By GCI Fx Research
€
The euro came off vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3515 level and was supported around the US$ 1.3220 level. U.S. March non-farm payrolls printed at -663,000 and the unemployment rate reached 8.5%, a new 25-year high,. Average hourly earnings were up +0.2% and January’s non-farm payrolls tally was revised for the worse by 86,000 jobs. The U.S. economy has now shed more than five million jobs since the U.S. recession started in December 2007. Other U.S. data today saw the March ISM non-manufacturing index contract to 40.8 from 41.6 ub February. These negative service sector data suggest the economy may be contracting more than expected and conflicts with recent U.S. economic data that suggested the economy may have bottomed out in late Q1. Some traders view the final outcome of the Group of Twenty meeting as a success while others believe it was short on details including a lack of a commitment on the part of all nations to increase their fiscal stimuli. In eurozone news, the EMU-16 composite PMI rallied to 38.3 from 36.2 in February, the largest monthly gain since October 2003. Many dealers believe the European Central Bank will enact quantitative easing measures in May. Euro bids are cited around the US$ 1.3245 level.
¥/ CNY
The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥100.25 level and was supported around the ¥99.35 level. Today’s represents the first time the greenback has traded above the psychologically-important ¥100 figure since 4 November. The yen lost some ground across the board as some investors expressed satisfaction with the outcome of the Group of Twenty meeting. Bank of Japan is expected to broaden its quantitative easing framework this year. The Nikkei 225 stock index climbed 0.34% to close at ¥8,749.84. U.S. dollar offers are cited around the ¥104.15 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥133.15 level and was capped around the ¥135.00 figure. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥148.70 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥88.45 level. The Chinese yuan depreciated vis-à-vis the U.S. dollar today as the greenback closed at CNY 6.8343 in the over-the-counter market, up from CNY 6.8340.
₤
The British pound moved higher vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.4845 level and was supported around the $1.4645 level. The March PMI services index improved to 45.5 from 43.2 in February. Data released on Wednesday saw manufacturing PMI strengthen and there is increasing speculation the U.K. economy may have bottomed out. Other data saw Halifax March house prices off 1.9% m/m and off 17.5% y/y. Cable bids are cited around the US$ 1.4515 level. The euro came off vis-à-vis the British pound as the single currency tested bids around the ₤0.9040 level and was capped around the ₤0.9160 level.
CHF
The Swiss franc depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.1390 level and was supported around the CHF 1.1315 level. Data released in Switzerland today saw March consumer price index off 0.3% m/m and off 0.4% y/y. Swiss National Bank is likely to maintain its quantitative easing framework. U.S. dollar bids are cited around the CHF 1.1165 level. The euro moved lower vis-à-vis the Swiss franc as the single currency tested bids around the CHF 1.5205 level while the British pound gained ground vis-à-vis the Swiss franc and tested offers around the CHF 1.6835 level.
Daily Market Commentary provided by GCI Financial Ltd.
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