User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Thursday June 5, 2008 - 22:55:42 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Trichet rate hike signal sparks broad euro rally


Thu Jun 5, 2008 4:51pm EDT

(Recasts, updates prices, changes byline)

* Euro surges as Trichet flags July rate hike

* Dollar rises to three-month highs versus yen

* ECB, BoE leave rates unchanged as expected

By Lucia Mutikani

NEW YORK, June 5 (Reuters) - The euro surged on Thursday after European Central Bank President Jean-Claude Trichet signaled a July rate increase for the euro-zone, undercutting a recovery in the dollar that had started to gather steam.

Trichet's hawkish remarks, which were made following the ECB's expected decision to leave its main lending rate unchanged at 4 percent, pulled the euro from three-week troughs versus the dollar touched in overnight trade.

Comments by Philadelphia Federal Reserve President Charles Plosser that the U.S. central bank typically does not involve itself in currency intervention added to selling pressure on the dollar.

"Essentially we had a virtual rate hike today. For all intents and purposes it seems very much as if the ECB will tighten rates next month," said Shaun Osborne, chief currency strategist at TD Securities in Toronto.

"It looks as if the dollar is going to be under a bit of pressure. We have seen a massive turnaround in market positions today, people flipped from being long dollars back to the old position of being long euros."

The euro vaulted to a session high of $1.5601 <EUR=>, recovering from three-week lows of $1.5366 tested after data showed an unexpected fall in German manufacturing orders in April and building activity shrunk again in May.

In late New York trade, the euro was up 1.0 percent at $1.5590, notching its biggest daily gain in more than two months at current prices.

An ECB interest rate hike would enhance the allure of euro-zone assets and the currency, at the expense of the dollar, with the Federal Reserve only expected to start raising U.S. interest rates by the end of the year after an aggressive easing cycle.


The dollar had rallied in recent days after Fed Chairman Ben Bernanke sounded a rare warning that the weaker currency posed a risk to inflation.

Analysts said it now appeared that Bernanke's remarks were intended to cushion the dollar from unexpected events, such as Trichet's blunt rate comments.

"The market is speculating that part of the reason why Mr. Bernanke sounded more hawkish and talked up the dollar was to perhaps give the greenback a bit of a buffer against the expected hawkish comments from Mr. Trichet," said Omer Esiner, forex analyst at Ruesch International in Washington.

"There seems to be some kind of an understanding behind the scenes between the Fed and the ECB, which may have postponed the timing of an interest rate hike in Europe to next month in order to protect the dollar."

Against the yen, the euro jumped 1.7 percent to 165.21 yen <EURJPY=>, posting its largest daily rise in about two and a half months.

It climbed 0.9 percent versus sterling to 79.61 pence <EURGBP=> and leapt 1.2 percent against the Canadian dollar to 1.5866 <EURCAD=>.

Analysts said Bernanke's tough talk on inflation had seen traders wary of aggressively selling the dollar.

"There was an implicit threat that U.S. authorities could take action on the dollar if we were to see a significant slide in the dollar's value," said TD Securities' Osborne.

"So the market might be a bit reluctant to lean too hard on the dollar. If we get an appalling payrolls figure tomorrow it's going to quite tricky for the dollar."

The dollar rose to three-month highs against the yen of 106.42 <JPY=>, bolstered by perceptions that the U.S. economy was in much better shape than many initially thought after claims for jobless benefits posted their biggest drop in six weeks. May's non-farm payrolls report on Friday will be closely watched for a corroboration of that view.

The pound fell to a two-week low against the dollar at $1.9464 <GBP=> after the Halifax UK House Price Index fell more than expected in May. It rebounded to trade around $1.9583, up 0.2 percent.

The Bank of England kept rates unchanged at 5 percent, in line with market expectations. (Additional reporting by Gertrude Chavez-Dreyfuss; Editing by Leslie Adler)

© 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."

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 20 October 2017

Register for the Amazing Trader


Amazing Trader EVENT RISK Calendar:

Fri 20 Oct
12:30 CA- Retail Sales & CPI
14:00 US- Existing Homes Sales

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: High Fri-- 12:30 GMT CA- Retail Sales and CPI. Top economic indicators.

  • POTENTIAL PRICE RISK: HIGH Fri-- 14:00 GMT US- Existing Homes Sales. Top Housing statistic.

John M. Bland, MBA
co-founding Partner,

EXCLUSIVE: Global-View Daily Trading Chart Points Updated

EXCLUSIVE: Global-View Free Forex Database updated


Trader's Advocate Articles..


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.



Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105