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 Chinaâ€™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investors have withdrawn the record sum of $89bn from money market funds.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.
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 â€“ 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 governmentâ€™s deposit guarantee fund.
forex marketsâ€™ 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 dollarâ€™s losses were small, especially bearing
in mind that in the last few weeks, a lot of confidence had been placed in the US
the most important argument in favour of the dollar at present is the fact that
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.
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.
governmentâ€™s initiative has calmed things down a bit, the financial crisis will
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 Bernankeâ€™s statement
before the Joint Economic Committee
of the Congress on Wednesday.
this environment, fundamental data are only likely to have a limited impact on
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 ECBâ€™s scope for cutting interest rates is
is not clear, however, what impact this will have on the dollar: it could
benefit from the â€śbonus for political initiativeâ€ť, 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.
Rieke +49 69 718-4114
Grabbe / Klaus NĂ¤fken
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
rights reserved. Please mention source when quoting from it.
Forex Trading News
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
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.
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.
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.
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 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.
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 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.
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.
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.