Friday October 1, 2004 - 17:31:07 GMT
Share This Story
GCI Financial - www.gcitrading.com
Forex Market Commentary and Analysis (1 October 2004)
The euro weakened vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.2385 level after testing offers around the $1.2440 level. The common currency regained some ground during North American dealing after a mixed bag of U.S. economic data were released. It was reported that the August manufacturing ISM index came in at 58.5 from the previous reading of 59.0. Notably, the employment index came in at 58.1 from 55.7 while the prices paid index lessened to 76.0 from 81.5. August construction spending data were released today and they came in better-than-expected at +0.8% from the +0.3% rate that was expected. The final September University of Michigan consumer sentiment index was released today and it was reported at 94.2, down from the initial estimate of 95.9. Finally, the Chicago PMI index was reported at 61.3 from 57.3 the previous month with both the employment index and new orders index posting rises. PMI data were released in the eurozone today and they saw EMU-12 September PMI fall 0.8 index points to a seven-month low of 53.1. These data suggest manufacturing activity continues to lose momentum. Traders await word from Today’s G7 meetings and will focus in on policymakers’ statements on the recent spike in oil prices.
The yen came off vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥110.60 level after testing bids around the ¥109.85 level. All eyes are on Washington, D.C. this weekend as G7 finance ministers are convening from today. U.S. Treasury Secretary Snow met with Finance Minister Tanigaki and Bank of Japan Governor Fukui and reported “he was pleased by progress in Japan’s economy.” Speaking about China, the U.S. delegation said Chinese G7 participants have “reaffirmed China's commitment to further advance reform and to push ahead firmly and steadily to a market-based flexible exchange rate, and described the steps the Chinese government has taken to create conditions to establish a more flexible exchange rate. The U.S. side expressed support for continued efforts by the Chinese government to bring about this goal as rapidly as possible.” This statement, of course, is political grandstanding ahead of the U.S. November presidential election and follows an action by bipartisan U.S. legislators to “toughen its policy on China’s fixed currency regime.” Data released in Japan overnight included the quarterly tankan report released by BoJ. The diffusion index of large manufacturers’ business sentiment improve for the sixth consecutive quarter with the current business conditions index at +26 from +22 in June. This represented the highest level since the middle of 1991. Notably, however, the forecast for December’s tankan came in at +21. Other data released in Japan today saw Japan’s jobless rate slide to +4.8% in August, down from July’s 4.9% rate. Also, core consumer prices in Tokyo fell 0.1% y/y in September, the 60th consecutive month of year-on-year declines, while the nationwide CPI was off 0.2% y/y. The Nikkei 225 stock index moved higher by 1.49% to close at ¥10,985.17 while the TOPIX was up 1.38% to close at ¥1,117.29. The euro gained marginal ground vis-à-vis the yen today as the single currency tested offers around the ¥137.20 level and was supported around the ¥136.50 level.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."