User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday June 2, 2008 - 20:56:37 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Yen rallies as S&P cuts US financial firms ratings

Mon Jun 2, 2008 4:05pm EDT

(Recasts; updates prices, changes byline)

* Yen, Swiss franc rallies as risk aversion rises

* S&P cuts ratings of three major U.S. securities firms

* A British lender warns on UK mortgage market

* U.S. ISM index higher-than-forecast in May

By Lucia Mutikani

NEW YORK, June 2 (Reuters) - The yen surged on Monday after Standard & Poor's cut ratings on three big U.S. securities firms and a British lender gave a grim assessment of the UK mortgage market, igniting fears of more pain from the global credit crisis.

The market saw investors bailing out of risky trades, positioning the yen for its largest daily gain against the U.S. dollar in nine weeks, while sterling fell across the board.

Standard & Poor's downgraded ratings on Lehman Brothers Inc (LEH.N: Quote, Profile, Research), Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research) and Morgan Stanley (MS.N: Quote, Profile, Research) and said the outlooks on the large financial institutions sector were now predominantly negative. For more, see [ID:nN02286902]

Bradford & Bingley (BB.L: Quote, Profile, Research) earlier painted a bleak picture of the UK mortgage market, saying the risk of customers defaulting on loans was rising faster than expected as it slashed the price of its emergency rights issue to secure a private equity lifeline, hitting European bank shares.

"Risk aversion is back. The fear of consumer bankruptcies and much bigger problems in the financial sector in the highly leveraged economies like the U.S. and the UK are weighing on carry trades," said Boris Schlossberg, senior currency strategist at in New York.

"That's the theme dominating trade right now. You have seen the yen and the Swissie strengthen," he added.

Low-yielding currencies such as the yen and Swiss franc tend to attract flows during periods of uncertainty as the low interest rates reflect capital surpluses in their respective countries.

The dollar dropped as low as 104.03 yen <JPY=> and was last trading at 104.47 yen, down 1.0 percent on the day, and on pace to post its largest one-day fall since March 26. Against the Swiss franc, the dollar fell 0.5 percent to 1.0370 <CHF=>.

The euro tumbled 1.1 percent to 162.28 yen <EURJPY=>, its sharpest daily fall in about 10 weeks at current prices. It declined 0.7 percent to 1.6108 Swiss francs <EURCHF=>.


Investors' appetite for risk was also dampened by sharp declines on both European and U.S. stock markets, causing them to unwind carry trades that are funded by borrowing in the low-yielding Japanese yen.

Losses on Wall Street were also worsened by news of management changes at Wachovia Corp (WB.N: Quote, Profile, Research) and Washington Mutual (WM.N: Quote, Profile, Research).

"We've seen the yen gain and this is a continuation of the trend we saw overnight in terms of the renewed level of risk aversion that was sparked by the disappointing news out of the UK mortgage market," said Joe Manimbo, currency trader at Ruesch International in Washington.

Sterling fell 0.8 percent to $1.9653, hitting one-week lows of $1.9597 <GBP=> after the UK mortgage news and poor PMI data showed a stagnant manufacturing sector. The euro gained against sterling, rising 0.7 percent, to 79.01 pence <EURGBP=>.

However, a report showing that euro zone manufacturing activity hit its lowest level in almost three years, hurt the euro. The euro zone's Purchasing Managers' Index of manufacturing in May slipped to 50.6, its lowest reading since August 2005. [ID:nL27558837]

The euro last traded down 0.1 percent at $1.5534 <EUR=>, after briefly climbing to a session high of $1.5589.

Rising prospects of the Federal Reserve raising interest rates by year-end from the current 2 percent to deal with inflation have helped the dollar to keep some edge against the euro. The euro has retreated some 3 percent from a record high of $1.6018 hit in April.

With some economic data exceeding market expectations, analyst reckon there is a chance that the U.S. economy has probably avoided a recession, helping to keep the dollar supported versus the high yielding currencies.

Concerns that the housing downturn could spillover to the rest of the economy prompted the Fed to aggressively cut its benchmark overnight lending rate by 3.25 percentage points since mid-September.

Federal Reserve Bank of Atlanta President Dennis Lockhart, who is not a voting member, said on Monday the U.S. economy was poised for gradual recovery and would duck a severe slowdown.

"The data coming in has us now believing that although housing and attendant industries are in veritable depressions, the rest of the economy is just plugging along at a materially slower rate, but not a recessionary one," independent investor Dennis Gartman wrote in a note.

Data on Monday showed the Institute for Supply Management's index of national factory activity rose to 49.6 in May from 48.6 in April. For details, see [ID:nN02255089] (Additional reporting by Gertrude Chavez-Dreyfuss; editing by Gary Crosse)

© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.


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 23 July 2018
A 14:00 US- Existing Homes Sales
Tue 24 July 2018
AFlash PMIs
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 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