User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday June 4, 2008 - 20:45:21 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Dollar up broadly as Bernanke cements Fed pause view

Wed Jun 4, 2008 4:35pm EDT

(Recasts, updates prices, changes byline)

* Dollar rises as Bernanke warns on inflation expectations

* Surprisingly upbeat economic data also lifts dollar

* Bernanke's remarks and data bolster Fed pause views

By Lucia Mutikani

NEW YORK, June 4 (Reuters) - The dollar rose on Wednesday after Federal Reserve chief Ben Bernanke highlighted growing inflation expectations as a "significant concern," yet another sign the central bank was likely done cutting interest rates.

Perceptions that the Fed could even tighten monetary policy later this year, after an aggressive rate-cutting campaign, were also hardened by unexpectedly strong economic data that suggested the United States would probably avoid a recession.

Steady or higher interest rates would help stem the erosion of the dollar's appeal to global investors.

"Bernanke's comments suggested that he's going to be far less accommodative when it comes to interest rates," said John McCarthy, director of foreign exchange at ING Capital Markets in New York.

"This is dollar-supportive because that means that interest rate differentials shouldn't fall as much."

The New York Board of Trade's dollar index, which tracks the dollar's performance against a basket of currencies, climbed to a session high of 73.517 .DXY, up 0.2 percent on the day.

Bernanke's latest remarks came on the heels of a rare warning on Tuesday that a weak dollar posed a risk of inflation.

"Interest rates are on hold in the United States, but there is a risk they could move higher depending upon incoming data," said Michael Woolfolk, senior currency strategist at Bank of New York Mellon.

"Bernanke and the Fed are concerned about rising inflation expectations, and once the financial markets crisis subsides further, they will be in a position to raise interest rates along with the European Central Bank."


Aggressive interest rate cuts by the Fed, aimed at heading off a recession, have undermined the dollar by reducing the appeal of assets denominated in the currency due to lower yields. Since September, the federal funds rate target has been slashed by 3.25 percentage points to 2 percent.

The euro dipped 0.1 percent to $1.5431 <EUR=>, but caution ahead of Thursday's ECB policy meeting saw traders reluctant to aggressively sell the European single currency.

The ECB is expected to leave its main lending rate unchanged at 4 percent, but President Jean-Claude Trichet's comments will be closely watched for indications of when the central bank might start moving on interest rates.

"Trichet has sounded very hawkish, so has (ECB Governing Council member Axel) Weber, recently. If they signal an imminent rate rise, which is not completely out of the question, that would be very favorable for the euro," said Woolfolk.

"That said, data out of Europe has disappointed, including the UK. The dollar is positioned to rally further, there is no question, once we get past the event risk of the two central bank meetings tomorrow."

The Bank of England is also due to meet on interest rates on Thursday. It is widely expected to keep rates steady at 5 percent. On Wednesday, sterling traded down 0.5 percent at 1.9542 <GBP=>.

Against the yen <JPY=>, the dollar rose 0.1 percent to 105.23 yen, brushing off a fall in U.S. stocks on a combination of fears of more credit-related losses and worries there would be no further cuts from the Fed.

Concerns about the credit crisis remained in the forefront as Moody's Investors Service said it would likely cut the credit ratings of the bond insurance arms of MBIA Inc (MBI.N: Quote, Profile, Research) and Ambac Financial Group (ABK.N: Quote, Profile, Research).

"We are still in a panic mode with these financials," said Joe Francomano, vice president for foreign exchange at Erste Bank in New York. "We are still in a credit crunch, but the reason we're not as down as before is that the Fed is more involved."

Wednesday's economic data showed the service sector and private employment posting surprising gains in May. For details, see [ID:nN04466345] (Additional reporting by Gertrude Chavez Dreyfuss; Editing by Jonathan Oatis)

© 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 10 Sep 2018
AA 08:30 GB- GDP, Trade, Output
Tue 11 Sep 2018
AA 08:30 GB- Employment Decision
A 09:00 DE- ZEW Survey
Wed 12 Sep 2018
A 12:30 US- PPI
A 14:30 US- EIA Crude
A 18:00 US- Beige Book
Thu 13 Sep 2018
A 1:30 AU- Employment
AA 11:00 GB- Bank of England Decision
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
AA 12:30 US- CPI
Fri 14 Sep 2018
A 08:30 GB- GDP
AA 12:30 US- Retail Sales
A 13:15 US- Industrial Production
AA 14:00 US- prelim 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