Investors Flee Higher Risk Assets for Safety of U.S. Dollar
For the fourth straight day, investors dumped higher risk
assets for the safety of the U.S. Dollar.Todayâ€™s weakness reflects a change in sentiment toward lower yielding
assets.Many investors are beginning to
realize that central banks are gearing up to end their stimulus programs and
begin considering other ways to remove excess liquidity from their financial
systems.As a result, investors are
taking money off the table in the asset classes that benefitted the most from
the weaker Dollar.
The EUR USD finished sharply lower.Based on the recent range of 1.4480 to
1.5063, the Euro has retraced .618 to 1.4696.A successful test of this area could result in the start of a
short-covering rally, but traders have to watch the momentum before trying to
pick a bottom.The daily closing price
reversal top at 1.5063 has been confirmed and the objective reached.A weekly reversal in still possible if the
Euro finishes lower for the week on Friday. Based on the current set-up, there may be
vicious retracement to the upside as bearish traders try to set up a secondary
During the recent sell-off, traders piled on the GBP USD
with almost every currency gaining on the Sterling.This is most likely the main reason why the
British Pound was relatively stronger than the other currency markets
today.For example, as the Euro
weakened, traders were forced to unwind Euro/Pound spreads.This gave the British Pound strength.It isnâ€™t that the British Pound is perceived
as stronger than the Dollar; itâ€™s just that the spreads have to be
adjusted.Once this situation is
rectified, the GBP USD should weaken as money leaves higher yielding
assets.Fundamentally, the U.K. economy
remains weak as evidenced by the recent report showing a contraction in the
economy during the Third Quarter.This
weakness is causing speculation that the Bank of England will expand and extend
its asset purchase program.
The USD JPY lost substantial ground today as Japanese
investors increased their repatriation of investment funds.Often at the end of the month, Japanese
companies repatriate funds earned overseas.While this may be happening, additional support is begin provided by
investors taking money out of higher yielding assets.The key area to watch is 90.15.This price represents a 50% retracement of
the recent rally and could prove to be an important support price for the start
of a short-covering rally.
Weaker equity and crude oil markets coupled with stern comments
from the Bank of Canada are helping to trigger a huge surge in the USD
CAD.The current rally has retraced more
than the normal amount which could be indicating overbought conditions.This will not be know until the market stops
going up and pulls back into the retracement zone at 1.0695 to 1.0602.If upside momentum continues then look for
serious resistance to develop as the market approaches an old top at
The USD CHF rallied sharply higher today after an early
hesitation at the 50% level at 1.0242.The close over this price indicates a test of 1.0292.Weakness could develop under 1.0242, but
buyers are likely to come in at an uptrending Gann angle at 1.0192.
Investors dumped the AUD USD hard after Australian inflation
numbers came out slightly below pre-market estimates.The Aussie sold off as investors took out the
premium that was put in on speculation the Reserve Bank of Australia would
hike interest rates by 50 basis points at its next meeting in November.Traders are now figuring a 25 basis point
hike will suffice at this time.
Additional pressure is building on this market as rumors
continue to swirl that China
may end its stimulus program sooner than expected. This action would mean a cut
in Australian exports.On the other
hand, Chinese production is expected to increase by 16% during the Fourth
Quarter.This may mean a pick-up in
exports of raw materials.Traders will
have to decide which factor will have the biggest impact on the Aussie.
Technically, the AUD USD is nearing a key 50% price at
.8949.If there isnâ€™t a technical bounce
at this price then look for a further decline to the .618 price at .8859.
The initial break today in the NZD USD was triggered by the
weaker Aussie Dollar, but later in the day another harder down move took place
as investors began to realize that the Reserve Bank of New Zealand is
not going to hike rates before the end of the year.Speculators are scrambling to get out of long
positions.Anyone who bought in
anticipation of a rate hike were really taking a chance as recent comments from
the RBNZ suggested that they would hold to their early decision to leave
interest rates unchanged until mid-2010.
Forex Trading News
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
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.
Tue 17 July 2018 AA 08:30 GB- Employment A 13:15 US- Industrial Production AA 14:00 US-Powell Testimony Wed 18 July 2018 AA 08:30 GB- CPI A 12:30 US- Housing Starts/Permits AA 14:00 US-Powell Testimony Thu 19 July 2018 AA 1:30 AU- Employment AA 08:30 GB- Retail Sales A 14:30 US- EIA Crude A 12:30 US- Weekly Jobless Fri 20 Jun 2018 A 12:30 CA- CPI/Retail Sales
John M. Bland, MBA co-founding Partner, Global-View.com
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.
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.
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.
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.
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 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.
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 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.
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.
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.