USD JPY Tumbles as Return of Risk Aversion Rocks the Markets
The USD JPY reversed its four day rally as traders sought
safety in lower yielding assets following an announcement by President Obama to
curb trading at financial institutions. The immediate reaction was to sell
higher risk assets after Obama called for a reduction in the size and trading
activities of financial institutions. The downside reversal in the USD JPY sets
up a test of a major 50% price at 89.30.
The U.S. Dollar traded mixed against most major currencies
as profit-taking and volatility dominated the trade. Earlier in the session,
the U.S. Dollar surged as traders took protection against a shift in Chinaâ€™s
expansionary monetary policy.
The overnight announcement, that Chinaâ€™s economic growth and
inflation figures exceeded expectations fueled speculation that it was poised
to begin restricting loans and ending stimulus.Fear that the economy may overheat triggered demand for lower yielding
assets at the expense of higher risk stocks and commodities.
Throughout the New
York session, aggressive buyers backed away from
chasing the Dollar higher, leading to a profit-taking break. Overbought
conditions and intraday turnarounds in the Euro and Yen were the primary causes
behind the Dollarâ€™s weakness.
The EUR USD weakened further during the New
York session, but losses were limited by a persistent rumor which
said the European Union was preparing to loan money to Greece to shore
up its budget deficit. The rumor was
denied, but investors, nonetheless, took protection against a possible massive
short-covering rally by lightening up positions.
The chart pattern suggests the EUR USD held the
psychological level of 1.4000; however, 1.3800 remains the next valid downside
target.Short-covering could send this
market back to the old bottom at 1.4217.
The GBP USD weakened further on the news that the U.K. budget
deficit widened.A lack of confidence in
the economy could also be a driving force behind the recent weakness as
investors fear that the U.K.
may be falling behind its peers in the midst of the economic recovery.The British Pound closed off its low but
still finished down after testing a series of retracement levels between 1.6144
The USD CHF weakened at midday but managed to finish higher
for the session and avoided a potentially bearish closing price reversal top. This
market soared overnight but backed off as it approached the December high at
1.0507. A failure to hold an uptrending Gann angle at 1.0450 triggered profit-taking
stops at the mid-session, but a late session short-covering rally helped regain
Technical factors tried to pressure the USD CAD as it
approached a 50% level at 1.0484, but these forces were not able to keep this
pair down into the close, setting up the likelihood of a further rally to
Fundamentally, the recent action by the Bank of Canada
suggests that it will defend against a rapid rise in the currency.This creates a potentially long-term bullish
scenario. Short-term conditions are overbought, which may trigger a mild
The AUD USD finished near its low as investors continued to
punish higher yielding currencies. This pair traded slightly better this
morning before falling as traders began to factor in Chinaâ€™s recent tightening action
and Obamaâ€™s proposal. This market failed to hold a 50% level at .9031 and is
now poised to trade down to a .618 level at .8961.
The recent actions by China to tighten up its lending
policies could have long-term implications on the Australian economy.The formation of a secondary lower top will
be a strong sign that a top has been formed.The next Reserve Bank of Australia
meeting is February 2nd.Traders are
leaning toward another rate hike, but have cut down the probability of the hike
now that China
has begun tightening.
The NZD USD continued to weaken following a break in U.S. stock
markets. Demand for higher risk assets fell throughout the day, leading to the
liquidation in the Kiwi.Key Fib support
at .7150 was violated which could trigger further weakness to .7075 over 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."
Actionable trading levels delivered to YOUR charts in real-time.
Tue 19 June 2018 A 12:30 US- House Permits/Starts Wed 20 June 2018 A 14:00 US- Existing Homes Sales A 14:30 US- EIA Crude Thu 21 June 2018 AA 11:00 GB- Bank of England Decision A 12:30 US- Weekly Jobless Fri 22 June 2018 AFlash PMIs
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.