User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday September 16, 2008 - 19:07:23 GMT
GCI Financial - www.gcitrading.com

Share This Story:
| | Email

Forex Market Commentary and Analysis (16 September 2008)

The euro extended recent losses vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4115 level and was capped around the $1.4305 level.  Technically, today’s intraday low was right around the 23.6% retracement of the move from $1.4910 to $1.3880.  The Federal Open Market Committee voted to not change monetary policy, contrary to many expectations. The FOMC reported “The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent. Strains in financial markets have increased significantly and labor markets have weakened further. Economic growth appears to have slowed recently, partly reflecting a softening of household spending. Tight credit conditions, the ongoing housing contraction, and some slowing in export growth are likely to weigh on economic growth over the next few quarters. Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth. Inflation has been high, spurred by the earlier increases in the prices of energy and some other commodities. The Committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain. The downside risks to growth and the upside risks to inflation are both of significant concern to the Committee. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability.” The Federal Reserve has pumped about US$ 140 billion into the financial system over the past couple of days in a bid to bring some calm to the financial markets.  Traders believe U.S. insurance giant AIG may be the next domino to fall with widespread speculation the company could file for bankruptcy as early as tomorrow absent any sort of solution to keep the company financially viable.  There is a growing consensus that there may not be a private sector solution available to salvage AIG and that a government bailout is required.  A government bailout is a very sticky subject in many financial quarters because the U.S. government refused to bail out Lehman Brothers and the firm filed for bankruptcy early yesterday.  The financial markets had fully priced in at least a 25bps cut by the Fed today and the lack of a rate cut may suggest the Fed will announce additional extraordinary liquidity provision measures in the immediate future.  Earlier today, interest rates on overnight interbank funds soared to 6.4375%, the highest level since January 2001 and three times above the official federal funds target.  Data released in the U.S. today saw the August consumer price index fall 0.1% m/m, the first monthly decline in nearly two years, while core CPI was up 0.2%.   TICS data saw foreign purchases of U.S. long-term securities total –US$ 25.6 billion in July, evidence that the U.S. failed to finance its current account deficit two months.  In eurozone news, Germany’s ZEW survey of economic expectations improved to -41.1 in September from -55.5 in August while German July retail sales were revised down to -1.5% m/m.  EMU-15 August consumer price inflation fell 0.1% m/m and rose 3.8% y/y and this means annualized inflation is still well above the European Central Bank’s 2.0% ceiling target.  Core inflation were up 0.3% m/m and 1.9% y/y. ECB member Nowotny warned Lehman Brothers’ demise could “inflict further damage” on the Europe’s economies.  Euro bids are cited around the US$ 1.3840 level.

¥/ CNY

The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥104.90 level and was supported around the ¥103.55 level.  Technically, today’s intraday high was right around the 38.2% retracement of the move from ¥95.70 to ¥110.65.  The yen gained ground across the board and the U.S. dollar’s gains suggest it is benefiting from the significant deleveraging that was associated with earlier short U.S. dollar trades.  Bank of Japan Governor Shirakawa overnight said “The Bank of Japan will carefully monitor the recent situation surrounding U.S. financial institutions and its impact.”  BoJ injected upwards of ¥2.5 trillion in two repo operations overnight, its largest infusion in six months and the overnight call rate fell to around 0.45% from 0.55% - 0.56% before the repo operation. Data released in Japan overnight saw August consumer confidence decline to 30.1 in August from 31.4 in July, the lowest print since June 1982 and the fifth consecutive decline.  Commenting on the yen’s recent movements, finance minister Ibuki reported they have “probably been within expectations.”  The Nikkei 225 stock index lost 4.95% to close at ¥11,609.72.  U.S. dollar bids are cited around the ¥102.45 level.  The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥147.00 figure and was capped around the ¥149.50 level.  The British pound and Swiss franc moved lower vis-à-vis the yen as the crosses tested bids around the ¥184.45 and ¥92.95 levels, respectively.  The Chinese yuan came off vis-à-vis the U.S. dollar as the greenback closed around CNY 6.8490 in the over-the-counter market, up from CNY 6.8450.  Data released in China overnight saw August property prices in 70 major Chinese cities up 5.3% y/y.



The British pound fell sharply vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.7735 level and was capped around the $1.8010 level.  Technically, today’s intraday high and low were right around the 38.2% and 50.0% levels of the respective retracements of the move between $1.7440 to $1.8125.  Data released in the U.K. today saw consumer price inflation reach a sixteen-year high of 4.7%, more than double Bank of England’s inflation target of 2.0% and the highest level in sixteen years.  The government also reported house prices were off 0.3% y/y in July.  BoE Governor King wrote a letter of explanation to Chancellor of the Exchequer Darling to explain why inflation was more than one percentage point away from the 2.0% inflation target.  King reported “The fall in the value of sterling pushes up on import price inflation, which, in the latest data for the second quarter of 2008 was around 12% - its fastest rate of growth in over twenty years.  Import price inflation is likely to remain high as the effects of the exchange rate continue to pass through.”  Notably, core CPI was up 2.0% in August, the highest level since January 1997.  The markets are pricing in additional sterling depreciation with the one-year forward rate at $1.75.  Cable bids are cited around the $1.7605 level.  The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ₤0.7980 level and was supported around the ₤0.7905 level.

CHF

The Swiss franc depreciated vis-à-vis the U.S. dollar today
as the greenback tested offers around the CHF 1.1250 level and was supported around the CHF 1.1045 level.  Technically, today’s intraday low was right around the 50% retracement of the move from CHF 1.2465 to CHF 0.9645.  Data released in Switzerland today saw Q2 industrial orders rise 5.4% y/y.  Swiss finance minister Merz reported ongoing U.S. financial market turbulence “will not have any direct impact on Swiss economy.”  U.S. dollar offers are cited around the CHF 1.1430 level.  The euro and British pound moved lower vis-à-vis the Swiss franc as the crosses tested bids around the CHF 1.5750 and CHF 1.9760 levels, respectively.

 

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."



Elevate Your Trading With The Amazing Trader!

The Amazing Trader includes:
  • Actionable trading levels delivered to YOUR charts in real-time.
  • Live trading strategy sessions.
  • Market Updates with Trading Tools.

Register To Test Your Amazing Trader


Trading Ideas for 23 October 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

Tue 24 Oct
All Day flash PMIs
Wed 25 Oct
01:30 AU- CPI
08:00 DE- IFO Survey
08:30 GB- GDP
14:00 CA- BOC Decision
14:30 US- EIA Crude
Thu 26 Oct
11:45 EZ- ECB Decision
12:30 US- Weekly Jobless
14:00 US- Pending Homes Sales
Fri 27 Oct
12:30 US- GDP
14:00 US- final Univ of Michigan

Forex Trading Outlook


Potential Trading Opportunities


  • POTENTIAL PRICE RISK: Medium Tue-- All Day Global flash PMIs. First good look at October economic performances.



  • POTENTIAL PRICE RISK: HIGH Wed-- 01:30 GMT AU- CPI. Top Inflation indicator.

  • POTENTIAL PRICE RISK: HIGH Wed-- 08:00 GMT DE- IFO Survey. Top German indicator.


  • POTENTIAL PRICE RISK: HIGH Wed-- 14:00 GMT CA- BOC Decision. No Policy Change Expected.


  • POTENTIAL PRICE RISK: Medium Wed-- 14:30 GMT US- EIA Crude. Top Weekly WTI Statistic.



John M. Bland, MBA
co-founding Partner, Global-View.com

EXCLUSIVE: Global-View Daily Trading Chart Points Updated

EXCLUSIVE: Global-View Free Forex Database updated




TRADER ADVOCACY ARTICLES

Trader's Advocate Articles..

pic

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 Global-View.com.

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

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.

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105