Long-end of Treasury Complex Reacts Negatively to Fed Statement
Stock indices managed to eke out a small gain after the Fed
left interest rates alone but offered more details as to how it plans to exit
its stimulus programs.Although the Fed
said the employment situation was improving equity traders failed to take
notice and instead focused on the thought of higher interest rates.Stock indices weakened shortly after the
release of the FOMC announcement when buyers failed to show up.The charts indicate that the way of least
resistance is down with 1096.75 the first target for the March E-mini S&P
The thought of higher interest rates helped pressure the
Treasury complex with the long-end of the market taking the brunt of the
selling. With the Fed slowly exiting from the asset purchase business,
longer-term yields will now be allowed to rise.This put the pressure on the March Treasury Bonds.
February Gold finished sharply higher.The weaker Dollar had little to do with
todayâ€™s rally.Although the Fed implied
that inflation was not an issue, yesterdayâ€™s uptick in PPI started the rally
this week.Oversold factors could be
contributing to the strength and there is always the possibility that central
banks are buying again.The chart
indicates a rally to $1155.50 is likely.This would complete a normal 50% retracement of the recent decline.
Stronger gold and a weaker Dollar helped support March Crude
Oil today.Speculation, however, that
the economy was turning around may have been the biggest contributor to the
rally.Traders could be anticipating an
increase in demand, now that it looks like industrial production is turning
positive.Technically, this market is trading
inside of a retracement zone.A close
over 75.53 will be a sign of higher prices to follow.
The U.S. Dollar erased earlier losses after the Federal
Reserve released its monetary policy statement.The Dollar turned higher after trading most of the day lower after the
Federal Open Market Committee offered more detailed plans to remove excess
liquidity from the financial system.
The Fed also offered commentary on the economy, saying that
deterioration in the labor market is â€śabatingâ€ť.This statement is a reaction to the decline in the unemployment rate
earlier in the month from 10.2% to 10.0%.The Fed did reiterate, however, that it will keep its benchmark interest
rate at a historically low level for â€śan extended periodâ€ť.
Bernanke and his friends also said â€śHousehold spending
appears to be expanding at a moderate rate, though it remains constrained by a
weak labor market, modest income growth, lower housing wealth and tight
credit.â€ťThis statement can be
interpreted to mean the Fed still wants to see people getting jobs, consumers spending
and banks lending money.
The March Euro erased its earlier gain after the release of
the FOMC statement.This move was
short-lived causing a two-sided trade into the close.Technical issues could help support the Euro
over the short-run, but investors are still monitoring sovereign debt issues in
Spain, Portugal and Greece. Any new bearish
developments regarding Euro Zone debt issues could pressure the Euro.
The March British Pound held on to its gains after the Fed
released its monetary policy statement.The British Pound was buoyed this morning by a better than expected
initial claims report.
Profit-taking and overbought technical conditions helped
support the March Swiss Franc most of the day.Shortly after the Fed announcement, the Swiss Franc weakened, but thin
buying interest led to a quick turnaround.
The Fed news did very little to the March Canadian Dollar,
which remains rangebound.The Canadian
Dollar received most of its support the strong rallies in Gold and Crude
Oil.Continue to look for a range bound
The March Japanese Yen remained rangebound although the
Dollar strengthened versus the Yen after the Fed announcement.With the Fed outlining its exit strategy,
Japanese interest rates are once again becoming the lowest in the world.This is helping the Dollar gain against the
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
Potential Trading Opportunities
POTENTIAL PRICE RISK: Medium Mon--10:00 GMT-- EZ- final November HICP. flash data are rarely changed.
POTENTIAL PRICE RISK: HIGH- Medium Tue --09:00 GMT-- DE- IFO Survey. Key report but usually not a market-mover
POTENTIAL PRICE RISK: HIGH- Medium- Tue --13:30 GMT-- US- Housing Starts and Permits. Leading indicators of activity
POTENTIAL PRICE RISK: HIGH-Medium- Wed --15:00-- US- Existing Homes Sales. Top Housing statistic
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.