US Fed to print money. This unexpected announcement from the FOMC
meeting this morning, which will see the Fed purchase US$300b of US treasury
bonds during the next 6 months, and pay for them with newly created money, sent
a shock wave through currency and rates markets. US 10 year treasuries gapped
higher, the yield down 50bp to 2.47%. The USD currency gapped down 2.2%, and
gold put in a 5% rally after weakening during Europe's afternoon. US equities responded too, the S&P500 jumping
2.7% on the news. While the markets focused mainly on the Fed's planned
treasuries' purchases, also of interest is the intended expansion of their
balance sheet by around 60%. Around $750b of mortgage-backed securities will
also be purchased, and the TALF's scope will be expanded to include distresses
assets. The US Fed's move today is stimulatory for risk, and the global ripple
effects may persist for several weeks.
Similarly to most risk-currencies, the NZD
was subdued until the Fed announcement, ambling sideways around 0.53. The news
sent it soaring to 0.5460, where it sits currently.
AUD ranged around 0.66 for most of the European
session, the Fed-induced spike sending it to 0.68, with that level holding.
AUD/NZD, which was looking toppish from 1.2545 before the news, fell a cent to
1.2410, but couldn't break that key support.
EUR had already rallied from around 1.30 to 1.31 on
a short squeeze around Europe, FOMC pushing it to just under 1.35. USD/JPY
fell from 98 to 95.65, and is consolidating above 96.
FOMC maintained rates at 0-0.25%, but eased monetary policy via additional
credit/quantitative easing. The Fed has massively increased the credit easing
programme by announcing its intention to purchase up to an additional $750
billion of mortgage-backed securities, bringing total purchases planned for
this year to $1.25 trillion. They also plan to double purchases of agency debt
to $200bn. Most important was the Fed's announcement that it intends to buy up
$300bn of longer-term Treasury securities over the next six months - genuine
quantitative easing or printing money. On the prospects for economic recovery,
the committee expected "a gradual resumption of sustainable economic
growth", significantly more downbeat than the previous statement which had
pinned down the timing of recovery to the second half of 2009. On inflation,
"the Committee sees some risk that inflation could persist for a time
below rates that best foster economic growth and price stability in the longer
term", a repeat from the last statement.
US CPI inflation was 0.4% in February. Higher petrol prices were the main driver of
higher headline inflation, while food prices fell. Core inflation was stronger
than expected at 0.2%, 1.8% yr
US Q4 current account deficit was -$133bn, a very sharp improvement over Q3 and the
smallest deficit since March 2004.
UK Bank of England March MPC minutes showed unanimous decisions to cut 50bp and buy
GBP75bn of assets. Concern that cutting rates too low could be
counterproductive to the goal of expanding lending leads us to conclude that
0.50 is the BoE's desired terminal rate.
UK unemployment claimant count
jumped 134k, the most since
records began in 1971 and much weaker than markets expected. Jan was revised up
from 74k to 94k. The claimant-count unemployment rate rose to 4.3% in Feb, up
from 2.5% a year ago. Average earnings including bonuses over the Nov-Jan
period were 1.8% higher than the same period a year earlier, a spectacular
decline from the 3.1% growth recorded in the Oct-Dec period, considering the
overlap of two months out of three. Average earnings excluding bonuses
continued their 3.5% annual pace of growth.
We had been calling for
the week-long corrective rally in NZD to extend to around 0.54 before running
out of steam, and today we got that extension (although we admit to being as
surprised as anyone on the catalyst). Whether it does exhaust itself here is
questionable, though. Most likely, the global ripple effects of the Fed's move
will continue to support NZD in the short-term, and we will watch for signs of
a turning point before adopting a negative-NZD bias again. Today's suggested
(and low-confidence) range is 0.54 to 0.55.
Country Release Last Forecast
19 Mar Aus
Q1 WBC-ACCI Sur of Indust Trends 40.4 â
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."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
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.