User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday January 21, 2008 - 21:36:10 GMT
Reuters -

Share This Story:
| | Email

Forex News -Yen rallies as global stocks rout squeezes carry

Mon Jan 21, 2008 10:21am EST

By Jamie McGeever

LONDON (Reuters) - The Japanese yen strengthened broadly on Monday, hitting a two-and-a-half year peak versus the dollar as a rout in global stocks prompted investors to sharply reduce their exposure to risky, higher-yielding assets.

This meant the low-yielding yen, which many investors had used to fund purchases of currencies offering higher returns in so-called carry trades, bounced strongly against major units.

The selloff in stocks was broad and deep, with major European and Asian markets down as much as 6 percent. Investors rushed for the safest and most liquid assets they could find, such as government bonds, which pushed two-year euro zone bond yields down more than 10 basis points on the day and well on track for the steepest monthly decline in over a decade.

The moves were fuelled by worries that the fiscal stimulus package worth up to $150 billion floated by President George W. Bush on Friday will not be enough to shore up a U.S. economy that is feared to be either close to, or already in recession.

"Equity markets have collapsed by over 5 percent in Asia and European equities are now following with even steeper falls in some cases. The disastrous equity and credit market performance provides clear evidence of the fast erosion of risk appetite, with the carry trade now being severely squeezed," BNP currency strategists wrote in a note on Monday.

"With recession fears in the U.S. rising and little confidence in the Bush Administration's fiscal plans, together with the continued broadening of subprime related losses we see little scope for stabilization in higher risk asset classes."

At 10:10 a.m. EST the dollar was down 0.7 percent on the day against the yen at 106.00 yen, having hit 105.69 yen earlier, a level last seen in May 2005.

The euro shed 1.5 percent to 153.66 yen, having dipped below 153 yen earlier for the first time in five months.


The dollar climbed 0.6 percent against a basket of currencies to 76.87 .DXY, thanks more to the broad weakness of most other currencies rather than investors' appetite to hold the greenback itself.

"In our view, the balance of negative economic surprises will shift away from the U.S. and re-coupling will increasingly become the main macro theme of the year," said Dresdner Kleinwort in a client note.

Futures markets are betting on the Federal Reserve slashing U.S. interest rates this year to 2.50 percent or lower, including as much as a 75 basis point cut at the bank's policy meeting next week.

This aggressive pricing has now spilled over into European markets, where rates futures are now discounting more than 50 basis points of easing from the European Central Bank this year compared with expectations at the start of the month of the bank staying on hold at 4 percent all year.

The euro fell 0.8 percent on Monday to $1.4490, slipping below $1.45 for the first time in almost a month.

The euro's lurch lower -- Citigroup opened a short euro/dollar position on Monday -- helped push up option market volatility.

Implied volatility on one-month euro/dollar options contracts, a key measure of expected price swings in the euro's exchange rate against the dollar, rose on Monday above 10 percent for the first time in three years.

Implied volatility is the price fluctuation in an underlying asset that the options market expects over a given timeframe.

Monday's choppy moves were on thinner volumes than usual, with U.S. markets closed for the Martin Luther King Jr holiday.

(Editing by Stephen Nisbet)

© 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 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