User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday January 20, 2010 - 13:25:08 GMT
Forex Hound - www.forexhound.com

Share This Story:
| | Email

Stocks Falter Overnight as Chinese Equity Markets Plunge

U.S. Stock markets backed off from Tuesday’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 couldn’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 industrial metals.

 

March Crude Oil failed to follow-through to the upside after Tuesday’s closing price reversal bottom.  The pattern hasn’t been negated, but there doesn’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 by China that it was asking banks to curb lending for the rest of the month.

 

China’s 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 China’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 Greece’s debt woes are “serious”.  Without any aid from the European Union, or the European Central Bank, look for Greece’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 yesterday’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 target.

 

Overnight the BoE’s King said that Tuesday’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 Tuesday’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. Yesterday’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 yesterday’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

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."



Elevate Your Trading With The Amazing Trader!

The Amazing Trader includes:
  • Actionable trading levels delivered to YOUR charts in real-time.
  • Live trading strategy sessions.
  • Market Updates with Trading Tools.

Register To Test Your Amazing Trader


Trading Ideas for 18 December 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

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

Forex Trading Outlook


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
  • POTENTIAL PRICE RISK: Medium- Wed --15:30-- US- EIA Crude

John M. Bland, MBA
co-founding Partner, Global-View.com EXCLUSIVE: Global-View Daily Trading Chart Points Updated

EXCLUSIVE: Global-View Free Forex Database updated




TRADER ADVOCACY ARTICLES

Trader's Advocate Articles..

pic

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 Global-View.com.

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

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.

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105