User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday December 17, 2007 - 23:48:43 GMT

Share This Story:
| | Email

Forex Market News - Dollar Rallies on Forex Position Unwind - Momentum Clearly Slows


Monday, 17 December 2007 22:32:02 GMT

Written by Kathy Lien, Chief Currency Strategist

•    Dollar Benefits from Forex Position Unwind – Momentum Clearly Slows
•    British Pound Tests 2.01, Bulls Reemerge
•    Yen Loses Traction As Equities Decline

Written by David Rodríguez and John Kicklighter, Currency Analysts

US Dollar: Rally Continues but Momentum Slows

The US dollar continued to rally to fresh two-month highs against the euro and other major currencies, as traders showed little willingness to hold onto dollar shorts ahead of year-end celebrations. The rally began on an overnight sell-off in major Asian equity markets, with Hong Kong’s Hang Seng index losing a sizeable 3.5 percent and forcing a similar carry trade unwind. Continuation in stock market sell-offs through the later London trading session allowed for a further dollar advance, but greenback momentum finally slowed as North American traders took their seats through the New York open. Impressive Current Account and Net Treasury International Capital Flows results boosted the greenback’s prospects, but the news was not enough to push the buck to fresh heights. The national Current Account Deficit shrunk to its smallest in two years through the third quarter, while foreigners invested a net $114.0 billion in domestic securities through October. The Current Account result was largely expected, as a noteworthy decline in monthly trade balance deficits allowed the balance of payments to stabilize through the period. Yet the subsequent TIC’s report was very much unexpected—with the sharply positive surprise beating even the most optimistic of economist forecasts. A surge in foreign private investment into US capital markets was the driving force behind the positive surprise, but sovereign buying interest actually moderated through the period. Indeed, sovereign entities bought a mere  $21.8B in US securities—a number that paled in comparison to a $94.0B buying binge by private interests. The results suggest that foreigners have not lost their appetite for downtrodden US equity and fixed income markets. Yet it will be important to see whether this trend will continue through subsequent months, with a further deterioration in financial market conditions to undoubtedly damage foreign interest in US asset classes. So far the news is bullish for the US dollar, but a tepid reaction the release highlights forex traders’ indifference to October TIC’s results.

Euro positioning continues to unwind
Euro traders sent the single currency lower against most forex counterparts through the day of trade, as year-end squaring and a broader carry trade unwind doomed the EUR to further declines. Economic data for the Euro Zone was relatively mixed through the session, with PMI Manufacturing and Services results coming in almost squarely at consensus forecasts. According to official breakdowns of composite Purchasing Managers’ Index data, output growth in services and manufacturing industries slowed to their lowest levels in at least five months. Such figures are hardly a ringing endorsement for European economic strength, and a continued downtrend in these key numbers damage the case for further European Central Bank interest rate increases. As it stands, markets have clearly scaled back expectations for ECB rate hikes. Yet the central bank remains resolutely hawkish, and forex speculators may wait for a clear shift in rhetoric before ruling out further rate increases.

British Pound Tests 2.01, Bulls Reemerge
Selling pressure is building in GBPUSD, and it seems the only thing holding the pair back is technical support and inflation hopes. Friday’s selloff was revived this morning after the Rightmove House Prices indicator crossed the wires in worse shape than fundamental traders had expected. There was no official consensus attached to the report, but steady trend and sustained credit problems through the past few weeks suggested the reading would be yet another negative print. Officially, the 3.2 percent drop in prices for their December period marked the biggest monthly decline in five years. More discouraging than the sizable decline though was the fact that London prices were guiding the headline reading down, as the residential market in the capital represents a significant source of private investment. After this data hit the ticker, GBPUSD dropped for an exact touch of 2.01, though an 18-month old trend took the steam out of selling. Tomorrow’s inflation data could be a deciding factor for the pound’s long term trend with the MPC having already gotten the first rate cut out of the way.

US Dollar-Yen Loses Traction As Equities Decline
The prospect of the Federal Reserves first term auction for $20 billion didn’t seem to boost the risk sensitive USDJPY Monday morning. Not even the unexpected announcement from the ECB that they would offer unlimited funds below the market rate could revive traders’ taste for risk. In fact, the usually uncorrelated dollar-based pair actually joined its brethren by easing off resistance seen building around 113.50/75. From the economic calendar overnight, only the Tertiary Industry index for October was garnering interest. A 1.1 percent pick up in the service-based figure was only slightly below the market’s consensus for a rebound. The breakdown revealed that activity in retail, financial and software services were the leaders for the month.
Mixed Data Lends Little Help to Canadian, Australian and New Zealand Dollars
There was little buying interest in the comm bloc this morning as market participants shunned risk in the carry and mixed data added little value for fundamental traders. Early in the Asian session, the New Zealand calendar kicked things off with Performance of Services Index for November, which reported improvements in all its components, including sales, employment and new orders. The Australian dwelling starts figure for the third quarter matched its best reading since the first quarter of 2006, though there was no change to the housing component. Finally, the Canadian calendar was the most surprising. According to Stats Canada, net investment dropped a record C$24.3 billion. However, this disappointment was curbed somewhat when the outflow was seen through stocks and specifically through mergers.





Forex Trading News

Forex Research

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 here.

Forex News
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."

Actionable trading levels delivered to YOUR charts in real-time.

Register To Test Your Amazing Trader

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 10 Sep 2018
AA 08:30 GB- GDP, Trade, Output
Tue 11 Sep 2018
AA 08:30 GB- Employment Decision
A 09:00 DE- ZEW Survey
Wed 12 Sep 2018
A 12:30 US- PPI
A 14:30 US- EIA Crude
A 18:00 US- Beige Book
Thu 13 Sep 2018
A 1:30 AU- Employment
AA 11:00 GB- Bank of England Decision
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
AA 12:30 US- CPI
Fri 14 Sep 2018
A 08:30 GB- GDP
AA 12:30 US- Retail Sales
A 13:15 US- Industrial Production
AA 14:00 US- prelim University of Michigan

John M. Bland, MBA
co-founding Partner,

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube

Max McKegg's Daily Forex Trading Forecasts

Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.

Request a TRIAL of Max's Forex Service.


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Open Forum
Futures Forum
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Online Forex Trading
Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
Forex Products
GVI Forex
Free Trials
FX Bookstore
FX Jobs and Careers
Jobs USA
Jobs UK
Jobs Canada

Forex Forum

The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.

Forex News

The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.

Currency Trading

Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by

Forex Brokers

The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.

Forex Trading

Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.

FX Trading

Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.

Forex Blog also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.



By using this website, you are agreeing to our Privacy Policy and Terms of Use, and Cookie Policy

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105