User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday January 2, 2008 - 12:49:52 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Dollar dips in new year trade

Wed Jan 2, 2008 7:13am EST

(Changes byline, updates prices, adds quotes)

By Simon Falush

LONDON, Jan 2 (Reuters) - The dollar fell around a cent versus the euro on the first trading day of the new year with investors inclined to bet that coming U.S. economic news would be soft enough to merit more interest rate cuts.

Although U.S. existing home sales data on Monday was a bit better than expected, it did little to alter the downbeat view on the world's biggest economy cemented by the previous week's soft reports on new home sales and durable goods orders.

On the last trading day of 2007, U.S. short-term rate futures were pricing in as much as 96 percent probability of a Federal Reserve rate cut to 4.00 percent on Jan. 30.

That would bring the U.S. benchmark, currently 4.25 percent, into line with euro zone rates, completely erasing the dollar's yield advantage over the euro.

"We're continuing in the same vein in the new year as we ended the old, with the weak outlook for the U.S. economy and the risk of recession leading to dollar weakness," said Jeremy Stretch, strategist at Rabobank.

Market activity was expected to slowly pick up as investors return from Christmas and new year holidays although Japan and China remain on holiday until Friday.

By 1115 GMT, the euro was up 0.7 percent at $1.4688, after rallying more than 10 percent in 2007 <EUR=>.

Against a basket of major currencies .DXY, the dollar dipped 0.44 percent to 76.300, after posting its worst annual performance in four years in 2007 with losses of 8.4 percent.

The dollar was steady at 111.60 yen <JPY=>, while the euro added 0.6 percent to 163.85 yen <EURJPY=>.

The euro rose above 74 pence for the first time in since its 1999 launch <EURGBP=> as investors continued to expect cuts in UK interest rates.

Apart from worries about the U.S. and UK economies, investors appeared to start 2008 in a relatively positive mood, buying high-yielding currencies like the New Zealand dollar <NZD=> and potentially funding such trades with cheap borrowing in the low-yielding Japanese unit.


The U.S. Institute for Supply Management index for December is due at 1500 GMT. Forecasts are for a slight dip to 50.4, from 50.8 in November, but estimates range from 49.0 to 52.0. ECON

A move below the 50 mark would signal contraction in the sector. The index's employment component will also be closely watched for clues on the likely outcome of the non-farm payrolls data on Friday.

"If we see a (sub 50 reading on the employment component) today the market will probably have a bit more confidence in the consensus call for payrolls to rise just 70,000 on Friday after 94,000 in November," said Bear Stearns in a note to clients.

The market will also be interested in the minutes of the Federal Reserve's December policy meeting, when it decided to cut the funds rate by 25 basis points.

Thursday features figures on U.S. auto sales for December, a key barometer of consumer demand.

Traders were also keeping a wary eye on money markets to see if funding pressures had eased now that year-end had passed. Early signs were that interbank rates LIBOR had indeed dipped and risk spreads had narrowed somewhat, but analysts emphasised it was early days.

Both the Fed and the European Central Bank pumped huge amounts of cash into money markets ahead of year-end but much of that will have to be repaid in coming weeks.

(Editing by Ron Askew) (Reporting by Simon Falush)

© Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.


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 9 July 2018
AA 12:00 EZ- Draghi EU Parliament Testimony
Tue 10 July 2018
AA 08:30 GB- Ind/Prod Output, Trade
AA 09:00 DE- ZEW Survey
Wed 11 July 2018
A 12:30 US- PPI
A 14:00 CA- Bank Of Canada Decision
A 14:30 US- EIA Crude
Thu 12 July 2018
AA 12:30 US- CPI
Fri 13 July 2018
A 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