User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday September 3, 2008 - 12:41:07 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Dollar extends rally, euro sinks on weak EZ data

Wed Sep 3, 2008 7:38am EDT

* Euro/dollar hits 8-mth low on data showing weak economy

* Dollar continues advance, global economic jitters support

* BoC rate decision eyed ahead of ECB, BoE

(Changes byline, adds quotes, updates prices)

By Naomi Tajitsu

LONDON, Sept 3 (Reuters) - The euro plumbed an eight-month low against the dollar on Wednesday after a fall in euro zone retail sales and figures confirming negative growth fuelled the possibility that the region may be veering towards a recession.

The dismal figures helped the dollar extend its winning streak and the U.S. currency soared to an 11-month high against a basket of major currencies as investors increasingly put faith in the U.S. unit amid a deteriorating global economic backdrop.

"The euro had been under pressure for most of the day ... and the retail sales have led to more of a collapse," said David Page, economist at Investec, adding that the euro may stay under selling pressure as it would likely be difficult for the economy to recover from slowing growth.

"There's more trend deterioration in the euro zone, i.e. a recession in the third quarter," he said.

Figures confirmed that the euro zone economy shrank 0.2 percent in the second quarter from the first, marking the first quarterly decline since the data series began in 1995.

Along with a surprising 0.4 percent drop in regional retail sales, the data added to the view that growth is slowing even as inflationary pressures nag the economy [ID:nL2117725].

The euro <EUR=> buckled on the announcement to hit $1.4386, its lowest since January and approaching $1.4643, the pair's lowest level of the year.

Supporting the dollar at the expense of high-yielding currencies was a fall in crude oil prices, which have tumbled to around $108 a barrel CLc1 after Hurricane Gustav left energy facilities in the Gulf of Mexico mostly unscathed.

The dollar index .DXY, which tracks its performance against six major currencies, rose more than 0.7 percent to an 11-month high of 78.651.

The index has gained about 9 percent since mid-July, breaking long-term technical resistance levels that have convinced many analysts it is poised for a long-term recovery.

The dollar <JPY=> was flat against the yen at 108.65 yen, but its overall rally continued to batter an already deflated sterling, which hit a 2 1/2-year low due to ongoing speculation that the UK economy is also heading towards a recession.

Sterling <GBP=> fell as low as $1.7669, crashing more than a full cent to its lowest since April 2006, before figures showing an improvement in the UK services sector pulled the beleaguered UK currency to $1.7720 by 1055 GMT.

The Australian <AUD=> and New Zealand dollars <NZD=> each fell more than 1 percent to one-year lows against the U.S. dollar, with the Aussie pressured on data showing Australian economic growth slowed more than expected in the second quarter.

Analysts said investors were increasingly getting on board with the greenback as a safer place to allocate cash compared with other currencies whose countries were further behind in terms of economic readjustment in the wake of the global credit crunch.

"We're seeing a continuation of the trend where sentiment on the rest of the world is deteriorating while sentiment in the U.S. is improving albeit from a very low base, and the dollar is outperforming as a result," RBC head of FX strategy Adam Cole said.


Given increasingly grim figures on economies around the world, investors awaited interest rate meetings by major central banks later in the day and on Thursday.

The European Central Bank and the Bank of England will issue seperate rate decisions on Thursday, when both are expected to keep rates on hold. [ID:nL1358323] [ID:nL2593052]

The ECB has long reiterated that its main concern lies in taming inflationary pressures, and that it will tighten policy if price risks ramain high.

But analysts say that it is slowly acknowledging economic weakness and Page at Investec said an increasingly bearish growth view may spur speculation of a possible rate cut in the future, which may put the euro under more selling pressure.

"We saw significant market reaction to guarded comments (on the economy) from (ECB President Jean-Claude) Trichet last month and if we see a more significant downgrade to the euro zone growth outlook from the Governing Council, we can expect to see the euro under more pressure," he said.

Before the ECB and the BoE decisions, the Bank of Canada will announce its rate decision later on Wednesday, when it is seen holding rates at 3 percent, although there is minority talk of a downside surprise.

(Additional reporting by Veronica Brown, editing by Stephen Nisbet)

© 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

Tue 17 July 2018
AA 08:30 GB- Employment
A 13:15 US- Industrial Production
AA 14:00 US-Powell Testimony
Wed 18 July 2018
AA 08:30 GB- CPI
A 12:30 US- Housing Starts/Permits
AA 14:00 US-Powell Testimony
Thu 19 July 2018
AA 1:30 AU- Employment
AA 08:30 GB- Retail Sales
A 14:30 US- EIA Crude
A 12:30 US- Weekly Jobless
Fri 20 Jun 2018
A 12:30 CA- CPI/Retail Sales

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