User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday February 2, 2005 - 21:59:20 GMT -

Share This Story:
| | Email

Dollar Reaction Muted As Fed Raises Rates Quarter Point, Leaves In “Measured”

DailyFX Forex Fundamentals 02-02-05

By Kathy Lien, Chief Strategist of

· Dollar Reaction Muted As Fed Raises Rates Quarter Point, Leaves In “Measured”
· Euro Slides On 70 Year High In German Unemployment
· UK Construction Sector Growth Slows


We can now cross off this week’s first major event risk off our list today, with the rather mundane passing of the Federal Reserve’s monetary policy meeting. As expected, the Federal Reserve raised interest rates by a quarter of a point to 2.50%, increasing the US’ yield advantage over Europe to 50bp. However, despite the rate hike, the euro actually rallied marginally following the release, as there was a minor disappointment with the Fed’s decision to leave in the word “measured” in their statement. In fact, the Fed barely changed any of the text in their statement and indicated that they will continue to raise rates. With no notable reaction in the US dollar, the euro fell back on the exceptionally disappointing Eurozone data released this morning. Producer prices fell a more than expected –0.2%, confirming the ECB’s on hold stance. German retail sales fell for the fourth consecutive month, indicating that domestic spending may not be rebounding as significantly as the market may have expected. Unemployment also increased to the highest level in 70 years. Although most of the rise was attributed to the addition of welfare recipients to the jobless count, the rise above the 5 million threshold will certainly hit a psychological cord - labor market reforms will become more important at this point. However, Eurozone data today, like it has over the past few months, will only have a nominal affect on the EURUSD. Instead, the market will be looking ahead to tonight’s State of the Union speech by Bush and Friday’s non-farm payrolls report for its next catalyst.


The US dollar barely reacted on the Federal Reserve’s decision to keep interest rates unchanged. The event was expected to pass without much fan-fare after last week’s disappointing GDP report. What will be more important now is Friday’s non-farm payrolls report and Greenspan’s speech about the current account shortly afterwards (8:45am EST). Friday will be a big day, and as such more range trading could in the dollar’s fate tomorrow, although jobless claims, factory orders and the service sector ISM data is scheduled for release. Meanwhile, back on employment, Challenger, Gray and Christmas announced a 15% drop in layoffs in the month of January. This is the first time since August that planned layoffs dipped below 100,000. The way things are shaping up, even if we do not see a strong non-farm payrolls report for the month of December, we will certainly see one for the month of January. The last two jobless claims reports were very robust at 318k and 325k. If tomorrow’s report is equally impressive, it could drum up more optimism for the US dollar ahead of Friday’s report.


Trading slightly higher than yesterday, the sterling remained consolidated on relatively light economic data. According to the Chartered Institute of Purchasing and Supply, construction activity in Europe’s second largest economy rose slightly to a 55.5 reading compared with consensus expectations of a 56.8 showing. Although lower than the December reading of 57.2, the above 50 reading still indicates further signs of expansion in the industry in light of dips in housing activity and civil engineering. As a result, the domestic currency traded higher but met with strong resistance at the $1.8890 level and looks to continue in a 100 pip trap until further direction can be established next week when monetary authorities convene to decide on interest rates. With expectations of a stay on benchmark rates, market participants are not ruling out a rate cut consideration in light of recent signs of slowing industrial and manufacturing production along with a slowdown in housing prices. Once again confirming the sentiment of unchanged interest rates were U.K. interest rate future contract yields. Gaining 10 basis points since the onset of the new year, the yield has remained around 4.85 and signaled tepid expectations of increased rates.


Selling pressure emerged in an otherwise consolidated atmosphere as expectations of a disappointing leading economic indicators report mounted. Set for release on Friday, participants are expecting the world’s second largest economy to show signs of a slowdown in growth as the figure is estimated to be below 50 percent. This would be the fourth month the report has disappointed to the downside and would add to the recently pessimistic retail sales and staid industrial production data we saw last week. As a result of the drop in sentiment, investment capital began flowing into fixed income as 20-year bond yields dipped to the lowest level since March during the session. With many participants believing instability still looms, more formidable confirmation needs to be forthcoming in convincing yen bulls to reign supreme. Otherwise, notions of a flight to quality may be inevitable.


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