User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday September 15, 2008 - 16:52:40 GMT
Trade the News Staff -

Share This Story:
| | Email

Forex Blog - US Market Update

Dow -265 NASDAQ -32 S&P -28

- Markets are attempting to pare losses after a massive sell-off in the wake of Lehman's bankruptcy filing, the sale of Merrill to Bank of America and the deterioration of AIG shares. In any case, the financial world is in turmoil this morning as the tectonic shifts taking place on Wall Street continue to unwind. The DJIA plunged more than 2.5% on the open before retracing around 1.0%, while the Nasdaq opened down 2.5% and has recovered hand in hand with the Dow. Oil is trading down $4.50 in mid-morning trading around $96, as initial assessments of Ike damage seem to be less horrific than feared. Money is finding its way to Gold but most other commodities are lower.

- Merrill sold itself to Bank of America for $50B in an all-stock deal (representing about $29/shr v Merrill's closing price on Friday of $17. 05/shr). Traders seem to valuing the deal as rich, as Merrill continues trading around the $21/shr level and BAC is down about 14%. By adding Merrill's 16,000+ financial advisers to its own
staff, the deal would make BAC the largest brokerage in the world with more than 20,000 advisers and $2.5T in client assets under management. It would also be the number one underwriter of global high-yield debt, the third largest underwriter of global equity and the ninth largest adviser on global mergers and acquisitions. It also gets Merrill's 50% stake in Blackrock, which has $1. 4T in assets under management. BAC CEO Lewis said the Merrill deal will be mildly dilutive to EPS in 2009 and that BAC will hit breakeven on the deal in 2010. Before the open this morning, S&P lower its credit rating on BAC to AA- from AA, putting the bank on watch negative. Moody's put the bank's ratings on review for a possible downgrade.

- Few details have emerged from the Lehman bankruptcy. Apparently the Fed and Treasury worked behind the scenes to arrange a sale of the firm over the weekend. Barclays was among the suitors, but the bank apparently walked away from any deal after the Fed refused to fund a buyout. Bank of America was also rumored to be in the running, although later events show the found a better deal elsewhere. Needless to say, time ran out and the New York Times reported late on Sunday that Lehman would file for bankruptcy protection, which LEH confirmed early this morning in a press release. According to the Times, parent company Lehman Brothers Holdings will seek bankruptcy protection, while its subsidiaries will remain solvent during liquidation. A group of banks will provide a financial backstop to help provide an orderly winding down of the investment bank, while the Fed has agreed to accept lower- quality assets in return for government loans to support the deal. CNBC later reported that Lehman may have more than $1.0T in outstanding counterparty trades.

- On Saturday media reported on an evolving situation at AIG, as the firm's executives and various state insurance regulators rushed to arrange a capital infusion for firm in order to avoid a possible credit downgrade. Reports specified Monday morning as the time AIG would announce its restructuring plan, which would likely include the disposal of major assets including its aircraft-leasing business and other holdings. On Sunday a UBS analyst cut BAC's price target to $26 from $41 and lowered its Q3 EPS estimate to a loss of $2.63/shr from loss of $0. 57/shr prior, while noting that the firm has sufficient funds to meet short- term requirements without raising more capital. Citigroup and (ironically) Merrill both cut the firm to a hold from buy. Markets are now awaiting the firm's plan and/or any ratings downgrades. AIG is down more than 40%. All eyes remain on AIG shares as the stock makes fresh lows below $6 ahead of an expected announcement from the NY Governor.

- Washington Mutual CEO told the Seattle Times on Saturday that he would be able to turn the troubled bank around, although the name has lost another 15% of its value today as investors express their skepticism about the firm. Thalmann's Dick Bove said that a bailout of WaMu may cost taxpayers as much as $24B, and that the government would need to guarantee WaMu's mortgages in order to find a buyer for the company. The FT warned on Saturday that the failure of a commercial bank such as WaMu could have systemic consequences if it threatens a run on other weak banks. Morgan Stanley commented that a JP Morgan buyout of WaMu would make sense.

- Other financial stocks are all over the place in early trading, with JP Morgan trading around even, Goldman Sachs and Citi down 5%, Morgan Stanley off 9% and CIT down 12%. Observers are noting that any other firm holding large amounts of problem mortgages now faces the possibility that any forced sale of Lehman's holdings will drive down prices and force a fresh round of writedowns, with Citigroup, Merrill and AIG among the firms that could get hit hardest from this scenario. According to the WSJ, applying Lehman's latest marks to AIG's mortgage book could result in at least $15B in added writedowns to the residential portfolio, which has a face value of $88B. Citigroup could face about $7B in added writedowns if it applied Lehman's math to its alt-A portfolio alone. Pimco's Bill Gross warned that Lehman's bankruptcy raises the risk of an “immediate tsunami” related to unwind of derivative positions.

- Note that the Fed also boosted the size of its TSLF program over the weeked by $25B to $200B in total and said it would increase the frequency of auctions to every week from every other week. In addition, at an emergency meeting over the weekend, the heads of major financial institutions urged New York Fed President Geitner and Treasury Secretary Paulson to reinstate a temporary rule to limit short selling. Treasury prices have soared as the carnage in the financials has money flooding into the relative safety of bonds. The 10-year yield has fallen to 3.5% while the 2-year is below 1.9%. Before the open fed funds were nearly fully pricing in a 25 basis point cut from the FOMC tomorrow but those odds have backed off towards 50% late in the NY morning.

- Almost lost in the shuffle this morning were two disheartening economic reports, with the Fed's August Industrial Production number was worse than expected. The weakness was led by a more than 11% drop in the production of motor vehicles and parts, reflecting the hard times facing the auto industry. Meanwhile, the September Empire Manufacturing Survey coming in way below estimates at -7.4 versus the expected 1.0 reading, the with prices paid component showing the biggest drop in seven years.

- In currencies, the USD and carry-related pairs exhibited a high level of volatility in a session marked by extreme risk. Fed funds moved towards the 4% level after a $20B overnight repo operation prompted a major scramble for liquidity. This compares to the 2.0% Fed funds target. Overall, the USD remains in positive territory aided by rumors of emergency ECB rate cut as dealers noting that perhad the current global financial market situation has sent the central bank towards “the brink ". Overall, the ECB has been generous with liquidity injections through out the credit crisis, however at this stage of the game there is a chance that prolonged panic on the back of Lehman Brothers Holdings' bankruptcy filing and AIG woes could prompt an emergency reduction of the benchmark rate. EUR/JPY tested 148.60 before recovering and EUR/CHF off 120+ pips below the 1.59 handle.


Legal disclaimer and risk disclosure

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.


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 9 July 2018
AA 12:00 EZ- Draghi EU Parliament Testimony
Tue 10 July 2018
AA 08:30 GB- Ind/Prod Output, Trade
AA 09:00 DE- ZEW Survey
Wed 11 July 2018
A 12:30 US- PPI
A 14:00 CA- Bank Of Canada Decision
A 14:30 US- EIA Crude
Thu 12 July 2018
AA 12:30 US- CPI
Fri 13 July 2018
A 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