User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday April 21, 2008 - 21:56:36 GMT
FXCM - www.dailyfx.com

Share This Story:
| | Email

Euro: Taking Another Stab at 1.60

Monday, 21 April 2008 21:18:03 GMT

Written by Kathy Lien, Chief Strategist

• US Dollar: Giving Back Gains
• Bank of Canada Expected to Cut Rates by 50bp

Euro: Taking Another Stab at 1.60

The fourth time may be the charm for the Euro which is once again trying to rise above 1.60.  There was no major Eurozone economic data released this morning, but rising inflationary pressures has sparked speculation that the next move by the European Central Bank may be a rate hike instead of a rate cut.  Even though economic data has been slowly deteriorating, the fact that price growth is well above the ECB’s target level is making the central bank increasingly uncomfortable.  ECB member Liikanen reminded the markets this morning that Eurozone inflation risks are real but despite comments such as these, a rate hike from the ECB is very unlikely.  We are already beginning to see consumer spending slow and there are rumors that the big moves in LIBOR rates suggest that European banks are underreporting their losses.  Therefore the ECB may not want to risk tipping over their own economy by raising interest rates.  Wednesday’s PMI numbers will shed more light on how well the Eurozone economy has been holding up.  The tightening ranges of the EUR/USD reflect indecision and the market’s uncertainty about whether the next big surprise will come from the Eurozone or the US economy.  Meanwhile the Swiss franc is up sharply today following stronger than expected inflation numbers.  Producer prices grew 0.6 percent last month, which was double the market’ expectations, driving the Swiss franc to a 17 year high against the Japanese Yen.  The market’s interpretation of Swiss economic is better seen CHF/JPY these days than EUR/CHF because EUR/CHF has become a carry trade currency. 

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

US Dollar:  Giving Back Gains

With no US economic data released today, the greenback has given back a portion of Friday’s gains.  Bank of America, the nation’s second largest bank became the latest victim of subprime related losses.  They reported a 77 percent drop in net income as provisions for credit losses hit $6 billion.  In order to raise capital, the Bank has been forced to sell part of their highly lucrative stake in China’s Construction Bank.  In 2005, they invested $3 billion into the bank and now that investment is worth $16 billion. The plethora of bad news from the US financial sector has weighed on US stocks as well as the US dollar.  Activity should pick up tomorrow with existing home sales due for release.  Mortgage applications have been rebounding, which suggests that home sales could improve as well, but house prices may continue to be the Achilles heel for real estate.  Watch out for more job cuts by Bank of America, which will exacerbate what should be a quickly deteriorating labor market. 

Australia Reports Strong Inflation, Bank of Canada Expected to Cut Rates by 50bp

On the back of strong economic data, the Australian dollar gained ground against the greenback, taking the New Zealand dollar up with it.  Australia’s PPI figures came in much hotter than expected, as it grew at the fastest pace in almost a decade. This phenomenal increase, attributed to the recent global rise in commodity prices, has resulted in increasing speculation of a rise in CPI figures expected to release midweek, as consumers bear the brunt of rising input prices. This could be a cause of concern for the RBA, as hiking interest rate in the future to deal with inflation is not a viable option, but rise in inflation could delay any notion of slashing rates in the near future. On the other hand, New Zealand’s Visitors Arrival figures, reported in the negative territory, implying that the once robust economy is set to face a slowdown, thus raising speculations that RBNZ would have to cut interest rates to deal with the situation. Canada reported their International Securities Transactions figures which rose at the fastest pace since 2007.  This along with record oil prices drove the Canadian dollar higher despite the possibility of a 50bp rate by the Bank of Canada tomorrow.   Spillover effects from the US economy have analysts calling for a back to back half point rate cut. 

Tell us what you think on the Canadian dollar Forum.

British Pound Sells Off Following Bank of England Announcement

The Bank of England announced today that they plan on swapping GBP50 billion worth of UK bonds for mortgage securities in an effort to add liquidity to the lending market.  For a long time, the Bank of England has refused to follow in the Fed’s footsteps because they did not want to foster an environment where banks and financial institutions would start relying on central bank bailouts. Their laissez-faire attitude received significant criticism, causing the central Bank of England to finally buckle under the weight on political and economic pressure.  Taking a page out of the Fed’s book, they have swapped their safe and secure UK gilts for slightly riskier mortgage backed securities.  The market has not taken this move positively as the British pound is down over 200 pips from its high.

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

Listless Trading in the Japanese Yen

The Japanese Yen made a comeback today against the US dollar, as investors continued to unwind their carry trade positions. Japan’s Tertiary Industry Index fell more than expected, with major spending declines in the real estate sector, followed by deterioration in the financial and insurance sectors. In contrast, Japan’s leading Economic Index and Coincident Index figures came in strong, for the first time in seven months, leaving investors feeling hopeful about a revival in the near future. In spite of figures indicating growth, Japanese government officials cut its regional economic assessment for the first time in six years, due to weak corporate activity, indicated by declining business sentiment and capital investment. Looking ahead, Merchandise Trade balance figures are expected to increase due to strong demand for exports and also Consumer Price data.

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

Daily1_4-21

Daily2_4-21




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