User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday June 3, 2009 - 11:42:12 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Asian comments lift dollar from 2009 lows vs euro

Wed Jun 3, 2009 7:10am EDT

* Dollar climbs on Asia comments on FX reserves

* Euro/dollar, cable reverse climb to 2009 highs

* Asian countries seen continuing to buy U.S. Treasuries

(Releads, adds comment, details, updates throughout)

By Naomi Tajitsu

LONDON, June 3 (Reuters) - The dollar on Wednesday rebounded from its lowest levels this year against the euro after Asian monetary sources said they would keep buying U.S. Treasuries even if the U.S. credit rating were to be downgraded.

The remarks by sources from China, Japan, India and South Korea [ID:nSP412010], which were compiled by Reuters rather than being a joint statement, helped to stem recent selling that has driven the dollar's trade-weighted index .DXY to its lowest this year and down more than 7 percent since the start of May.

Traders viewed the comments as an expression of support for dollar-denominated assets from the nations which control about half of the world's currency reserves. Dollar weakness would erode the value of U.S. investments.

"It is highly rational that you would have comments like these from the main reserve holders in Asia -- they are the people with a natural interest in providing supportive comments for the dollar," said Simon Derrick, head of currency research at Bank of New York Mellon in London.

"It is in their interests for the dollar to restabilise or strengthen ... They are sending a strong signal to the market that they are not going to dump dollars."

The euro pulled away from a five-month high it had hit in early trade, and selling accelerated after the Reuters story was published. Sterling retreated from a seven-month high versus the U.S. currency.

By 1056 GMT, the euro traded 0.4 percent lower at $1.4247, after hitting a session low $1.4179 and falling from $1.4337 hit in early trade, its strongest since December. A 1.0 percent fall in European shares .FTEU3 also helped to push the euro lower.

The dollar index, which tracks the currency's moves against a basket of six currencies, rose as much as around half a percent after the comments, keeping just above its lowest level of the year hit on Tuesday.

Some of the dollar's slide in past weeks has been attributed to speculation that the U.S. credit rating may be downgraded, a move which may prompt nations to diversify their foreign reserves away from U.S. Treasuries.

The comments by the Asian monetary sources came after a visit by U.S. Treasury Secretary Timothy Geithner to China, the world's biggest holder of Treasuries, during which he assured Beijing its U.S. investments were safe because Washington is committed to a strong dollar policy.

Analysts said that the dollar-positive comments had prompted traders to lock in profits against the suffering U.S. currency, and that it might help to stem its recent selling for the time being but was unlikely to change the trend.

"The market is becoming somewhat stretched on short dollar positions as there has been decent sized buying in euro and sterling, so traders were looking for a reason to calm things down," said Geoffrey Yu, currency strategist at UBS in London.

Sterling <GBP=D4> fell as low as $1.6515 after the report, tumbling from $1.6664 hit in early European trade for the first time since October.


Economists say the possibility of a U.S. credit rating downgrade is highly unlikely, but none of the Asian officials dismissed such a possibility, while adding that such a move would have limited impact on their reserve management policy.

Analysts said that the comments were significant, given that the come as a handful of countries around the world have questioned the dollar's role as the world's reserve currency.

"This is significant. It looks like a definite effort to try and shore up the dollar ... and is a contrast to the kind of noise made by Russia yesterday about a new supra-national currency," said Daragh Maher, senior currency strategist at Calyon in London.

On Tuesday, Russian President Dmitry Medvedev said the world's biggest emerging markets may discuss the idea of a supranational currency given a changing perception of the U.S. dollar due to weakness in the country's economy.

Investors offered limited reaction to a final reading of euro zone GDP, which showed that the economy shrank 4.8 percent in the first quarter, its worse ever contraction. [ID:nL3159042].

They also brushed off a reading of services PMI in the region, which was revised up to a seven-month high of 44.8 in April from an initial reading of 43.8. Forecasts had been for 44.7 [ID:nLAG003476].

Given focus on whether global investors will continue to flock to U.S. Treasuries, investors awaited testimony from U.S. Federal Reserve Chairman Ben Bernanke, who will speak before the House of Representatives Budget Committee at 1400 GMT.

The market is waiting for clues on whether the Fed will increase or speed up purchases of longer-dated Treasuries to keep down interest rates.

Traders also awaited figures on the U.S. employment sector later in the day. Challenger, Gray & Christmas Inc. releases its report on job cuts in May at 1130 GMT, while the ADP will release its May employment report at 1215 GMT.

(Additional reporting by Swaha Pattanaik and Jamie McGeever; Editing by Victoria Main)

© Thomson Reuters 2009. 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 31 July 2018
AA JP- Bank of Japan
A 06:00 DE- Retail Sales
A 09:00 EZ- flash HICP/GDP
AA 12:30 US- Core PCE Deflator
A 14:00 US- CB Consumer Confidence
Wed 1 Aug 2018
A Final Mfg PMIs
AA 12:15 US- ADP Private Payrolls
A 15:00 US- EIA Crude
AA 18:00 US- Federal Reserve Decision
Thu 2 Aug 2018
AA 11:00 GB- Bank of England Decision
A 13:30 US- Weekly Jobless
Fri 3 Aug 2018
A Final Services PMIs
AA 12:30 US- Employment
A 12:30 US/CA- Trade

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