User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday May 22, 2009 - 10:26:06 GMT
Trade the News Staff - www.global-view.com/forex-services/TTN/

Share This Story:
| | Email

Forex Blog - European Market Update: Sovereign rating concerns weigh upon USD, GBP currencies

Today 05:59am EST/09:59am GMT

European Market Update: Sovereign rating concerns weigh upon USD, GBP currencies

*** ECONOMIC DATA ***

- (TT) Taiwan Apr Unemployment Rate 5.8% v 5.8%e

- (SZ) Swiss Apr Money Supply M3 Y/Y: 3.8% v 3.4% prior

- (IT) Italian Mar Retail Sales M/M: 0.1% v -0.2%e; Y/Y: -5.2% v -0.9%e; Lowest YoY reading since series began in 1997

- (UK) Q1 Prelim GDP Q/Q: -1.9% v -1.9%e; Y/Y: -4.1% v -4.1%e

- (UK) Index of Services 3M/3M: -1.2% v -1.2%e



*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***

- In equities: Following Thursday's declines, equity futures opened to the positive side on light/mixed corporate news. On the open, European bourses snapped a negative streak with the FTSE, DAX and CAC opening between +0.25% to 0.60%. Following disappointing FY08/09 earnings out of British Airways [BAY.UK], shares underperformed to the downside, other large cap carriers including Air France [AF.FR] and Lufthansa [LHA.GE] underperformed their respective indicators. Analyst upgrades from Goldman on miners/basic resource names sent those shares higher in first trades, Kazakhmys [KAZ.UK] and Rio Tinto [RIO.UK] outperforming following upgrades. Goldman commentary on the Euro steel sector, making cautiously positive statements sent ArcellorMittal [MT.NV] and ThyssenKrupp [TKA.GE] higher in first crosses. Buying enthusiasm quickly waned and by 3:30EST both the CAC and DAX had surrendered all their gains, moving into negative territory. Weakness at this time developed in pan-European automotive names following comments seen pre-market out of the Washington Post regarding a bankruptcy of GM and other concerns regarding OPEL bids and the potential changes in the European car market makeup. By 3:45EST all three major equity bourses had surrendered opening gains and had moved into negative territory. This equity weight was short-lived, however, as markets bounced positive on an extremely choppy session. Once turning positive, all markets continued that flow, in light volume, printing new session highs past 4:15EST. UK provision Q1 GDP data at 4:30EST saw markets pare some gains prior to the number as traders positioned themselves for the second of three Q1 readings. Provisional reading at -1.9% as expected accelerated the rally post 4:30EST. Into the 5:00EST hour equity markets have held on to gains in positive territory while trending off their best levels. Trading themes in this Friday morning session would be characterized by light volume, and choppy price actions ahead of a long US weekend.

***Reminder: US equity markets will be closed on Monday, May 25, 2009 in observance of Memorial Day Holiday

- In equities -GlaxoSmithKline [GSK] Company potentially involved in $1.9B IRS dispute - WSJ. IRS is said to object to company's tax transaction with a Swiss subsidiary. || Marston's [MARS.UK] Reported H1 Net £13.2M compared to estimates of £7.8M. Rev came in at £307.5M above the £295M consensus. || Bank of Ireland [BKIR.IR] Guaranteed Irish banks to be asked to establish subsidiaries to administer toxic loans being transferred to Nama according to a Irish Time articles. ||


- Speakers: BoJ Shirakawa commented that Japan's Q2 GDP to show "sharp" improvement on Q1 decline of -15.2%. He noted that the Japanese economy was performing in line with BoJ expectations. Capital increase in Japanese banks was an important step for stabilization. BOJ noted that the risk of an economic free fall was fading from previous levels but Japanese economic pick up would be dependent on demand trends. The drop in wages could weigh upon consumption. ||| India Central bank: No clear sign of turnaround in export demand.- If conditions remain calm, could experience economic turnaround by end of 2009. As economic growth picks up, liquidity will have to be absorbed; such challenge is not as daunting for India compared to other countries. New Gov't might pressure more fiscal stimulus and large Gov't borrowings run against central bank's effort to keep interest rates low. Can manage Gov't borrowing in an orderly manner ||| OECD's Gurria noted that some economic indicators have demonstrated improvements but added the risk that the economic crisis could be prolonged without fiscal discipline. He did the US economic recovery could be faster than any one taking place in Europe. He also commented that he saw no justification for UK sovereign rating cut at this time |||


- In Currencies: Continued concerns over the implications of a potential US sovereign rating downgrade continued to weigh upon the USD sentiment. Dealers noting that next weeks Treasury auction size and rating fears have scare away any prospect of any near-term dollar recovery. One dealer noted that the recent trend of Equity-dollar price movement correlation might shift to towards a stronger Bonds/dollar correlation. The EUR/USD approached the 1.4000 level during the session,a level last tested back on Jan 2nd. The dollar's soft tone lingered over the concerns that the "AAA" US sovereign rating could come into question thanks to the revisions to the deficit projections. On Thursday, the Congressional Budget Office (CBO) commented in early NY that its March economic forecast was too optimistic and that any economic recovery could take several years. CBO also saw US jobless rate peaking above 10% in 2010 from the current level of 8.9%. Currency and fixed-income dealers noted of the potential of higher US budget deficits from this revision in growth. This brought back comments from May 11th when the Obama Administration revised its forecast for the 2009 federal deficit to $1.84T from $1.752T, while the 2010 deficit was also nudged higher, to $1.258T from $1.171T. Dealers have noted that comments from Fed Chairman Bernanke talking up the dollar were presumably designed to help fund massive deficits in the wake of the revisions, hence the dollar dilemma. The USD/JPY briefly tested below the 94.00 level where some good buying surfaced (Chatter of Far Eastern names). USD/CHF was softer and tested below the 1.09 level.

- The GBP was also softer against the major pairs due to reports that U.K. Treasury refused to release stress tests on RBS and Lloyds that the Financial Services Authority (FSA) carried out earlier this year. Reportedly the UK Treasury commented that disclosure of the results "at this time may lead to uncertainty in financial markets, either in relation to specific institutions or more generally," GBP/USD was off over 100 pips at one time to test 1.5760 before consolidating its losses.


-In Fixed Income: Bunds have under performed this morning, losing out most in the game of catch up with Treasuries, which were aggressively sold yesterday post NY Fed intervention. The yield on the Bund is higher by about 7bps at 3.51%, but the Bund is now just 18bps cheap relative to the 10y Note compared to 29bps on Thursday. Gilts are still weaker, however, with the 10y Gilt is now 35bps cheap relative to the 10y Note compared to 29bps yesterday. European Interbank rates increased for the third successive day, with 3-Month Euribor higher by another 0.7bps at 1.259%.

- I n Energy: Reportedly Russia will not attend the May 28th OPEC meeting

- Credit Crisis: Business Week article noted that Pension Insurer's might need aid as corporate bankruptcies increase . The article noted that the government agency that insures the pensions of 44M Americans has amassed a record $33.5B deficit, triple what it was six months ago.


*** NOTES ***

- Moody's: Comfortable with US AAA now but not guaranteed forever. Dealers noting that there are clear long-term pressures.

- US bank regulators close Bank United in biggest bank failure this year.

- Washington Post reported that the Obama administration could send GM into bankruptcy next week. However, US Treasury commented that there were no plans to send GM into bankruptcy ahead of Jun 1 deadline.

- US Pension Insurer may need aid as corporate bankruptcies increase as it accumulates $33.5B deficit

- BoJ leaves its interest rates and upgrades view on economy and says its likely to stop deteriorating. It expands it acceptance of collateral

- Fed's Plosser (non voter) noted that the economy not yet ready for an interest rate hike yet but will have to at some point. US default chances remote.

- Japans Fin Min Yosano: Not planning to intervene in FX markets


- Looking Ahead:

- 8:30 (CA) Canadian Mar Retail Sales M/M: % v 0.5%e; Retail Sales less Autos M/M: % v -0.1%e

- (RU) Russian Apr Unemployment rate: % v 10.2%e

- (RU) Russian Apr retail Sales M/M: % v 5.6% prior, Y/Y: % v -5.2%e

 

Legal disclaimer and risk disclosure

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.



 

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."



Elevate Your Trading With The Amazing Trader!

The Amazing Trader includes:
  • Actionable trading levels delivered to YOUR charts in real-time.
  • Live trading strategy sessions.
  • Market Updates with Trading Tools.

Register To Test Your Amazing Trader


Trading Ideas for 23 October 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

Tue 24 Oct
All Day flash PMIs
Wed 25 Oct
01:30 AU- CPI
08:00 DE- IFO Survey
08:30 GB- GDP
14:00 CA- BOC Decision
14:30 US- EIA Crude
Thu 26 Oct
11:45 EZ- ECB Decision
12:30 US- Weekly Jobless
14:00 US- Pending Homes Sales
Fri 27 Oct
12:30 US- GDP
14:00 US- final Univ of Michigan

Forex Trading Outlook


Potential Trading Opportunities


  • POTENTIAL PRICE RISK: Medium Tue-- All Day Global flash PMIs. First good look at October economic performances.



  • POTENTIAL PRICE RISK: HIGH Wed-- 01:30 GMT AU- CPI. Top Inflation indicator.

  • POTENTIAL PRICE RISK: HIGH Wed-- 08:00 GMT DE- IFO Survey. Top German indicator.


  • POTENTIAL PRICE RISK: HIGH Wed-- 14:00 GMT CA- BOC Decision. No Policy Change Expected.


  • POTENTIAL PRICE RISK: Medium Wed-- 14:30 GMT US- EIA Crude. Top Weekly WTI Statistic.



John M. Bland, MBA
co-founding Partner, Global-View.com

EXCLUSIVE: Global-View Daily Trading Chart Points Updated

EXCLUSIVE: Global-View Free Forex Database updated




TRADER ADVOCACY ARTICLES

Trader's Advocate Articles..

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.

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105