Forex News Blog
Back to The Headlines
Thursday January 24, 2008 - 22:21:34 GMT
Share This Story
FXCM - www.dailyfx.com
Forex Research - Currencies Continue to React to Fed's Emergency Rate Cut
Thursday, 24 January 2008 20:55:36 GMT
Written by Kathy Lien and David Song, DailyFX.com
The USD continued to take a hit as the unexpected rate cut by the Fed led to a big gain for commodity currencies, and rallied speculation that the depreciating currency will continue to fall for the sixth consecutive year. Most of the major currency counterparts gained in today‚Äôs trading session as the Euro hit $1.47, and the Sterling climbing to $1.97. The USD/CAD pair reflected the biggest depreciation as investors took advantage of the spread in interest rates, and fell to C$1.0094 from C$1.0241 yesterday, which was the largest one-day gain for the Canadian dollar since November.
The newly released economic indicator by the Labor Department reflected a slowdown in the rate of unemployment, but did not help to move the market as sales of existing homes fell to a nine year low. As the US continues to falter in the global economy, commodities soaked in gains as crude oil rebounded from a three month low and was just shy of $89 a barrel. Gold prices also jumped as it hit over $900 an ounce as investors sought an alternative investment to the depreciating currency.
Volatile trading continued in the securities market as the DJIA and the S&P500 had a second consecutive intraday reversal in today‚Äôs session, with the Dow climbing 107 points and the S&P gaining 13 points by the end of the trading session. The reversal was led my Microsoft, who is expected to release an upbeat statement on their earnings, and Xerox Corp., Lockheed Martin Corp. and Union Pacific Corp. also led the market as their earnings report beat market expectations.
Treasuries prices were sent downhill for the second day as the securities markets advanced, and lifted the 10- year yield to 3.636 percent and the 30-year yield to 4.354 percent. The huge rate cut and the newly introduced rebate by the Bush administration is also seen to have a negative effect on treasuries as profit driven investors reallocated their assets into higher risk assets. However, the $7.1B fraud involving Societe Generale sparked risk adverse investors to move into the safe haven of risk-free bonds as prices were falling.
Forex Trading News
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
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
Mon 23 July 2018
AA: Major, A: High, B: Medium
A 14:00 US- Existing Homes Sales
Tue 24 July 2018
Wed 25 July 2018
A 08:00 DE- IFO Survey
A 14:00 US- New Homes Sales
A 14:30 US- EIA Crude
Thu 26 July 2018
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
A 12:30 US- Durable Goods
Fri 27 July 2018
AA 12:30 US- GDP
A 14:00 US- Final University of Michigan
John M. Bland, MBA
co-founding Partner, Global-View.com
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.
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.