User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday May 30, 2008 - 22:45:39 GMT

Share This Story:
| | Email

Forex Research - US Dollar Weighed Down By Slowing Spending, Watch for NFPs Next Week

• Euro Growth Comes Under Fire Just As ECB Decision Approaches
• Commodity Dollars: Canadian Economy Contracts For The First Time In Nearly Five Years

US Dollar Weighed Down By Slowing Spending, Watch for NFPs Next Week

The US dollar inched lower on Friday as US indicators only added to the pile of evidence suggesting that the economy is far from recovery mode. First, personal spending and personal income both slowed to a 0.2 percent pace during the month of April, indicating that consumption is not only weak, but will likely remain so through Q2. Indeed, record energy prices, a collapse in the housing sector, and a deteriorating labor market create a less-than-ideal environment for spending to recover. In fact, sentiment during the month of May was confirmed at a 28 year low of 59.8, according to the University of Michigan consumer confidence survey. It is not only the consumer side of the coin suffering though, as Chicago PMI held below 50 for the fourth consecutive month, signaling a contraction in business activity. A breakdown of the index shows a surge in the prices paid component, as rocketing commodity prices are undoubtly pushing input costs higher. Given the pick up we've seen in US CPI figures in recent months, it appears that businesses are passing these costs on to customers. Looking ahead to next week, the US dollar faces heavy event risk from the release of the ISM reports for the manufacturing (Monday) and services (Wednesday) sectors. However, Friday’s non-farm payrolls release should – as usual – prove to be the main event, especially as payrolls are expected to fall negative for the fifth consecutive month. Watch for our NFP Preview on Thursday in order to get a better sense of how the odds stack up ahead of the release, and if you should be watching for a surprisingly strong (dollar bullish) or weak  (dollar bearish) number.

Euro Growth Comes Under Fire Just As ECB Decision Approaches

After three straight days of hearty loses, the euro was finally able to regain its footing. However, the rebound was modest and more a result of position squaring rather than a fundamental change of trend. The economic offerings from the docket were a mixed bag for the liquid currency. For the bulls, the second teir and infrequently market moving Euro-Zone CPI estimate for May boosted hawkish sentiment ahead of next Thursday’s ECB rate decision. The outlook for price pressures in the consumer basket jumped more than economists had expected to a 3.6 percent clip – matching a sixteen year high. This isn’t too suprising considering the pass through energy prices and rising costs of lending. On the other side of the monetary policy coin however, was the more market-moving German retail sales report for April. Measuring consumer spending trends in the Euro Zone’s largest economy, this indicator is understandably a top mover. And, considering the surprise drop in consumption, it is no wonder the future hawkishness of the central bank is in doubt. Retail sales dropped 1.7 percent last month – marking the six time in the past eight months that spending has dropped. Interestingly enough, inflation was blamed for the drop in consumption – an interesting consideration for the ECB when they meet next week.

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

Commodity Dollars: Canadian Economy Contracts For The First Time In Nearly Five Years

The com bloc lost the support of its commodity correlation Friday as volatility for crude and gold settled. Instead, trading in the Canadian, Australian and New Zealand dollars were guided by active fundamental speculation. The loonie was arguably the most active currency among the three as traders received the growth numbers for March and the first quarter. Both readings would weigh on the Canadian dollar. Through March, the world’s 14th largest economy cooled 0.2 percent. Far more concerning though, the quarterly figure posted its first negative reading since 2003. Canada’s 0.3 percent clip of negative growth draws a notable contrast to the US’s as of yet positive readings. What’s more, the breakdown shows that the pressure on the economy is not just from the manufacturing sector’s troubles with unfavorable exchange rates and high input costs, but from trade and housing as well. For Australia, the Private Sector Credit report for April was a surprise fundamental driver. The 0.4 percent climb marked the smallest increase in borrowing in seven years – a reflection of high credit costs and perhaps fading consumer spending. No doubt, this will be a reading to consider next week when the RBA meets. There last report suggested they were considering a rate cut ealier this month. The RBNZ will likely raise similar concerns at their decision on Sunday.

Tell us what you think on the Canadian dollar Forum. 

British Pound: Bank of England Likely to Leave Rates Unchanged Next Week

The British pound experienced a choppy day of trading between 1.97 – 1.98, as GfK consumer confidence dropped to a more than 18-year low of -29 from -24. Conditions in the UK economy are increasingly looking like that of the US, especially givent the sharp slowdown in the UK housing sector. While this is surely of concern to the Bank of England’s Monetary Policy Committee, they are expected to leave rates steady next Thursday at 5.00 percent as rocketing inflation pressures prevent the them from focusing on tighter credit conditions and the collapse of the UK property markets. Since the MPC is anticipated to leave rates unchanged, they are unlikely to issue a monetary policy statement, which should leave the market’s reaction to the news very muted.

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

Fundamentals Add To Risk Pressures In Yen’s Retreat

Risk appetite settled through Friday as traders looked to square the books at the end of a busy week. However, fundamental yen traders would find no peace as economic indicators would take up the reins to the yen’s steady decline. Typically, Japanese data has little influence on price action; yet today’s offerings were too influential to ignore. The national inflation number retreated from its decade high after the expiration of a gasoline tax, curbing hawkish feelings. The outlook for growth was more concerning. Consumer spending fell the most in 19 months while industrial production marked consecutive contractions for the first time in four years. This leaves little hope for any BoJ hike.

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




Questions? Comments? You can email John or Terri about this or other articles they have authored at [email protected] or [email protected]

©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."

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

Tue 17 July 2018
AA 08:30 GB- Employment
A 13:15 US- Industrial Production
AA 14:00 US-Powell Testimony
Wed 18 July 2018
AA 08:30 GB- CPI
A 12:30 US- Housing Starts/Permits
AA 14:00 US-Powell Testimony
Thu 19 July 2018
AA 1:30 AU- Employment
AA 08:30 GB- Retail Sales
A 14:30 US- EIA Crude
A 12:30 US- Weekly Jobless
Fri 20 Jun 2018
A 12:30 CA- CPI/Retail Sales

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