U.S. Dollar Falls as Traders Downplay Dubai Concerns
The U.S. Dollar is declining overnight as speculators are
downplaying the debt problems in Dubai.
Over the week-end, the United
Arab Emirates central bank said it â€śstands
behindâ€ť the countryâ€™s lenders. This
helped to ease concerns that the state owned Dubai World will default on its
debt.Traders now believe that this is a
local economic problem rather than one with global ramifications.With these assurances in place, speculators
are increasing their demand for higher yielding currencies.
Despite these assurances by the central bank, traders should
continue to watch how the Dubai
debt situation unfolds.The debt problem
has exposed the fragility of the world financial markets.Although there may be a short-term pick-up in
global demand for risk, upside momentum in foreign currencies may slow if
investors decide to be a little more defensive in their speculative plays.Traders may decide to adopt a â€śtrade not to
loseâ€ť mentality which could create volatile trading conditions as investors
will be quick to take profits following any appreciation.
Over the week-end, Chinese Premier Wen Jiabao rejected calls
for a stronger Yuan. European Central Bank members had traveled to China hoping to
convince Chinese officials to allow its currency to rise. Their premise was
is distorting trade and limiting its own monetary policy options by keeping the
Yuan tied to the weakening U.S. Dollar.Wen said that keeping the Yuan stable is best for Chinaâ€™s economy.He also implied that a stable Yuan would be
beneficial for the global recovery.European officials feel that Chinaâ€™s currency policy is hurting
exports because it drives the Euro higher and that this policy is actually
detrimental to the Euro Zoneâ€™s economic recovery.
Dollar Index futures are trading lower overnight, but
holding above last weekâ€™s low at 74.27.The late session rally from the overnight low at 74.54 indicates that
traders are tentative about pressing this market further.
A rise in consumer prices is helping to boost the EUR USD
overnight as well as a return of demand for higher yielding assets.The main trend is up with a new main bottom
at 1.4801.A trade through this price
turns the main trend down.1.5144 is a
new minor top.
The GBP USD is trading sideways overnight.Pressure is coming from the thought that the U.K. economy
will continue to weaken over the short-term.A recent GDP report shows that despite additional stimulus, the economy
is not as robust as previously forecast.Technically, the main range is 1.5706 to 1.6878.The 50% price at 1.6292 held last week after
a sharp sell-off.Additional support is
coming from a pair of main bottoms at 1.6261 and 1.6250.
The USD JPY hit a 15-year low last week at 84.83.The current short-term retracement is normal
because of oversold conditions.Continue
to look for sideways to lower trading unless this market regains the old bottom
at 87.99.Speculators are also a little
confused as to whether the Japanese government will intervene.It is well-known that they are concerned
about the detrimental effect a rise in the Yen has on exports, but traders
arenâ€™t sure if the BoJ will intervene to pressure the Yen.Japanese Finance Minister Fujii said over the
week-end that the government wonâ€™t act to curb the Yenâ€™s gains, but later
denied the comment.No one is sure what
the government has in mind.This could
produce volatile trading conditions.
The recent Commodity Futures Trading Commission Commitment
of Traders Report shows that speculators are looking for the Swiss Franc to
rise.This new strategy could be based
on the thought that the Swiss economy will outperform the other European
nations.The USD CHF is under pressure
with the trend not likely to turn back up unless 1.0222 is violated.Last weekâ€™s intervention by the Swiss
National Bank helped trigger a bottom at .9918 and a closing price reversal
up.If this action is going to weaken
the Swiss Franc then 1.0047 to 1.0017 must hold as support today.
The USD CAD is in an uptrend, but short-term range
bound.Resistance is at 1.0730.Support has formed at two main bottoms at
1.0449 and 1.0416.Canadian Dollar
traders are waiting for signs from the equity and crude oil markets that demand
for risk is returning.If these two
markets continue to weaken, then look for the USD CAD to advance to the upside.
Renewed demand for higher risk assets is giving the AUD USD
a boost this morning.This is most
likely short-covering as the recent decoupling of this currency from the stock
market indicates lower prices to follow.Based on the range created by the July bottom at .7702 to the November
top at .9405, traders should look for a possible break to .8553 to .8352 before
major buyers step up to stop the break.The main trend is now down and the current lower-top, lower-bottom
formation indicates that selling pressure is beginning to build.
The main trend is down in the NZD USD.The charts indicate that .6914 to .6744 is
the next potential downside target.Diminishing demand for higher risk assets could pressure this market
until the end of the year.
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."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
Mon 18 Dec
10:00 EZ- final HICP Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes Mon 25 Dec
00:00 Christmas Holidays
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.