User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday December 10, 2004 - 20:44:52 GMT -

Share This Story:
| | Email

Forex: Dollars Rallies On Higher Inflation and Stronger Confidence

DailyFX Forex Fundamentals 12-10-04

By Kathy Lien, Chief Strategist of

· Dollars Rallies On Higher Inflation and Stronger Confidence
· Disappointing Eurozone Data Keeps Euro Weak
· Yen Extends Slide As Outlook For Growth Remains Dismal


Things are really turning sour for the euro. The tides have shifted slightly with France having a higher count of disappointing reports than Germany over the past few weeks. Unlike the better than expected industrial production reports that were released by Germany yesterday, industrial production contracted more than expected in France, while the trade deficit widenend to highest level in 10 years. Previously, economic growth in France was one of the most resilient in the Eurozone. Now however, the strong euro is slowing down the French economy significantly. Yesterday, Remy Cointreau SA said that fluctuations in currencies have played a big role in the 42% fall in profits. French consumer spending could also be threatened as the stronger euro could deter firms from hiring. Meanwhile, consumer price inflation slowed in both Germany and France during the month of November as oil prices retraced and the soaring euro lowers the cost of imports. The latest data contrasts with the ECB’s fears that inflation will tick higher in the months to come. In the meantime, this consolidation in the euro this past week should come to an end with a heavy economic calendar in the week to come. Dips so far in the euro have been relatively shallow, suggesting that any weak data will give euro bulls sufficient catalyst to rally the currency back towards previous highs.


Higher inflation and stronger consumer confidence has helped the dollar hold on to its weekly gains against the Swiss Franc and the Euro. Producer prices increased 0.5% in November, which was a sharp rise from the market’s forecast of 0.1%. Core PPI growth on the other hand, which excludes the more volatile food and energy components slowed from 0.3% to 0.2% m/m. Higher oil and raw material prices drove the cost of inputs higher for producers. However, the core rate increased by the weakest pace since July. Consumer confidence, as measured by the University of Michigan consumer confidence survey accelerated from 92.8 to 95.7, partially because the higher prices have had a limited pass through cost to consumers. Also rising stock prices and falling gasoline prices have helped to bolster optimism. The latest reports further solidify expectations for another quarter point rate hike by the Fed on Tuesday. The only reason Greenspan would have to keep rates unchanged is his eternal fear of being known as the “Grinch of Christmas.”


The British pound remained under selling pressure today amid residual sentiment of yesterday’s trade deficit data and the Bank of England’s decision to keep rates unchanged at 4.75 percent. With nothing on the economic front, there was little throughout the day to exacerbate the current overall decline from a record 12-year high of $1.9507 hit on December 7th. As a result of the weekend, investors will be anticipating a couple of key reports next week as recent releases on manufacturing, production and housing prices have disappointed, suggesting that tightening policies continue to take effect, eliminating the risk of future interest rate hikes. Currently short sterling contracts are not favoring a 25 basis point increase until the second half of 2005. Ultimately, investors will be looking for confirmation in next week’s economic data for signs of continued expansion to justify current forecasts for a 3.2% growth in Europe's second largest economy.


To the relief of the Japanese government, the dollar rallied to a high of 106.23 against the yen before retracing some of its gains later in the day. The extensive rally that we have seen over the past 3 days has stemmed from the recent widening of the current account surplus and weakness in Japanese growth. The outlook remains equally dismal as a survey of 15 private think tanks released today expect growth to slow to 1.2% in 2005 from 2.1% in 2004. However, the main focus next week for Japan will be the quarterly Tankan survey of business sentiment. For the first time in six quarters, the index is expected to deteriorate. High oil prices, weak global demand and a strong yen should all be applicable factors.


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