User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday June 2, 2008 - 23:42:35 GMT

Share This Story:
| | Email

Forex Research - US Dollar Finds Volatility With Manufacturing Survey, Safe Haven Flows

• Euro Strength Is Hurting Manufacturers, But Don’t Expect A ECB Rate Cut This Week
• British Pound: Will The Next Credit Crunch Be Triggered By The UK?

US Dollar Finds Volatility With Manufacturing Survey, Safe Haven Flows

There is a considerable amount of event risk on the global economic calendar this week; but the US dollar is looking to only a few heavy-hitting fundamental releases for price action. The first of these major market movers was this morning’s ISM manufacturing survey. In the recent past, this indicator had actually beat out the non-farm payrolls release for generating volatility. However, this was not the case for the May reading. The manufacturing activity gauge beat the market’s forecast for a slight contraction by jumping a whole percentage point to 49.6. However, the bullish sentiment this indicator would generate was naturally limited by the fact that the sector contracted for the fourth consecutive month (implied by a reading below 50.0). The indicator’s components further revealed that the month-over-month improvement was based largely in exports, which hit a four year high, thanks to the weakness of the US dollar. In contrast, new orders fell for a sixth consecutive month while employment contracted for a seventh straight month. Outside of the economic docket, the dollar was also seeing its safe haven status bolstered. Speculation that another UK bank may be on the brink of bankruptcy and a round of downgrades for a number of major investment banks’ debt lead many investors back to the stalwart dollar and Treasuries.

Euro Strength Is Hurting Manufacturers, But Don’t Expect A ECB Rate Cut This Week
The euro consolidated between 1.55 – 1.56 on Monday, closing little changed from Friday’s New York close, as Euro-zone data pointed to an economic slowdown, while comments from an event to mark the ECB’s 10th anniversary reiterated the Bank’s hawkish tone. First, the final reading of the purchasing managers’ index for the Euro-zone manufacturing sector slipped to 50.6 in May from 50.7 in April. Indeed, sentiment amongst European businesses, especially producers, has suffered as record high commodity prices are squeezing profit margins while the euro's appreciation hurts foreign demand for exports. On the other hand, multiple ECB policy makers continue harp on inflation pressures, as ECB President Trichet noted that “price stability is a prerequisite for financial stability” while ECB Governing Council Member Klaus Liebscher said "we will do everything needed for inflation to recede again." It is rather clear that the ECB has no room to cut rates in the current price environment, and as a result, the Bank will have to ignore signs of an economic slowdown in order to focus on maintaining price stability. While this leaves the odds vastly in favor of the ECB maintaining neutral policy on Thursday, traders should keep an eye on Tuesday’s Q1 GDP release for the Euro-zone, as any revisions will spark significant volatility in the euro.

British Pound: Will The Next Credit Crunch Be Triggered By The UK?
The British pound gapped lower at the start of trading this week to tumble toward support at 1.96, as conditions in the UK deteriorate further. From an economic perspective, the UK housing and manufacturing sectors are taking a heavy hit, as BOE mortgage approvals slumped to 58,000 in April – the lowest since record keeping began in 1999 – while the manufacturing purchasing managers’ index for the UK tumbled to a reading of 50 from 51, indicating that growth in the sector has stalled. Perhaps the most daunting piece of news was an announcement from Bradford & Bingley, the UK's largest lender to landlords. B&B appears to be in trouble financially, as they said they would sell shares at a 33 percent discount amidst deteriorating housing market conditions. The news led Fitch Ratings to cut its long-term default rating and placed the firm on “watch negative,” and while B&B’s Chairman has affirmed that the company remains “well capitalized,” it is obvious that the UK financial markets are far from stable. The BOE has already stated that there are significant risks associated with mortgage-backed securities in the UK, particularly commercial ones, and if property values continue to plummet as they have in the US, the global credit markets may be hit by yet another wave of severe tightening

Commodity Dollars: A Concentrated Docket Promises Serious Volatility For The Aussie Dollar
There was little consistency across the commodity bloc Monday as risk sentiment and scheduled event risk took the reins on price action from the relatively inactive futures market. However, the group’s correlation to commodities wasn’t totally overlooked by the market as the recent pullback in crude prices allowed USDCAD bulls to bring the pair back above parity through the early hours of the US session. This notable move aside though, the Australian currency was the undisputed leader for activity thanks to an extremely concentrated economic calendar that is almost guaranteed to stoke volatility over the next 48 hours. The fundamental waves began as a swell this morning with a list of top tier indicators. Among the numbers, the retail sales report’s unexpected 0.2 percent contraction was of primary concern – especially with first quarter GDP due tomorrow evening. However, the negative sentiment this indicator would lend the currency (along with a disappointing manufacturing survey) was ultimately offset by a better than expected TD inflation figure and first quarter company profit report. The greatest probability for price action however likely rests with the RBA’s rate decision and comments due in just a few hours. 

Japanese Yen Surges As Risk Aversion Rears Its Head
A return to risk aversion rippled through the markets on Monday, leading the Japanese yen to surge almost 1 percent across most of the majors. Indeed, conditions were indicative of market-wide flight-to-safety, as the CBOE Volatility Index (VIX) saw its biggest single-day gain since March, the DJIA and S&P 500 both fell more than 1 percent, and US Treasuries rocketed higher. On the other hand, Japanese economic data reflected further slowing in wage growth, as labor cash earnings rose a tepid 0.6 percent in April from a year earlier, down from 1.5 percent the month prior. Clearly, risk trends remain the primary driver of the Japanese yen and as a result, traders should perhaps keep an closer eye on broad market conditions rather than economic data specifically.

Written by: John Kicklighter and Terri Belkas, Currency Analysts for




Questions? Comments? You can contact John or Terri about this or other articles they have written 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