User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Saturday April 12, 2008 - 00:02:23 GMT
FXCM - www.dailyfx.com

Share This Story:
| | Email

Forex Research - Big Week Ahead for the US Dollar

Friday, 11 April 2008 22:05:44 GMT

Written by Kathy Lien, Chief Strategist

• British Pound Falls to a Record Low
• Breakout Expected in the Euro

 

** Kathy Lien will be a Featured Guest on Fox Business’ Opening Bell April 14 to 18; Tune in 9am to 10am ET!

Big Week Ahead for the US Dollar –

After a quiet start to the week, volatility has returned to the currency market. The moves that we have seen over the past 2 trading days are just a taste of what we expect for the week to come. With consumer spending, inflation, manufacturing and housing market data on the calendar, the EUR/USD is prime for a breakout. The US dollar has already weakened significantly today as trouble on Wall Street spills over to the corporate sector. For the first time in 5 years, General Electric reported a quarterly drop in profit. Their Financial Division was hit the hardest as the Bear Stearns debacle forced GE to write down its assets at very low values, resulting in a 42% increase in loss provisions. Frontier Airlines also became the fourth airline to file for bankruptcy this month. The 3 others were Aloha, ATA and Skybus. Although Frontier credited their bankruptcy to “an unexpected attempt by its principal credit card processor to substantially increase a holdback of customer receipts,” rising fuel prices have contributed substantially to the failure of these 4 airlines. This proves that those economists who say core prices is the only thing that matters are wrong because prices including food and energy is crippling the global economy. The weakness of the dollar was exacerbated by the sharp drop in consumer confidence. According to the University of Michigan, consumers have not been this pessimistic in 26 years. The problems in the US labor and housing markets combined with rising prices are becoming too much for the average American to handle. On Monday, we will see whether the rise in prices will offset the contraction in consumer spending. We believe that 3 months of net job losses will make it difficult for most Americans to be liberal with their spending. Retailers around the nation have been closing shops, Kimberly-Clark Corp has increased prices on everything from Huggies diapers to Cottonelle bath tissue and even Las Vegas casinos are reporting a decrease in gaming revenues. With this in mind, we continue to expect further dollar weakness, particularly against the Japanese Yen.

British Pound Falls to a Record Low -
The British pound dropped to a record low against the Euro as problems continue to plague the UK mortgage sector. Last month, I indicated that the British pound could fall below 2.0 if disaster hits UK mortgage lenders. Since then, the pound has traded lower and even though there has been no blowup, nearly every major UK mortgage lender has either increased their interest rates on mortgages or withdrawn from the mortgage market completely. Despite the Bank of England’s 25bp rate cut yesterday, UK mortgage lenders have not relaxed. In fact, Abbey National, the last remaining lender to offer 100 percent mortgages has pulled their products off the market. The Bank of Ireland has also completely withdrawn their mortgage products for eight days while they reassess the value of their home loans. Existing lenders are expected to continue to hike borrowing costs, making it even more difficult for the UK housing market to recover. Next to the US dollar, the British pound is the currency that we are most bearish. However, next week could bring some respite with inflation and employment reports due for release. Even though the economy is deteriorating, the employment components of the PMI reports suggest that the labor market could actually rebound.

Visit the British Pound Currency Room for resources dedicated specifically to the British Pound.

Breakout Expected in the Euro -
The Euro is consolidating within 100 pips of its high against the US dollar. For traders that like technicals, there is a clear ascending triangle forming in the EUR/USD which indicates that the currency pair is prime for a breakout. Wholesale prices in Germany were stronger than expected, confirming the ECB’s fears about inflationary pressures. In the week ahead, US data dominates the calendar with only the German IFO report, Eurozone consumer prices and producer prices due for release.

Visit the Euro Currency Room for resources dedicated specifically to the Euro.

Australian, New Zealand and Canadian Dollars Drop in Rising Risk Aversion -
Rising risk aversion and the 250 point drop in the Dow has driven the Australian, New Zealand and Canadian dollars lower against the greenback. New Zealand reported their REINZ house prices, which hit a 7 year low, as record high interest rates start to take a toll on the overall economy. Next week’s retail sales figures are also anticipated to drop, as personal savings grow. In contrast, New Zealand’s consumer prices and food prices should report cheery figures, as dairy prices remain high. With economic slowdown creeping into the picture, RBNZ officials show no remorse, as wage pressures continue to boost inflationary pressures. On the other hand, Australia did not have any releases, but yesterday’s unemployment report indicated that the once resilient economy is starting to weaken. Next week’s depressed home loan and investment lending releases will prove to investors that the housing sector is already in a slump. On the Canadian front, new housing prices grew at a slower pace than anticipated, as the housing market starts to mimic the US housing market. Next week’s CPI releases indicate that inflation is slowly approaching the 2% safety zone, but it should not be a concern for officials.

Tell us what you think on the Canadian dollar Forum.

Yen Crosses Rally Ahead of G7 -
After a week of relatively consistent losses, the Japanese Yen had an unexpected gain today on the unwinding of carry trades. If this trend should continue over the few trading sessions, there is potential for the Yen to end up near its support level of 95. With no economic news released, investors look forward to next week, with the G7 meeting and BoJ minutes due for release this weekend. This should set the tone for Monday’s trading session, along with providing investors vital information about the issues that are of main concern for officials.

Visit the Japanese Yen Currency Room for resources dedicated specifically to the Yen.

Daily_411_01

Daily_411_02



By Kathy Lien, Chief Strategist of DailyFX.com

Contact Kathy Lien about this article at klien@dailyfx.com






©2008 DailyFX. All Rights Reserved.

 

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."



Elevate Your Trading With The Amazing Trader!

The Amazing Trader includes:
  • Actionable trading levels delivered to YOUR charts in real-time.
  • Live trading strategy sessions.
  • Market Updates with Trading Tools.

Register To Test Your Amazing Trader


Trading Ideas for 23 October 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

Tue 24 Oct
All Day flash PMIs
Wed 25 Oct
01:30 AU- CPI
08:00 DE- IFO Survey
08:30 GB- GDP
14:00 CA- BOC Decision
14:30 US- EIA Crude
Thu 26 Oct
11:45 EZ- ECB Decision
12:30 US- Weekly Jobless
14:00 US- Pending Homes Sales
Fri 27 Oct
12:30 US- GDP
14:00 US- final Univ of Michigan

Forex Trading Outlook


Potential Trading Opportunities


  • POTENTIAL PRICE RISK: Medium Tue-- All Day Global flash PMIs. First good look at October economic performances.



  • POTENTIAL PRICE RISK: HIGH Wed-- 01:30 GMT AU- CPI. Top Inflation indicator.

  • POTENTIAL PRICE RISK: HIGH Wed-- 08:00 GMT DE- IFO Survey. Top German indicator.


  • POTENTIAL PRICE RISK: HIGH Wed-- 14:00 GMT CA- BOC Decision. No Policy Change Expected.


  • POTENTIAL PRICE RISK: Medium Wed-- 14:30 GMT US- EIA Crude. Top Weekly WTI Statistic.



John M. Bland, MBA
co-founding Partner, Global-View.com

EXCLUSIVE: Global-View Daily Trading Chart Points Updated

EXCLUSIVE: Global-View Free Forex Database updated




TRADER ADVOCACY ARTICLES

Trader's Advocate Articles..

pic

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 Global-View.com.

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

Global-View.com 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 Global-View.com. 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.

 

WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.

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