FOREX NEWS-Tumbling oil price, upbeat US data lift dollar
Mon Aug 4, 2008 4:33pm EDT
* Dollar rises vs yen as oil plummets to 3-month low
* U.S. factory orders jump in June
* Investors await central bank meetings this week (Recasts, updates prices, changes byline)
By Lucia Mutikani
NEW YORK, Aug 4 (Reuters) - The dollar rose against the yen on Monday as the oil price's drop to a three-month low and some upbeat U.S. economic data generated optimism about the prospects of the broader economy.
But caution ahead of Tuesday's Federal Reserve meeting to decide on U.S. interest rates saw the dollar ease against the euro. Analysts said traders were adjusting positions after Friday's gains, which pushed the single currency to a five-week low against the dollar.
"There has been a tremendous movement in the oil price and that's pretty much the major story. The personal income and spending numbers were much stronger than expected, as well as the factory orders," said Andrew Busch, global foreign exchange strategist at BM0 Capital in Chicago.
"These will go into the computation of the second quarter GDP number," Busch said. "I am expecting that number to be revised up from 1.9 to somewhere in the territory of 2.5 percent due to these numbers."
Data last week showed that the U.S. economy expanded at an annual rate of 1.9 percent in the second quarter, up from 0.9 percent in the first three months of 2008. For details, see [nN31399964].
The dollar touched a session peak of 108.29 yen as U.S. light crude oil CLc1 fell as low as $119.50, the lowest level since early May, arresting a sharp decline in U.S. stocks.
In late New York trade, the dollar was last up 0.5 percent at 108.24 yen <JPY=>. Those gains saw the ICE Futures U.S. dollar index, which tracks the dollar's performance against a basket of six currencies, rise as high as 73.535 .DXY.
NEUTRAL FED STATEMENT EXPECTED
Government data showed stronger-than-expected consumer spending and personal income in June, as well as an unexpected surge in consumer prices. [ID:nN04423003]
That raised prospects of higher U.S. interest rates by the end of the year. But analysts generally expect the Fed to leave its benchmark overnight lending rate steady at 2 percent on Tuesday and deliver a neutral statement on future policy.
A separate report showed new orders at U.S. factories increased more than expected in June.
"We are going to see continued emphasis on the fragility of the financial markets," said Omer Esiner, currency strategist at Ruesch International in Washington.
"That will be balanced by a hawkish position with regard to inflation, but nothing above and beyond what we have already heard. I expect the Fed to sound a pretty neutral statement with regard to the outlook for monetary policy."
The euro was up 0.1 percent at $1.5584 <EUR=> in late New York trade after trading as high as $1.5631.
Analysts said euro/dollar would stick to narrow trading ranges before the Fed's decision on Tuesday and the European Central Bank meeting on Thursday.
While the U.S. central bank is expected to stress its continuing worry about inflation combined with a slowing economy, ECB President Jean-Claude Trichet's statement may focus on his rate-raisingbias. In July, the ECB raised rates by 25 basis points to 4.25 percent.
Traders will also await rate decisions from the Bank of England and the Reserve Bank of Australia this week.
The Aussie dollar <AUD=> was flat at US$0.9294 ahead of Tuesday's interest rate verdict by the Australian central bank. That bank's benchmark rate is 7.25 percent, and any cut would mark the country's first monetary loosening in seven years. (Additional reporting by Vivianne Rodrigues; Editing by Jonathan Oatis)
Thomson Reuters journalists are subject to an 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 19 Mar 2018 Tue 20 Mar 2018 AA 9:30 GB- CPI A 10:00 DE- ZEW Survey Wed 21 Mar 2018 AA 03:00 AU- Employment AA 9:30 GB- Employment A 12:30 US- Current Account AA 14:00 US- Existing Homes Sales A 14:30 US- EIA Crude A A18:00 US- Fed Rate Decision A 21:00 NZ- RBNZ Rate Decision Thu 22 Mar 2018 AA All Day flash PMIs AA 9:30 GB- Retail Sales AA 12:00 GB- Bank Of England Decision A 13:30 US- Weekly Jobless Fri 23 Mar 2018 AA 12:30 CA- CPI/Retail Sales A 12:30 US- Durable Goods A 14:00 US- New Homes Sales
John M. Bland, MBA co-founding Partner, Global-View.com
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.