Â·US Fed willing
to resort to unconventional monetary policy measures
Â·ECB, BoE and
Swedish Riksbank make further interest rate cuts
Â·Pound falls to
new lows, burdened by aggressive easing
week has brought bad news on the economic front, especially from the US,
but the main focus has been on further interest rate cuts. Central banks in
industrialized countries are lowering their key interest rates drastically in
an attempt to combat the constraints in financial markets and improve financing
conditions for companies and private households. On Wednesday night, the Reserve
Bank of New Zealand
cut interest rates by 150bp to 5%; the Swedish Riksbank followed suit
on Thursday morning by slashing interest rates by 175 bp to 2%. Then at ,
the Bank of England lowered the bank rate by 100 bp to 2%, and finally, half an
hour later, the ECB cut the refi rate by 75 bp to 2.5%.
central banks which no longer have much scope to cut interest rates are taking
action too: at the beginning of the week, the Bank of Japan agreed in an
extraordinary meeting to accept lower-rated corporate bonds and loans as
eligible collateral. But a particularly striking announcement came from the
Fed: Fed chairman Ben Bernanke indicated that, as well as using conventional interest
rate policies to support the economy, the Fed was also willing to resort to
unconventional measures. He was referring on the one hand to measures open to
the Fed to influence longer-term interest rates, such as purchasing long-term
Treasuries or committing itself to keeping interest rates low. But on the other
hand there was also the option of â€śinterveningâ€ť in certain market sectors to
improve market conditions for investors and issuers. In this connection, he pointed
out recent measures like the purchase of securities and MBS issued by
government sponsored mortgage lenders such as Fannie Mae and Freddie Mac, and
the facility for purchasing ABS collateralized by consumer loans.
ECB did cut key interest rates by a further 75 basis points, which was more or
less what markets were expecting. But whereas the Fed is pulling out all the
stops, the ECB seems hesitant and indecisive. The ECB staff
growth projection forecasts distinctly weak demand until well into the year
2010, but the Governing Council sees inflation risks as being â€śmore balanced
than in the
pastâ€ť, i.e.: not yet balanced. And at the press conference, ECB president
Jean-Claude Trichet made no mention whatever of future monetary policy
intentions, pointing out instead that by cutting interest rates by a total of
175 bp within a few weeks, a lot had been done already. Furthermore, he said
the Council had â€śreached the decision to reduce interest rates by 75 bp by
consensusâ€ť, which suggests that some Council members might have been happier
with a more leisurely pace. In a newspaper interview after the meeting, ECB
Governing Council member Yves Mersch, for instance, stated that rates would not
be cut by such big amounts in the future.
view of the indecisive signals from the ECB and the long rally beforehand, bond
and money markets have corrected since the meeting. The interest rate
differential between the eurozone and the US,
where interest rates are expected to be cut to 0.5% on 16 December, has widened.
This has boosted the euro: EUR-USD rose over 1.28 temporarily. However, we are
expecting the rate cut process in the eurozone to continue. German industrial
new orders plummeted again â€“ they are now over 17% below last yearâ€™s level; but
this is only one of many signs that the eurozone is falling deeper into
recession. The ECB will be forced to take further action sooner rather than
later. We therefore expect EUR-USD to move back into the lower end of the
trading range of the last few weeks shortly.
same action taken by two different organizations, does not necessarily have the
same effect. The
forex market seems to be rating the US Fedâ€™s extremely expansive monetary
policy much higher than comparable efforts made by the BoE. In the space of
less than two months, the UK
central bank has cut key interest rates by 300 basis points to 2%, signalled
that further cuts are on the cards, and indicated possible cooperation with the
Treasury, i.e: quantitative easing by means of direct purchase of government
bonds. At any rate, the forex marketâ€™s reaction to all this was somewhat
allergic: cable fell below 1.45 at times, EUR-GBP rose to a new high of 0.8726.
With regard to EUR-GBP in particular, we see further risks ahead.
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."
Actionable trading levels delivered to YOUR charts in real-time.
Mon 19 Mar 2018 Tue 20 Mar 2018 AA 9:30 GB- CPI A 10:00 DE- ZEW Survey Wed 21 Mar 2018 AA 03:00 AU- Employment AA 9:30 GB- Employment A 12:30 US- Current Account AA 14:00 US- Existing Homes Sales A 14:30 US- EIA Crude A A18:00 US- Fed Rate Decision A 21:00 NZ- RBNZ Rate Decision Thu 22 Mar 2018 AA All Day flash PMIs AA 9:30 GB- Retail Sales AA 12:00 GB- Bank Of England Decision A 13:30 US- Weekly Jobless Fri 23 Mar 2018 AA 12:30 CA- CPI/Retail Sales A 12:30 US- Durable Goods A 14:00 US- New Homes Sales
John M. Bland, MBA co-founding Partner, Global-View.com
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.
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.