FOREX NEWS-Dollar rises, helped by a drop in oil prices
Thu Jun 19, 2008 3:57pm EDT
* Dollar up as crude futures tumble sharply
* China to raise gasoline and diesel prices
* Sterling buoyed by shock jump in UK retail sales
(Adds comments, updates prices, changes byline)
By Vivianne Rodrigues
NEW YORK, June 19 (Reuters) - The dollar rose versus the euro on Thursday, helped by a sharp drop in crude oil prices and a surge in British retail sales that caused traders to offload the European single currency to buy sterling.
May's surprise jump in retail sales raised expectations the Bank of England will raise interest rates, helping to drive the pound to its highest level in over a week against the dollar and spark a rally versus the euro.
"The euro came under a lot of pressure today with investors selling the currency to buy back sterling," said Joe Manimbo, a currency trader at Ruesch International in Washington. "That combined with the sharp drop in oil prices, ended up giving the dollar a boost."
The euro fell as low as $1.5467 <EUR=> in overnight trade. It recovered some losses as data showed factory activity in the U.S. Mid-Atlantic region slowed further in June. For details, see [ID:N19444932].
In late afternoon trading in New York it was down 0.2 percent on the day at $1.5497. The New York Board of Trade's dollar index, which charts the dollar's performance against a basket of six currencies, rose to a session high of 73.594 .DXY. It last traded at 73.482.
Sterling rallied to an intraday peak of $1.9744 <GBP=>. It was up 0.7 percent at $1.9724. The pound also climbed against the euro, pushing the single currency down 0.9 percent to 78.52 pence <EURGBP=>.
"The UK news has sent sterling higher, driving the sterling crosses. That's one of the major undercurrents today. Oil is down, that is also dollar positive," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.
"We are still within recent ranges. The dollar is not out of the woods yet."
While the Federal Reserve had turned hawkish due to rising price pressures ignited by record oil prices, analysts believe it is unlikely to raise U.S. interest rates before year-end as the economy remains sickly.
U.S. crude futures tumbled sharply after news that China will raise gasoline and diesel prices. For details, see [ID:nN19403927]. High oil prices have fanned inflation pressures and concerns about their impact on global growth.
A Swiss National Bank decision to leave interest rates unchanged despite inflation at multiyear highs had some psychological effect on the market, but analysts cautioned against reading too much into the move.
There had been suggestions that the Swiss bank's decision could mean the European Central Bank would not tighten policy further after an anticipated rate increase in July.
"While the SNB does not adhere to the inflation-targeting framework of the ECB, both central banks view price stability as being consistent with CPI being below 2.0 percent per annum," said Bank of America in a note.
"Our economists still believe that the SNB's next move will be up, and there is a strong chance that the move could materialize in September."
Against the Swiss franc, the dollar rose 0.9 percent to 1.0459 francs, reversing earlier losses ahead of the SNB decision <CHF=>. The franc also fell 0.7 percent versus the euro to 1.6208 <EURCHF=>. (Additional reporting by Lucia Mutikani; Editing by Richard Satran)
Thomson Reuters journalists are subject to the Editorial Handbook which requires fair presentation and disclosure of relevant interests.
Forex Trading News
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
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.
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.com
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.
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.
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.
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.
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 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 Global-View.com.
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 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.
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.
Global-View.com 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 Global-View.com. 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.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.