User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday December 16, 2008 - 10:48:21 GMT
Global Forex Trading -

Share This Story:
| | Email

Forex Research - Euro, Pound Run Into a Wall of Profit Taking Ahead of FOMC

Euro, Pound Run Into a Wall of Profit Taking Ahead of FOMC Last Updated 12/16/2008 5:41:24 AM EST (GMT +5)

Top Stories

  • Auto bailout may be ready by Wednesday
  • BOJ considering buying CP to aid credit markets
  • All eyes on FOMC 50bp or 75bp?
  • Profit taking main theme of the night in FX
  • Oil at $45/bbl after hitting $50/bbl yesterday
  • Gold maintains bid at $833/oz last

Overnight Eco

  • JPY Tertiary Industry Activity 0.4% vs -0.2%
  • AUD Monetary Policy Meeting Minutes
  • AUD Housing Starts -10.7% much worse than -2.3% forecast
  • EUR French Final Non-Farm Payrolls -0.2% vs -0.1% eyed
  • EUR French Flash Manufacturing PMI 35.9 in line with 35.8 called
  • CHF Industrial Production drops sharply to -5.2% from -2.2% expected
  • EUR German Flash PMI 46.4 vs.44.0 forecast
  • EUR Employment Change -0.1% vs. 0.2% last
  • EUR Flash Manufacturing PMI 34.5 vs 34.3
  • GBP CPI hotter 4.1%vs. 3.9%

Event Risk on Tap

  • CAD Manufacturing Sales
  • USD Building Permits expected at 0.70M
  • USD CPI expected at -1.2%
  • USD Housing Starts expected at 0.79M
  • USD Fed Rate Decision expected 50bp Cut

Price Action

  • USD/JPY trades towards 90.00 as traders anticipate FOMC cuts
  • AUD/USD holds up well throughout the night at 6700 ahead of the Fed decision
  • GBP/USD runs into a wall of profit taking ahead of 1.5400 despite hotter CPI
  • EUR/USD trades to 1.3650 as PMI gauges remain depressed and traders take profit on the recent rally

After several straight days of triple digit gains both EUR/USD and GBP/USD stalled in early European session as traders locked in profits ahead of the FOMC decision scheduled for 17:15 GMT later today.  In relatively quiet night of trade the euro fell back from the 1.3700 level hitting a low of 1.3628 as data from the EZ showed continued weakness in both service and manufacturing gauges.   Cable dropped even harder to 1.5210 after reaching a high of 1.5477 yesterday despite hotter than expected CPI numbers.  

In Europe the flash Manufacturing PMI data showed that that sector remained in the doldrums with the reading of 34.5 vs. 34.3 forecast. The German flash PMI services number improved modestly to 46.4 from 44.0 forecast but remained well below the 50 boom/bust level. The news confirmed that the region is quagmired in a deep recession indicating that the ECB will have to lower rates continuously throughout 2009. As we noted yesterday euro's recent rally has been sparked by end of the year demand for yield as the unit remains the only G-4 currency with a better than 2% rate. However, the rally in the EUR/USD could run out of gas if the market begins to anticipate the fact that the yield differential will quickly melt away next year.

Cable also hit a wall of profit taking falling more than 100 points on the night despite the surprisingly hotter CPI reading which printed at 4.1% vs. 3.9% forecast. Nevertheless, the post data rally evaporated within minutes as traders speculated that BoE will ignore the bump in price levels given the overall weakness of the UK economy. At best, today’s hawkish inflation news may slow the pace of easing by Mr. King and company with rate lowered by 50bp in two monthly moves next year versus the initial expectations of a -100bp cut in January.  

As attention turns to the North American session all focus will shift to the FOMC decision at 17:15 GMT. The consensus call is for a -50bp cut, and we tend to agree with the market believing that the Fed will want to save some ammunition for next year. However if US monetary officials opt for a much more dramatic -75bp cut the greenback will become the lowest yielding currency in the G-10 universe and EUR/USD and GBP/USD may well recapture yesterday highs as the pressure on the dollar is likely to mount.

FX Upcoming

Currency GMT EST Release Expected Prior
CAD 13:30 8:30 Manufacturing Sales m/m 0.1%
USD 13:30 8:30 USD Building Permits 0.70M 0.73M
USD 13:30 8:30 USD CPI -1.2% -1.0%
USD 13:30 8:30 USD Housing Starts 0.75M 0.79M
USD 7:15 2:15 USD Fed Rate Decision 0.50% 1.00%

About The Author

Schlossberg has more than 20 years experience financial trading on Wall Street. His daily currency research appears in numerous newspapers worldwide and Schlossberg serves as a regular contributor to CNBC's Squawk Box and Bloomberg radio and television. Read more >>

DISCLAIMER: This forum and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this column for your general information. This forum and its information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision based upon this forum or any information contained within. In addition, any projections or views of the market provided by the author may not prove to be accurate. Global Forex Trading and Boris Schlossberg will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this column. Global Forex Trading and Boris Schlossberg do not render investment, legal, accounting, tax or other professional advice. If such advice is sought, or other expert assistance is required, the services of a competent professional should be sought.





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 23 July 2018
A 14:00 US- Existing Homes Sales
Tue 24 July 2018
AFlash PMIs
Wed 25 July 2018
A 08:00 DE- IFO Survey
A 14:00 US- New Homes Sales
A 14:30 US- EIA Crude
Thu 26 July 2018
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
A 12:30 US- Durable Goods
Fri 27 July 2018
AA 12:30 US- GDP
A 14:00 US- Final 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