Stocks Falter Overnight as Chinese Equity Markets Plunge
U.S. Stock markets backed off from Tuesdayâ€™s strong closes
overnight as China
took moves to limit lending in an attempt to slow down the economy.The news sent shockwaves through global
equity markets as the Shanghai
index dropped 3%.Traders are concerned
that less spending from China
will derail the global economic recovery.
Last night IBM reported strong earnings but this news
couldnâ€™t carry the market.Investors may
have been standing aside while awaiting the special election results from Massachusetts.The news that Republican Brown defeated the
Democratic machine could pressure healthcare stocks, but insurance stocks may
benefit if the current healthcare plan gets defeated.
Today could be a volatile day.The stronger Dollar indicates that investors
are looking for lower yields and safety.This could weigh on higher yielding, higher risk assets like equities.
March Treasury Bonds and Treasury Notes are trading
higher.Traders are driving down yields
as they seek shelter from falling equity markets. If safety remains the theme
throughout the day, then look for more appreciation in bonds and notes.
February Gold is down sharply.Stronger demand for the Dollar is putting
pressure on gold. The charts indicate that a move through $1118.50 could send
this market sharply lower.News that China is asking
banks to limit loans could mean the end for excessive demand for precious and
March Crude Oil failed to follow-through to the upside after
Tuesdayâ€™s closing price reversal bottom.The pattern hasnâ€™t been negated, but there doesnâ€™t seem to be enough
buying power to confirm a valid bottom.Currently this market is trading inside a retracement zone at 78.99 to
77.70.A slowdown in demand from China could put
additional pressure on this market today.
The U.S. Dollar surged against most major currencies as
investors sought refuge in lower-yielding currencies following the announcement
that it was asking banks to curb lending for the rest of the month.
attempt to reign in bank lending is an attempt to put the brakes on a massive
lending spree in an effort to cool the economy.The availability of easy money through government stimulus and favorable
loan conditions helped fuel a huge surge in the Chinese economy. The pace of
the growth is a concern for central bank officials.Tomorrow, China is expected to report
double-digit 4th quarter GDP growth.
The Dollar also received a boost after Republican Scott Brown
won a U.S. Senate seat in Massachusetts.
Scott is expected to vote against the current healthcare plan which many feel
was going to cause U.S.
debt to go through the roof.
The combination of Chinaâ€™s aggressive action with the
Republican victory is expected to boost the Dollar while putting pressure on
equities and commodities.
The March Euro continued its freefall on concerns over Greek
debt issues.Overnight the move
accelerated to the downside after International Monetary Fund Managing Director
Dominique Strauss-Kahn said Greeceâ€™s
debt woes are â€śseriousâ€ť.Without any aid
from the European Union, or the European Central Bank, look for Greeceâ€™s debt
issues to continue to mount.
European officials have stood there ground about providing
financial help to Greece,
saying that it is not their problem to solve. They also fear that providing aid
will mean other countries such as Spain,
Portugal and Ireland
will begin lining up with their hands out in expectations of free money.
Technically, the March Euro broke through the December
bottom at 1.4217, reaffirming the down trend on the weekly chart. The chart
indicates that 1.3800 is the next major downside target, although 1.4000 may
provide some psychological support. At this time, it looks as if the only event
that can turn the Euro around will be if the EU or ECB provides help to Greece.
The March British Pound is trading sharply lower after
support failed and Bank of England
Governor Mervyn King issued a dovish comment about yesterdayâ€™s higher than expected
inflation report. Earlier losses were limited, however, after a report showed
that the U.K.
unemployment rate fell at the fastest pace since April 2007 in December.
Although the British Pound failed to form a closing price
reversal top on Tuesday, it sold off, nonetheless, when a 50% support price at
1.6355 was violated. The chart indicates that 1.6175 is the next downside
Overnight the BoEâ€™s King said that Tuesdayâ€™s reported spike
in inflation was a short-term event and not likely to last.The cause of the surge in inflation was most
likely the additional stimulus the BoE added in late Fall.
The tightening of lending in China is likely to slow down the
growth in the global economy and put pressure on higher yielding assets. This
is helping to support the March Japanese Yen overnight as investors seek lower
yielding assets and safety.
The March Japanese Yen is at a critical point on the charts.
Although Tuesdayâ€™s closing price reversal top was confirmed by a follow-through
break last night, the lack of follow-through to the downside should be a
concern to the bears. Yesterdayâ€™s top was triggered by a strong recovery in U.S. equity
markets.If U.S. stocks fall today, then the
Japanese Yen is likely to take back yesterdayâ€™s losses.Greater demand for the Yen should send the market
up to its next major retracement target at 1.1273.
Yesterday the Bank of Canada left interest rates unchanged,
but took measures to weaken the Canadian Dollar by increasing its asset-buyback
program.Weaker stocks, gold and crude
oil could put additional pressure on the Canadian Dollar.
Technically, a new main range has been formed in the March
Canadian Dollar at .9303 to .9780.This
sets up the next downside target at .9510 to .9461.
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.
Mon 23 July 2018 A 14:00 US- Existing Homes Sales Tue 24 July 2018 AFlash PMIs Wed 25 July 2018 A 08:00 DE- IFO Survey A 14:00 US- New Homes Sales A 14:30 US- EIA Crude Thu 26 July 2018 AA 11:45 EZ- European Central Bank Decision A 12:30 US- Weekly Jobless A 12:30 US- Durable Goods Fri 27 July 2018 AA 12:30 US- GDP A 14:00 US- Final University of Michigan
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.