User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Saturday July 18, 2009 - 10:54:41 GMT
Trade the News Staff -

Share This Story:
| | Email

Forex Blog - Trade The News Weekly market update

Trade The News Weekly market update

- Quarterly results from corporate
America provided firm upward momentum as earning season hit its stride this week. US equity indices made solid gains after two consecutive down weeks, with a strong updraft on Monday in anticipation of blowout results from Goldman Sachs and then another big leg up on Wednesday on hopes for more good news out of JP Morgan, with an assist from Intel's strong quarter and positive industrial performance data. That morning the July Empire Manufacturing survey came in dramatically better than expected (-0.55 v -5.00e) while the Fed's June Industrial Production data crept even closer to positive. Indices leveled off on Friday as Bank of America and Citi offered tepid results. Drama at CIT and Congressional negotiations over healthcare, including proposals for 5% wealth tax, didn't manage to put a damper on the overall market, but will doubtlessly remain hot stories in the future. Brighter economic outlooks from Singapore, China's PBoC and the Japanese cabinet helped drive commodity gains; copper rose 9.5% on the week, finishing at its best level in a month. Spot gold rose 2.8% to finish the week around $937, after hitting a two-month low just last week. Crude oil reversed its recent bearish trend gaining almost 6% on the week, ending above $63. For the week, on the strength of earnings reports, the DJIA rose 7.3%, the S&P500 jumped 6.9% and the Nasdaq climbed 7.5%.

- Goldman Sachs and JP Morgan reported blow-out second quarter results that crushed analysts' estimates. JP Morgan reported a better than expected profit despite big charges for retuning TARP funds and paying the FDIC's special assessment fee. Investment banking activities at the two firms drove the big gains: Goldman said trading and investment revenues were up a whopping 93% y/y and 51% q/q, while JP Morgan CEO Dimon said that investment bank fee revenue of $2.2B was a record for his firm (or for anybody in the business in one quarter). Analysts and commentators spent the rest of the week discussing the firms' renewed willingness to take on risk to drive big profits. Goldman's CFO offered a veiled commentary on his firm's future direction, stating that the company is talking with regulators about altering its financial holding status to "allow additional activities," prompting some to wonder just how dead the investment banking model really is.

- Earnings from Bank of America and Citigroup on Friday were a stark contrast to results from Goldman and JP Morgan. Citi's earnings were something of a mirage: on the one hand, the bank racked up a $4.2B profit in the quarter thanks to the sale of Smith Barney to Morgan Stanley. But after backing out these gains, quarterly losses were only slightly smaller than expected. Bank of America's results were a bit above expectations. Loss provisions, write downs and charge offs continue to rise at both companies, with BoA's non-performing assets rising significantly on a sequential basis (the firm put special emphasis on trouble in commercial real estate) and Citi's total write downs rising to $6.57B.

- The deteriorating situation at CIT provided a background of tension for the big quarterly reports this week, as the company struggled to arrange financing for major debt payments ($1B to 3B, according to various reports) due in mid-August. On Tuesday the government decided CIT was not worthy of a bailout, leaving any rescue to the private sector. The Treasury is evidently making an example of CIT, stating that a "high threshold" exists for exceptional government aid. At least one analyst believes this is a good thing: PIMCO's Crescenzi said markets are taking the situation in stride and their reaction shows stability returning to the system. There were reports on Friday that CIT is negotiating with JP Morgan and Goldman Sachs for a lifeline, although there has been no confirmation of these reports. CNBC reported that CIT debt holders may be leaning toward a 'debtor in possession' scenario, and a bankruptcy announcement could come over the weekend.

- Dow components General Electric and Johnson & Johnson both reported Q2 earnings that were a bit above estimates. On the conference call, JNJ's CFO said the results were among their most challenging ever for annualized comparisons due to the loss of patent coverage for several major drugs. JNJ reiterated its full-year earnings outlook, while GE, which has discontinued giving guidance, talked a lot about its outlook on the conference call, noting that its FY09 forecast for non-finance related profits is "little changed" and warned that equipment revenue would be down 10-15% y/y in 2010. CEO Immelt insisted that GE Capital is profitable, and also said he is seeing big improvements in capital markets. GE stock traded down 6% on Friday following the report.

- Intel reported earnings that were more than double Wall Street's expectations, while revenue significantly outperformed the consensus view. The firm said its results reflect improving conditions in the PC market, confirming the many reports suggesting improvement for the sector over the last six to eight weeks. IBM and Google both managed to beat Wall Street's earnings expectations, although revenue results at both firms were lukewarm. Big Blue remains positive looking forward, raising its 2009 earnings forecast and offering a sanguine FY10 outlook. Google managed to grow margins, meet revenue expectations and keep top-line growth in positive territory; on the conference call executives said that business has "stabilized" and large advertisers have "come back to the table."

- Mobile phone giants Nokia and Sony Ericsson reported weak second-quarter results (Nokia missed expectations, Sony Ericsson's loss was a bit smaller than expected) and their outlook on the rest of the year was dim. Nokia said its market share would remain flat and overall industry volumes would fall 10% in 2009 y/y. Sony Ericsson saw challenging market conditions everywhere in the quarter and expects things to remain difficult all year. Elsewhere in the mobile device market, Apple rapped Palm, announcing the latest version of iTunes fixed a "bug" that will prevent Palm's workaround from mimicking an iPod for easy connectivity to iTunes.

- Treasury markets have been overshadowed by equities and corporate earnings this week, but with several high-profile reports beating expectations, risk appetite ratcheted up noticeably. The result was a steady decline in government bond prices, pushing yields higher. Thursday was the exception as Treasuries managed to rally modestly in tandem with equities; some market participants began to speculate whether bond traders were unconvinced early Q2 earnings reports were indicative of better things to come for the broader economy or even whether the second quarter sell-off in government paper (when yields rose by roughly 50bps in the US 10-year) was undergoing a rethink. But Friday's better-than-expected housing starts and building permits data helped bond prices resume their move lower. Yields have moved out to their highest levels in nearly three weeks as stocks consolidate gains in their best week in months. The long bond yield has retested 4.5% while the two-year briefly ticked above 1%. With the 10-year yield regaining 3.6% the benchmark spread widened out to more than 260 basis points for the first time since early June.

- In currency trading the risk aversion/risk appetite dynamic remains in force. Renewed concerns over the health of corporate
America and the financial sector prompted a degree of risk aversion early in the week, to the continuing benefit of USD and JPY pairs. Constructive comments from China's PBoC and the Japanese cabinet on their respective economic outlooks put this trend on ice mid week, shifting trade toward risk appetite. A PBoC assistant governor said there were some positive signs for the Chinese economy, while the Japanese Cabinet's monthly report raised its view on exports, imports, business spending and private consumption sectors. Note that both nations warned that uncertainties have not disappeared. These comments also helped send commodities on an upward trend for the week, another factor for the softer greenback sentiment late in the week. EUR/USD reflected these moves in a gradual uptrend line, testing 1.3900 on Monday but above 1.4140 by Thursday and apparently breaking out of its one-year downtrend line on Friday after hitting its all-time high of 1.6030 last summer.

China and Japan were hardly the only bright spots in the global economy this week. Euro Zone industrial production rose for the first time since last August. The Australia's business employment index jumped record 18 points to -7, its business confidence index was positive for the first time since December 2007 and business conditions survey hit its highest level in nine months. In the UK, the RICS house price index hit its highest level since September 2007. Singapore raised its 2009 GDP forecast to a range of -6% to -4% from a range of -9% to -6%, and said its Q2 GDP soared +20.4% q/q. Germany's ZEW economic sentiment survey declined for the first time in nine months. Not all the data was positive, however. The UK's June Commercial Property Values survey fell by 0.9%, making its 24th consecutive decline. In the US, Realtytrac said Q2 foreclosures hit all-time record highs.

- The reserve currency issue is still simmering on the sidelines. In China (whose currency reserves rose to a record $2.13T in June), PBoC economist Wang Yon said the government should moderately increase its holdings of US Treasuries and suggested that countries with large dollar reserves should hold talks with the U.S. government on the possibility of shifting bond holdings into other assets such as stocks and gold. More than one dealer concluded that
China is trying to hit the reset button on the reserve currency question. South Korean sovereign fund KIC said it was planning to purchase inflation-hedging assets, including property and commodities. Treasury Secretary Geithner once again reiterated that the dollar would remain the principal reserve currency and repeated his commitment to a strong dollar.

- Sovereign ratings are another area of concern, although they had little effect on the price action during the week. The IMF raised new questions about the state of the
Britain's public finances. France's latest bond issue raised doubts over the country's "AAA" rating. A UK press article noted that Fitch was paying close attention to French plans for a "special national bond" to raise up to €80B for projects outside the normal budget. While Fitch said there is no immediate threat to France's rating, the agency warned that concerns could mount if the country failed to map out a clear path toward fiscal discipline over the next year or so. S&P cut California's Economic Recovery Bonds by one notch to A from A+.

- The week in
Asia saw a fairly strong set of Q2 performance reports from Singapore and China, with the latter also posting some critical figures for industrial, retail sales, and inflation trends. In Singapore, Q2 Preliminary GDP saw the island leap out of recession with the biggest q/q increase on record at 20.4% -- well above the 13.4% expected. China's GDP topped estimates by a tenth of a percent at 7.9%, bouncing from Q1's 6.1% on the back of stimulus driven investment flows. Sharp gains in industrial production were also impressive, but left some analysts wondering to what extent they reflected post-slowdown restocking activity. June retail sales were in line with estimates at 15.0%, however inflation data dipped to a multi-year low pace, with the PPI reading at -7.8% and CPI -1.7% y/y. This could effectively forestall concerns over another inflationary bubble emerging out of the PBoC accommodative stance, keeping its liquidity draining activities to a minimum. Following this mixed bag of data, China's government stats office acknowledged improving conditions, but also warned that the momentum of economic recovery was still not particularly stable, pledging to keep proactive fiscal policy and moderately loose monetary policy amid overcapacity in certain industries and ongoing pressure on the employment sector


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."

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