User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday September 19, 2008 - 16:51:45 GMT
BHF-Bank -

Share This Story:
| | Email

FX Briefing - Wall Street in state of emergency

FX Briefing 19 September 2008


·        Financial market crisis claims more victims

·        Hank and Ben plan emergency operation


Wall Street in state of emergency

The financial crisis has reached a new dimension this week: Lehman Brothers Holding had to file a petition under chapter 11 of the US Bankruptcy Code; the collapse of the US insurer AIG was only averted by the Fed agreeing an $85bn bailout and the US government taking control of the company. The Bank of America has taken over Merrill Lynch, and Lloyds TSB has bought the British mortgage lender HBOS in a governmentbrokered deal; Morgan Stanley urgently started looking for a merger partner with a strong capital base and is in talks with Wachovia and China’s CIC. The central banks of the large industrialized countries are once again pumping huge amounts of liquidity, mainly US dollars, into the money market, to ease the enormous tension. According to news reports, in the last fortnight, US investors have withdrawn the record sum of $89bn from money market funds. Equity markets have plummeted to new record lows, and credit default swap spreads for financials have exploded.


Towards the end of the week, the US government pulled the emergency brake: Treasury Secretary Hank Paulson announced that Congress together with the Federal Reserve was working on a plan to set up a special vehicle to buy up toxic assets (i.e. illiquid mortgage-backed assets) from financial institutions. The aim is to unburden bank balance sheets and reduce valuation uncertainty – crucial to restoring confidence in the financial sector. Details of the plan have still to be worked out, but it is already clear that the US government, which has already forked out billions for Fannie, Freddie, AIG and Bear Stearns, will burden itself and tax payers with even more enormous risks. Supposedly, this special vehicle is to be allotted $800bn. A further $400bn are to be put into the government’s deposit guarantee fund.


The forex markets’ reaction to the unprecedented deepening of the crisis was remarkably restrained. During the course of the week, EURUSD rose to 1.45 for a short time. The dollar lost slightly more ground against the yen and the Swiss franc: USD-JPY fell below 104 temporarily and USD-CHF below 1.10. Cable rose to almost 1.83. However, on Friday, after the rescue plan had been announced, the dollar recouped most of its losses. Towards the end of the week, the euro was around 1.42, USD-JPY 107.50, USD-CHF about 1.12 and GBP-USD just under 1.80. Compared to the previous week, the dollar’s losses were small, especially bearing in mind that in the last few weeks, a lot of confidence had been placed in the US currency.


Perhaps the most important argument in favour of the dollar at present is the fact that the US

government has taken the initiative and is trying to find solutions to the problems. The new plan is further proof of this. In comparison, European policy appears passive. Although the problems in the financial sector are likely to get even worse due to the economic downswing in Europe, policymakers are offering little more than reassuring words.


But taking action is in itself not necessarily laudable, particularly if there is no alternative because of the extent of the problems. It must also be borne in mind that the proposed rescue measures are basically just shifting the risks and burdens on to the (hopefully) broader shoulders of the American tax payers. Moreover, it will be very difficult to find a fair valuation for the toxic assets in bank balance sheets.


Although the US government’s initiative has calmed things down a bit, the financial crisis will

continue to dominate events in the markets next week. Markets will be keenly awaiting details of the plan, as well as the speeches of Treasury Secretary Hank Paulson and Fed Chairman Ben Bernanke in the Senate on Tuesday and Ben Bernanke’s statement before the Joint Economic Committee of the Congress on Wednesday.


In this environment, fundamental data are only likely to have a limited impact on the market.

There are some important indicators on the agenda, however, particularly in Europe: towards the middle of the week, several national sentiment indicators in the eurozone countries will be published, including the ifo business climate index on Wednesday. We are expecting these to have deteriorated further on the whole. Towards the end of the week, the preliminary September German consumer prices will be released; the inflation rate will probably fall below 3%. Thus the fundamental data are showing that the ECB’s scope for cutting interest rates is increasing.


It is not clear, however, what impact this will have on the dollar: it could benefit from the “bonus for political initiative”, and possibly from the signs of economic weakness in the eurozone. The situation in the US financial sector in particular continues to be extremely uncertain, however.


Stephan Rieke +49 69 718-4114

Economics Department

+49 69 718-3642

[email protected]

Foreign Exchange Trading

[email protected]

Jörg Isselmann

+49 69 718-2695

Matthias Grabbe / Klaus Näfken

+49 69 718-2688


<i>This report has been prepared by BHF-BANK Aktiengesellschaft on behalf of itself and its affiliated companies (together "BHF-BANK Group") solely for the information of its clients. The information and opinions in this document are based on sources believed to be reliable and acting in good faith, but no representation or warranty, express or implied, is made by any member of the BHF-BANK Group as to their accuracy, completeness or correctness. Opinions and recommendations are given in good faith but without legal responsibility and are subject to change without notice. The information does not constitute advice or personal recommendation, for which the duty of suitability would be owed, but may facilitate your own investment decision. Moreover, you should seek your own advice as to the suitability of an investment matter mentioned herein. Investors are reminded that the price of securities and the income from them can go down as well as up and that the past performance of an investment or a market is not necessarily indicative for future results. This document is for information purposes only. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete, and this document is not, and should not be construed as, an offer to sell or solicitation of any offer to buy the securities mentioned in it. BHF-BANK Group and its officers and employees may have a long or short position or engage in transactions in any of the securities mentioned in this document, or in any related securities. This publication must not be distributed in the United States.

© 2007 BHF-BANK Aktiengesellschaft

All rights reserved. Please mention source when quoting from it.



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