NEW YORK, Jan 14 (Reuters) - The euro fell against the dollar and yen on Wednesday after a downgrade to Greece's debt rating heightened fears about the euro-zone economy and a sharp slide in U.S. retail sales suggested a deepening global slump.
Though a 2.7 percent plunge in sales at U.S. stores in the December holiday shopping season shed light on the severity of the U.S. recession, the dollar gained on fear that a tapped-out American consumer is also trouble for the rest of the world.
That sent the euro to a fresh one-month trough beneath $1.31 <EUR=>. It later rebounded to $1.3155, down 0.3 percent.
"The retail sales number seems like a bearish number for the U.S., but it's actually probably more reflective of a bearish signal for those who export a lot to the United States," said David Watt, senior currency strategist at RBC Capital Markets in Toronto.
"Granted it's a not a great story for the U.S. dollar, but it's actually more negative for other currencies."
Standard & Poor's move to cut Greece's sovereign debt rating also weighed on the euro, sending it at one point to a near six-week low at 116.58 yen <EURJPY=> and boosting the chances that the European Central Bank will cut interest rates on Thursday from 2.5 percent to 2 percent.
The Russian ruble <RUB=> fell to a six-year low against the dollar and record low against the euro <EURUB=> as authorities quickened the pace of devaluation amid falling oil prices and soaring capital outflows. [ID:nLE384040].
A rise in investor risk aversion also sent the New Zealand <NZD=> and Canadian <CAD=> dollars tumbling against the U.S. currency, as both are seen as vulnerable to falling commodity prices and slowing growth.
The safe-haven appeal of the yen, meanwhile, got a boost, with the dollar at one point falling to 88.62 yen <JPY=> as U.S. stocks fell and fears of new banking credit losses grew. It last traded at 89.02 yen, down 0.1 percent from Tuesday.
Adding to bearish sentiment on the euro were reports, later denied, that Irish Prime Minister Brian Cowen said IMF help may be needed if Ireland's economic downturn worsens.
The IMF also weighed in, saying there was no reason to think that Ireland will need IMF financing. [ID:nLE197032].
Concerns over the single currency bloc's economy and public finances mounted after Spain and Portugal became the third and fourth euro zone countries, after Greece and Ireland, since last week to be warned by S&P that their credit rating is under threat from the global financial crisis.
Also on Wednesday, the German Federal Statistics Office said the country's economy likely contracted by between 1.5 percent and 2 percent in the final three months of 2008. See [ID:nLE186260].
"The market is underestimating the extent of the recession in the euro zone, which is being made worse by the lack of, or at least the very slow, policy response," currency strategists at BNP Paribas wrote in a note.
Alan Ruskin, chief international strategist at RBS Greenwich Capital in Greenwich, Connecticut, said a period of divergence within the 16-country euro zone likely ensures that rates will go lower and stay there longer than once thought.
That, he said, may add to "uncertainty on the viability of the common currency for long-term investors, including reserve managers" and suggests more losses against the dollar.
(Additional reporting by Wanfeng Zhou; Editing by Chizu Nomiyama)
Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
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 12 Mar 2018 A 17:00 US- 3-Yr Auction Tue 13 Mar 2018 A 10:00 DE- ZEW Survey AA 12:30 US- CPI A 17:00 US- 10-Yr Auction Wed 14 Feb 2018 AA 12:30 US- Retail Sales A 12:30 US- PPI A 14:30 US- EIA Crude A 17:00 US- 30-Yr Auction Thu 15 Mar 2018 A 12:30 US- Weekly Jobless A 12:30 US- Philly Fed, Empire PMI A 12:15 US- Industrial Production Fri 16 Mar 2018 A 10:00 EZ- final HICP A 12:30 US- Housing Starts/Permits A 14:00 US- prelim Univ of Mich
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.