User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Thursday August 7, 2008 - 20:08:36 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Dollar gains on strong housing data, ECB rate view

Thu Aug 7, 2008 4:04pm EDT

(Recasts, updates prices, changes byline)

* Housing data helps boost the dollar

* Euro falls as ECB's Trichet highlights risk to growth

* Dollar index hits highest level in 5-1/2 months

By Vivianne Rodrigues

NEW YORK, Aug 7 (Reuters) - The U.S. dollar rose broadly and hit a 5-1/2-month high against a basket of currencies on Thursday, bolstered by a surprise rise in June home sales and diminished expectations for euro zone interest rate increases.

The gain in pending home sales offset a bleak U.S. jobless claims report, supporting a growing view that the current housing slowdown may be nearing a bottom. The data backed expectations of U.S. rate hikes this year, which has fueled a rebound in the dollar over the past two weeks.

In contrast, European Central Bank President Jean-Claude Trichet, in remarks after the bank held rates at 4.25 percent, said he expects economic growth in the euro zone to weaken substantially this year, even as he sees inflation remaining above the ECB's target. For more details, see [ID:nL7650401]

Following his comments, investors unwound bets for ECB interest rate increases this year, limiting the euro's appeal to global investors.

Nick Bennenbroek, head of foreign exchange strategy, at Wells Fargo in New York, said the kneejerk reaction to Trichet's comments was to buy the dollar and sell the euro, although he believed the ECB chief's statements were balanced.

"Overall, today's price action reflects the market's bias toward buying the dollar. There is a general perception that weakness across other international economies are more pronounced than it was earlier this year, prompting investors to sell foreign currencies and buy the dollar."

The dollar index on the ICE futures exchange rose to as high as 74.604 .DXY, the highest since late February. It was last up 0.3 percent at 74.509.

The euro <EUR=> fell to a seven-week low at $1.5333, down 0.5 percent from late on Wednesday. The dollar rose 0.2 percent against the Swiss franc to 1.0621 francs <CHF=>.


Data showed on Thursday that U.S. home sales contracts signed in June rose to their highest level since October. For details, see [ID:nN07290813]

"This is the second upside surprise in three months, so it is hard to ignore. Anything which reduces inventory, whether of foreclosed homes or not, is a very welcome development," said Ian Shepherdson, chief U.S. economist at High Frequency Economics, at Valhalla, New York.

"It does not fix the housing market, though, but it might be the beginning of the end of the crash," he said.

The pending home sales data outweighed a report earlier in the session showing the number of U.S. workers filing new claims for jobless benefits rose 7,000 last week to a more than six-year high.

The jobless claims' impact was most evident in the dollar's price action against the yen. The dollar fell 0.3 percent to 109.37 yen <JPY=>, as investors also took profits on the greenback's recent gains.

"The initial claims number was pretty ugly," said Ronald Simpson, managing director of global currency analysis at Action Economics, in Tampa, Florida. "For now, that's going to limit the upside for the dollar."

Further pressuring the dollar was an increase in crude oil prices by more than 1.0 percent to $119.94 per barrel CLc1, after falling to a three-month low on Wednesday.

U.S. stocks were also lower, with investors disappointed by insurer American International Group Inc's (AIG.N: Quote, Profile, Research, Stock Buzz) third straight quarterly loss and weaker-than-expected same-store sales in July at Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz), the world's largest retailer.

"There are still some near-term concern over the economy," added Simpson. "Some of the retail sales numbers that came in today were worse than expected."

Most analysts now expect the dollar to gain in the second half of the year, as the credit crunch showed increasing signs of spreading to the euro zone, Japan, Australia and other major economies.

On the other hand, the United States, the first major casualty of the nearly year-old credit crisis, has garnered support from the decline in oil prices after they hit record highs last month and a generally steady run of U.S. economic data.

Elsewhere, sterling fell to an eight-week low versus the dollar as the Bank of England held rates steady at 5.0 percent as expected. with policy-makers trying to balance slowing growth and rising inflation. Sterling was last down 0.2 percent at $1.9434 <GBP=>. (Additional reporting by Gertrude Chavez-Dreyfuss and Wanfeng Zhou in New York; Editing by Gary Crosse)

© 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.


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