User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday March 23, 2009 - 09:38:38 GMT
Reuters - www.reuters.com

Share This Story:
| | Email

FOREX NEWS-Dlr falls as toxic asset plan boosts sentiment

Mon Mar 23, 2009 5:28am EDT

* Dlr continues to sag as U.S. toxic asset plan eyed

* Yen hits 5-mth low vs euro, 2-1/2 mth lows vs Aussie, kiwi

* ECB's Trichet: cenbank reluctant for rates to fall to zero

* U.S. to put in $75 bln-$100 bln into toxic asset programme

(Changes byline, dateline (previous Tokyo) recasts, updates quotes and prices)

By Kirsten Donovan

LONDON, March 23 (Reuters) - The dollar continued to sag on Monday as risk appetite improved on a U.S. plan to remove toxic assets from bank balance sheets after details of the scheme were revealed.

The Federal Reserve's plan to purchase longer-term Treasuries, which was announced last week, also continued to weigh on the greenback on concerns that the policy could lead to an oversupply in the world's main reserve currency.

Stock markets around Asia rose and European bourses opened higher as investors eyed plans by Treasury Secretary Timothy Geithner to purge U.S. banks of "toxic" assets.

Geithner is set to speak at 1245 GMT but a U.S. official gave details of the plan beforehand, saying the government would put in $75 billion to $100 billion from its bailout fund to partner with private investors and buy troubled assets at the heart of the financial crisis. [ID:nWEQ000809] [ID:nSP424881]

"Stocks are opening up so risk appetite is on the up, it seems Geithner has managed to instill a positive note in terms of the broad market this morning," said Rabobank strategist Jeremy Stretch.

"However, we need to hesitate because there are still some gaps in the details...but for now markets are buying into the risk recovery story...and that's a short-term negative for the dollar.

The dollar fell against a basket of currencies .DXY to 83.3, with investors continuing to favour currencies whose central banks had interest rates above zero and look unlikely use quantitative easing to get their economies moving, such as the euro, Australian dollar and Norwegian crown.

However, the pound also got a lift early on Monday due to the dollar's broader weakness.

The yen also slipped, falling to its lowest in five months versus the euro, and dropping more than 1 percent against higher-yielding currencies.

The euro <EUR=> rose 0.4 percent to $1.3644, after hitting a 2-1/2 month high at $1.3739 on EBS last week, while the pound GBP gained 0.77 percent to $1.4578. The Aussie dollar <AUD=> was the biggest gainer against the U.S. currency, up 1.54 percent at $0.6971, having hit a 2-1/2 month high of $0.7003.

Against the yen, the euro rose 1 percent to 131.54 yen <EURJPY=R>. Earlier, it hit its highest since late October at 131.99 yen. Japan's markets were shut on Friday for a national holiday.

The yen's broad slide lifted the Australian dollar to a 2-1/2 month high at 67.29 yen <AUDJPY=R> and the New Zealand dollar up a similar amount to 54.51 yen, having also hit 2-1/2 months highs earlier.

ECB WARY OF ZERO RATES

European Central Bank chief Jean-Claude Trichet signalled that the central bank remained wary of interest rates falling to zero in a newspaper interview published on Monday, in contrast with the U.S. and Japan, where rates are already almost zero. [ID:nLM557188]

Trichet said the ECB could cut rates further, from a record low of 1.5 percent, but there were drawbacks with policy rates at zero and the central bank did not think it would be appropriate.

The ECB has become increasingly isolated among major central banks as it has not moved beyond interest rate cuts to forms of quantitative easing to boost the recession-hit region.

The Bank of England has already begun buying government bonds to pump money into the system and the Bank of Japan last week raised the amount of government bonds it plans to buy.

The Fed's decision last week saw the dollar notch up its steepest weekly fall since 1985 against the basket of currencies.

"The question is whether the QE measures announced by the Fed last week and the toxic asset plan to be revealed today will be perceived by markets as having a significant chance of success," Barclays Capital strategists said in a note.

The Fed's move into QE is targeted at lowering all rates to avert deflation and stimulate the economy. It is also aimed at making it less profitable to hold cash and Treasuries, pressuring investors to put money into riskier but higher-yielding assets such as corporate bonds.

The U.S. Treasury will auction close to $100 billion of new Treasuries this week.

"This will be the first test of the Fed's ability to keep Treasury prices supported, against a backdrop of rising supply... For the dollar, the level of participation by foreign investors, as reflected in the indirect bid, will be of particular interest," Barclays said. The dollar firmed 0.4 percent to 96.25 yen <JPY=>, but was still well down from a four-month high of 99.69 hit earlier in March. It dropped to a one-month low of 93.55 last week. (Reporting by Kirsten Donovan; Editing by Toby Chopra)

© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.

 

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

Tue 17 July 2018
AA 08:30 GB- Employment
A 13:15 US- Industrial Production
AA 14:00 US-Powell Testimony
Wed 18 July 2018
AA 08:30 GB- CPI
A 12:30 US- Housing Starts/Permits
AA 14:00 US-Powell Testimony
Thu 19 July 2018
AA 1:30 AU- Employment
AA 08:30 GB- Retail Sales
A 14:30 US- EIA Crude
A 12:30 US- Weekly Jobless
Fri 20 Jun 2018
A 12:30 CA- CPI/Retail Sales


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.

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.


pic

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 Global-View.com.

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

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.

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