User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday October 20, 2008 - 20:31:30 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Dollar rallies despite rise in risk appetite


Mon Oct 20, 2008 4:25pm EDT

* Dollar rebounds, shrugs off improvement in risk appetite

* Fed's Bernanke endorses idea of second stimulus plan

* Stocks on Wall Street maintain gains (Recasts, updates prices, changes byline)

By Nick Olivari

NEW YORK, Oct 20 (Reuters) - The U.S. dollar rallied on Monday despite an improvement in risk appetite and a drop in interbank lending rates as companies bought the U.S. currency to meet their operational needs.

Analysts said the dollar also received a boost from Federal Reserve Chairman Ben Bernanke's testimony before Congress endorsing another stimulus plan for the sluggish economy.

A second package would reduce pressure on monetary policy to provide all the stimulus for the economy, although it could worsen the country's already huge budget deficit, they said.

"Liquidity is so thin ... companies and other financial institutions are using the dollar to cover all their finance needs," said Greg Salvaggio, vice president for trading at Tempus Consulting in Washington, D.C.

Tight credit conditions and fears of a global recession have lent the dollar a safe-haven currency status.

Continuing efforts to bail out banks around the world, including the Dutch government's cash injection into ING and South Korea's pledge to pump funds into its financial system, pushed interbank dollar lending rates lower and revived interest in risky assets such as stocks.

"This is more a story about flows. There is still some real money demand for dollars out there," said Alan Ruskin, chief international strategist at RBS Global Banking in Greenwich, Connecticut.

"People feel risk is coming back, but it's not coming back against all currencies."

U.S. stocks rose, following other markets around the world from Asia to Europe as investors chose not to focus on a looming global recession.


The euro slumped to session lows around $1.3287 <EUR=>, wiping out gains that lifted it as high as $1.3530 in overnight trade on the back of the improvement in risk appetite. It was last down 0.6 percent at $1.3322.

That lifted the ICE Futures U.S. dollar index, which measures the dollar's value against a basket of six currencies, 0.7 percent to 83.062 .DXY.

Some analysts said the dollar's strength could also be linked to Tuesday's payout on Lehman Brothers credit default swaps.

"That creates a technical demand for dollars. A lot of that has to be settled in dollars," said Boris Schlossberg, director of FX research at GFT Forex in New York.

The dollar's gains came despite London interbank offered rates for overnight dollars falling to a four-year low near the Federal Reserve's target rate of 1.5 percent. One-week and three-month rates fell by almost half a percentage point. LIBOR

"Demand for the buck will remain high at least until the presidential elections," said Tempus Consulting's Salvaggio.

"Until then, I would sell euros any time it gets close to $1.35 and buy it back when it touches $1.33."

Against the Japanese yen, the dollar was up 0.1 percent at 101.79 yen <JPY=>, after rising on Bernanke's endorsement of another stimulus package. The euro fell 0.5 percent to 135.63 yen <EURPJPY=>.

"To the extent there is some more fiscal stimulus in the works, that does take some of the pressure off monetary policy to provide all the stimulus that the economy needs," said RBS Global Banking's Ruskin.

"The market would react initially as dollar positive although quite frankly, there is some serious danger that here we go again and the budget deficit is just blowing out to such extraordinary proportions we have lost control in a way."

Sterling gave up earlier gains and was last down 0.8 percent at $1.7138 <GBP=>. The high-yielding Australian and New Zealand dollars clung to gains.

The Aussie dollar was last up 2.0 percent at US$0.7022 <AUD=>, while the Kiwi dollar advanced 2.0 percent to US$0.6239 <NZD=>. Against the Canadian dollar, the greenback rose 1 percent to C$1.1934 <CAD=>. (Additional reporting by Vivianne Rodrigues; Editing by Diane Craft) (([email protected]; +1-646-223-6151; Reuters Messaging: [email protected]))

© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.


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