond-buying program designed to reach an inflation target of 2 percent in two years, combined with the Federal Reserve’s forecast trimming of monthly bond purchases, is putting pressure on the yen.

◾The Japan’s currency slid 0.1 percent to 99.66 per dollar as of 1:41 p.m. in Tokyo. That compares with an average of 99.71 in the past decade.



Commodities

◾Oil West Texas Intermediate oil swung between gains and losses as the U.S. and Russia began talks on a plan for Syria to surrender its chemical weapons to avert a strike that has fanned concern of exports being disrupted.

◾Brent for October settlement, which expires today, gained $1.13, or 1 percent, to $112.63 a barrel on the London-based ICE Futures Europe exchange yesterday. The more active November future increased $1.34 to $111.53. The front-month European benchmark crude ended the session at a premium of $4.03 to WTI.

◾Gold slumped to a five week low, heading for its biggest weekly loss in more than two months, on speculation the U.S. Federal Reserve will taper asset purchases and as Goldman Sachs Group Inc. predicted further declines.

◾Bullion for immediate delivery fell as much as 1 percent to $1,308.18 an ounce, the lowest since Aug. 9, and was at $1,311.98 by 2:06 p.m. in Singapore. Prices earlier climbed 0.7 percent. The metal fell 3.2 percent yesterday and is down 5.7 percent this week, the most since the period to June 21.



Equities

◾Asian stocks sank, with the regional benchmark index headed for the biggest drop since September 2011, as Japanese shares plummeted after China’s manufacturing output unexpectedly contracted and the yen strengthened.

◾The MSCI Asia Pacific Index declined 3.7 percent to 138.16 as of 3:57 p.m. in Tokyo, with about 12 shares falling for each that rose. The measure surged 11 percent this year through yesterday as Japanese shares rallied as the Bank of Japan stepped up stimulus efforts and the U.S. economy improved. Fed Chairman Ben S. Bernanke said yesterday a premature withdrawal of quantitative easing would put the U.S. economic recovery at risk.

◾European stocks dropped as concern grew the Federal Reserve will scale back its stimulus measures if the U.S. economy improves and as data showed Chinese manufacturing is shrinking. U.S. index futures and Asian shares also fell as Japan’s Topix Index tumbled the most in two years.

◾The Stoxx 600 Index dropped 1.6 percent to 305.52 at 8:05 a.m. in London. The benchmark gauge rose 0.2 percent yesterday, extending its highest level since June 2008, after Fed Chairman Ben S. Bernanke said in a testimony to a Joint Committee of Congress in Washington that reducing stimulus measures too soon would endanger economic recovery.

◾U.S stocks stocks fell, with benchmark indexes retreating from record highs, as concern grew that the Federal Reserve will scale back its stimulus efforts if the labor market continues to improve.

◾The S&P (SPX) 500 fell 0.8 percent to 1,655.35 at 4 p.m. in New York, after rallying as much as 1.1 percent earlier. The Dow Jones Industrial Average lost 80.41 points, or 0.5 percent, to 15,307.17. About 8.3 billion shares changed hands today, 32 percent above the three-month average.