User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday January 19, 2005 - 21:56:30 GMT -

Share This Story:
| | Email

Euro Breaks Below 1.30 On Positive US Economic Data

DailyFX Fundamentals 01-19-05

By Kathy Lien, Chief Strategist of

· Euro Breaks Below 1.30 On Positive US Economic Data
· Stronger Labor Market Data Helps Sterling Rally Once Again
· Japan Keeps Assessment Of Economy And Rates Unchanged


The Euro is trading at a 2 month low against the US dollar after having broken below the psychologically important 1.30 level. Better than expected US economic data and more optimistic comments from Fed Presidents have given bulls a good reason to rally the dollar for the fifth consecutive trading day. Tomorrow is President Bush’s second inauguration, which could bring modest event risk. For the time being, the rally in the dollar is fairly clear. However, we continue to caution against becoming overly optimistic. Although the rebound in the dollar since the beginning of year has been fairly impressive, there continues to be talk about possible distortions in yesterday’s TIC data. Taking a closer look at the data, we see that November is historically a strong month for portfolio flows. The current influx of foreign investments is only $7.3 billion higher than was reported in November 2003. Yet, the trade deficit is $20 billion higher for the same benchmark period. This means that over the medium term, the dollar needs to continue to depreciate in order to fix the imbalances. Over the short-term though, the strong headline number has turned the funding of the deficit into a back burner issue. In an interview with CNBC, Warren Buffett continues to be dollar bear. If you recall, he has been shorting dollars since 2002. More interestingly though is the fact that he is finding it difficult to identify stocks that are good buying opportunities. Instead, he is now looking at businesses that make their money in other currencies or stocks that are denominated in other currencies. As a billionaire investor who manages one of the world’s biggest funds, Buffett’s trading activities carry significant weight in the markets. This sentiment may be more widespread than the market may expect. The November TIC data indicates that US investors have increased their purchases of foreign stocks during the month of November, making overall net equity flows actually negative for the month. If this trend continues, portfolio flows could take a sharp plunge in December. Although the market appears to have buried the hatchet on the deficit for the time being, it could easily become a skeleton in the closet that will come back to haunt us sooner rather than later.


Generally better than expected US economic data has helped the dollar rally to 2-month highs against the Swiss franc. Jobless claims for the week ending January 15 fell by the biggest amount in 3 years to 319k from 367k. The strong report has certainly boosted the outlook for January payrolls and the labor market as a whole. The housing market continues to chug along with housing starts increasing 11% in the month of December, which was the biggest rise in 7 years. The current level of interest rates is still attractive to home buyers, and thus far, the housing bubble continues to expand. Although headline consumer prices dipped last month, core prices continue to grow at a steady monthly pace of 0.2%. Headline CPI fell in tandem with PPI released last week reflecting the correction in oil prices. Overall, the economy appears to be doing fairly well. The Beige book report released this afternoon draws a similar conclusion of improving consumer spending, manufacturing and service sector, housing and labor market performance. However, as evidenced by today’s CPI report, inflationary pressures remain relatively subdued at this point.


The pound rallied against the dollar and the euro for the second consecutive day. Adding a bit more uncertainty to the outlook for UK monetary policy was more encouraging labor market data released this morning. Average earnings increased to 4.2% while the number of individuals claiming unemployment benefits fell a more than expected 6.2k. The UK continues to enjoy a buoyant labor market, which follows the up-tick in inflation that was reported yesterday. These reports have helped to quell speculation about a possible interest rate cut by the Bank of England next month. Although the central bank has become increasingly dovish and the minutes from the last meeting indicated that at least 2 members wanted to discuss easier monetary policy, mixed data over the past few weeks will make it difficult for the BoE to react preemptively.


As expected, the Bank of Japan kept interest rates unchanged once again at their monetary policy meeting last night. They also left their assessment of the economy intact, noting that the Japanese economy continues to recover though signs of weakness in production are prevalent. Japanese Finance Minister Tanigaki and Bank of Japan Governor Fukui both expressed modest concern about yen appreciation. Tanigaki warned of the possibility of official action if FX activity becomes “abnormal” while Fukui stressed the need for stability in FX rates. However, with the G7 meeting scheduled to be held in a few weeks, intervention is still unlikely to occur unless there are sharp spikes lower in USDJPY.


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

Mon 10 Sep 2018
AA 08:30 GB- GDP, Trade, Output
Tue 11 Sep 2018
AA 08:30 GB- Employment Decision
A 09:00 DE- ZEW Survey
Wed 12 Sep 2018
A 12:30 US- PPI
A 14:30 US- EIA Crude
A 18:00 US- Beige Book
Thu 13 Sep 2018
A 1:30 AU- Employment
AA 11:00 GB- Bank of England Decision
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
AA 12:30 US- CPI
Fri 14 Sep 2018
A 08:30 GB- GDP
AA 12:30 US- Retail Sales
A 13:15 US- Industrial Production
AA 14:00 US- prelim University of Michigan

John M. Bland, MBA
co-founding Partner,

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.


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

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 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 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.



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