FOREX NEWS-U.S. dollar rallies versus pound on UK bank woes
Tue Jan 20, 2009 4:01pm EST
* UK bank woes add to broad risk aversion
* Dollar briefly pares gains vs euro after Obama's speech
* Euro drops to 6-week low vs dollar on recession fears
* Stronger-than-expected German ZEW fails to lift euro (Recasts, adds comments, updates prices)
By Vivianne Rodrigues
NEW YORK, Jan 20 (Reuters) - The U.S. dollar hit a 7-1/2-year peak against the pound on Tuesday as losses in the UK banking sector raised worries about the country's economy.
The dollar also rose against the euro on concerns about a deepening euro-zone recession.
Optimism about newly inaugurated U.S. President Barack Obama's stewardship of the economy also boosted the dollar. The currency pared gains, though, when Obama did not provide details on economic crisis measures in his address.
Sterling fell about 3.7 percent against the dollar and was on track to post its biggest daily drop since 1992 after the Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz) on Monday announced the biggest losses in UK corporate history. [ID:nLJ123391].
"The market is afraid that the UK will turn into the next Spain or Greece," said Kathy Lien, director of currency research at GFT Forex in New York.
"Over the past few months, they have been working overtime to inject more stimulus into the economy, but the more that they spend, the worse impact it has on the UK's fiscal position."
Standard & Poor's on Monday downgraded Spain's credit rating, following a similar move on Greece last week. [ID:nLJ632098]
A European Commission report on Monday that forecast the euro-zone economy would shrink 1.9 percent in 2009 [ID:nLJ682215] also added to concerns, overshadowing a bigger-than-expected improvement in the German ZEW economic sentiment survey on Tuesday [ID:nLK468724].
Late in New York, sterling <GBP=> fell 3.7 percent to $1.3921 after touching $1.3860, its weakest level since mid-2001. A smaller-than-forecast decline in the UK inflation rate for December did little to stem the slide. [ID:nONS004006].
The euro <EUR=> last traded 1.7 percent lower at $1.2880, having tumbled as low as $1.2857, according to Reuters data, its weakest level since Dec. 9.
Analysts said the European Central Bank may have to cut interest rates further after delivering a half percentage point reduction to 2 percent last week.
Elsewhere, the dollar rose 1.3 percent against the Swiss franc to 1.1478 francs <CHF=>. The Australian <AUD=> and New Zealand <NZD=> dollars slid 3.3 percent and 4.3 percent respectively against the U.S. currency.
"It is not going to be a gangbuster move but our view is that the U.S. economy is the first that is going to solidify and then to recover," said Brian Belski, a U.S. sector strategist at Merrill Lynch. "Dollar strength is here to stay."
The dollar also rose 0.9 percent against its Canadian counterpart to C$1.2654 <CAD=> after the Bank of Canada cut rates by half a percentage point to a 50-year low of 1 percent. (Additional reporting by Nick Olivari in New York; Editing by Leslie Adler)
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.
Tue 19 June 2018 A 12:30 US- House Permits/Starts Wed 20 June 2018 A 14:00 US- Existing Homes Sales A 14:30 US- EIA Crude Thu 21 June 2018 AA 11:00 GB- Bank of England Decision A 12:30 US- Weekly Jobless Fri 22 June 2018 AFlash PMIs
John M. Bland, MBA co-founding Partner, Global-View.com
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.
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.