User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday December 6, 2004 - 22:12:41 GMT -

Share This Story:
| | Email

Forex: Consolidation Likely To Occur In Dollar This Week

DailyFX Forex Fundamentals 12-06-04

By Kathy Lien, Chief Strategist of

· Consolidation Likely To Occur In Dollar This Week
· SNB Roth Signals That Dollar Weakness Could Delay Future Rate Hikes
· Canada Rate Decision Up In The Air


Consolidation should be the theme in the euro this week with the lack of significant economic data from the US until Friday. With short term volatility significantly higher than longer term volatility, conditions are in place for volatility to return to normal levels and gyrations in price action to be less pronounced this week. Although the euro appears to be very extended, the bullish tone remains. With an unnamed Treasury Official indicating that the US has no intentions of intervening in the dollar until it falls to 1.45 against the euro, traders will continue to look for opportunities to buy on dips. The lack of significant news in US trading allowed the dollar to benefit from the concerned comments of EU finance ministers following the EcoFin meeting in Brussels. They collectively indicated that “excessive” moves in exchange rates are not welcome. Contrary to the ECB’s statement at the press conference following their monetary policy meeting last week, Belgium finance minister Reynders said that a rate cut would be more appropriate than a rate hike. However the decisions on monetary policy and intervention still lies in the hands of the ECB, and furthermore, the EU finance ministers have done nothing more than reiterate previous concerns. Eurozone government officials still believe that intervention without the US would be useless, therefore these critical comments about the euro’s rapid ascent holds as much validity as the US’ ”strong dollar” policy.


The US dollar will probably find an opportunity to recuperate some of its recent losses with a quiet economic calendar this week. One of the biggest news for the markets today is speculation that US Treasury Secretary Snow could possibly be replaced by White House Chief of Staff Andrew Card (according to NY Times). The announcement has not been confirmed and should have a nominal impact on the currency markets. In the meantime, we once again draw our readers attention to the increased risk of treasury dumping by foreign central banks. So far we know that Russia will be readjusting their dollar denominated reserve holdings. Although China has denied rumors of possibly selling of US Treasuries, the widespread speculation that they will eventually peg the Yuan to a weighted basket of currencies suggests that an adjustment of reserves could happen eventually. The latest in Treasury dumping news was an article published in the UK’s Observer newspaper. According to the article, an unnamed Japanese official said that if the dollar continues to fall, it would negatively impact capital inflow to the US. Although Japan later denied any plans to dump treasuries, these recent rumors do not go completely unsubstantiated given the erosion effect the weaker dollar must be having on the central bank portfolios. South Africa and India are also suspected to consider dumping US treasuries. Meanwhile, SNB President Roth continues to signal that dollar weakness could delay further interest rate hikes by the Swiss National Bank.


A mixed bag of data in the UK has given the pound reason to pause its spectacular rally. Industrial production fell –0.1% in the month of October, which is the fifth month of contracting growth. Growth in the manufacturing sector in general has been pretty lackluster for some time now. However, the NIESR did report a higher GDP estimate for the month of November as compared to October. Yet, the movement in the GBPUSD will continue to be dictated by the US dollar. Therefore more consolidation is most likely in store for the pound over the next 24 hours.


There has been respite for dollar yen today with the retracement in oil prices helping the pair reverse all of Friday’s losses. The move below 102 over the past 24 hours has injected sharp fears about intervention, especially as warnings came from Japan’s Business Lobby Head that further weakness in USDJPY could hurt the profits of exporters. The market is speculating that the MoF is eyeing the 102 level relatively closely, though the true threshold of pain is probably closer to the 100-level.


Expectations for a rate hike by the Bank of Canada has shifted dramatically over the past week. The market now expects the BoC to keep rates unchanged at 2.50%, compared to their original forecast for a quarter point hike. The shift in forecast follows Governor Dodge’s warning that the strength in the Canadian dollar could take a significant toll on growth. Throughout last week, we saw justification for his concern. GDP growth fell short of expectations in the third quarter, with a downward revision in Q2 as well. Labor market data also disappointed as the net positive change in employment increased less than expected, with the unemployment rate increasing. Data today though makes the forecast even murkier with the IVEY Purchasing Managers index improving and building permits rebounding.


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 10 Sep 2018
AA 08:30 GB- GDP, Trade, Output
Tue 11 Sep 2018
AA 08:30 GB- Employment Decision
A 09:00 DE- ZEW Survey
Wed 12 Sep 2018
A 12:30 US- PPI
A 14:30 US- EIA Crude
A 18:00 US- Beige Book
Thu 13 Sep 2018
A 1:30 AU- Employment
AA 11:00 GB- Bank of England Decision
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
AA 12:30 US- CPI
Fri 14 Sep 2018
A 08:30 GB- GDP
AA 12:30 US- Retail Sales
A 13:15 US- Industrial Production
AA 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