Daily Market Outlook from ACFX 08/26/2013
Important Financial Indicators of the day
USD - 15:30 (GMT) - Core Durable Good Orders m/m - Forecast 0.6% - Previous -0.1%
◾EUR/USD The dollar maintained a weekly
decline against the euro as investors speculated over whether
the U.S. economy is strong enough to support a reduction in
Federal Reserve stimulus next month.
◾The dollar was little changed at $1.3381 per euro as of
2:04 p.m. in Tokyo from Aug. 23, when it completed a 0.4 percent
weekly loss. It traded at 98.60 yen from 98.72 at the end of
last week. The euro was at 131.94 yen, after reaching 132.43 on
Aug. 23, the most since July 25.
◾AUD/USD Australian government bonds rose along with the currency,
as investors weigh the U.S. central bank’s timing for tapering stimulus
that has supported higher-yielding assets globally.
◾Australia’s 10-year government bond yield dropped four
basis points, or 0.04 percentage point, to 4.01 percent as of
2:13 p.m. in Sydney. The rate on sovereign debt due in two years
fell one basis point to 2.51 percent. The nation’s currency
added 0.1 percent to 90.40 U.S. cents after gaining 0.7 percent
in the two days ended Aug. 23.
◾USD/CAD Canada’s dollar lost the most in more than two months as wholesale
and retail sales fell and consumer-price gains stayed below the central bank’s
inflation target for a 15th month, fueling concern the economy is slowing.
◾Canada’s currency depreciated 1.5 percent to C$1.0496 per
U.S. dollar this week in Toronto, the biggest drop since the
five days ended June 21. It touched C$1.0568 yesterday, the
weakest since July 9. One Canadian dollar buys 95.27 U.S. cents.
◾Oil West Texas Intermediate crude rose for a third day as speculation the Federal Reserve
will maintain economic stimulus boosted the demand outlook in the world’s
biggest oil user. Brent’s premium to WTI narrowed.
◾WTI for October delivery climbed as much as 95 cents to $107.37 a barrel in
electronic trading on the New York Mercantile Exchange and was at $107.02
at 1:57 p.m. Sydney time. The contract climbed 1.3 percent to $106.42 on Aug. 23,
the biggest gain since Aug. 9.
◾Brent for October settlement advanced 26 cents to $111.30 a
barrel on the London-based ICE Futures Europe exchange. The
European benchmark crude was at a premium of $4.27 to WTI, down
from $4.62 on Aug. 23.
◾Gold swung between gains and losses after climbing to the highest level since
June as investors weighed the outlook for stimulus in the U.S., with a
slump in new-home sales boosting the case for sustained debt-buying.
◾Bullion for immediate delivery rose as much as 0.7 percent to $1,407.18 an ounce,
the highest since June 7, before trading 0.2 percent lower at $1,395.64 at 11:23 a.m. in Singapore.
Gold for December delivery rose as much as 0.8 percent to $1,407
an ounce on the Comex, also the highest since June 7.
◾Asian stocks rose for a second day after a slump in U.S. home sales eased speculation the Federal Reserve will reduce economic stimulus next month. ◾The MSCI Asia Pacific Index advanced 0.3 percent to 131.80
as of 1:42 p.m. in Tokyo, with all of the 10 industry groups on
the gauge rising.