Stock Rally Fizzles as Investors Square up Ahead of Fed Announcement
equity markets could not hold on to its earlier gains and fizzled into the
close. Earlier today, the market got a boost, driven higher by good corporate
earnings reports and a better than expected consumer confidence report.
Before the opening, stock markets were called lower after a
volatile Asian trade triggered by a possible debt rating cut in Japan and another sign that China was
serious about tightening its monetary policy. Trading became progressively
rangebound as investors began to close positions ahead of the Fed FOMC meeting.
Treasury futures opened higher because of increased demand
for safer assets, but cooler heads prevailed throughout the day-session, sending
higher risk assets up and fixed income markets lower. The March Treasury Bonds
once again failed inside a major 50% retracement zone, but managed to close off
its low to prevent a daily closing price reversal. Look for sideways trading
February Gold opened lower because of the stronger Dollar,
but turned around when the Dollar failed to follow-through to the upside. Oversold
technical conditions seem to be helping this market form a support base. Donâ€™t
be surprised by a short-covering rally back to $1119.10.
March Crude Oil was under pressure overnight, but the lack
of follow-through to the downside after the New York opening triggered an intra-day
short-covering rally. The buying came in slightly better than the December 22nd
bottom at 73.52. A bottom may be forming, but itâ€™s most likely going to be
short-covering rather than fresh buying. The charts indicate there is room to
the upside with 79.14 the next possible target.
The U.S. Dollar managed to hold on to its overnight gains
despite a lackluster trading session. Following a couple of overnight events
and intra-day economic reports, the Dollar remained range-bound as many large
traders stood aside ahead of tomorrowâ€™s Fed FOMC announcement.Traders are looking for the Fed to leave
interest rates alone and to continue to leave them low for â€śa prolonged period
The Dollar surged overnight, driven by bearish news out of Asia. The Dollar rallied sharply overnight after a couple
of negative economic events drove traders to the safety of the Greenback.The Dollar was up today against European and Pacific Rim nations while falling against the lower
yielding Japanese Yen. The initial move to the upside was triggered by Japanese
debt issues and more evidence that China was beginning a tight monetary
corporate earnings reports coupled with a better than expected U.S.
consumer confidence helped weaken the Dollar at one point during the day
because of an increase in demand for higher risk assets. Investors didnâ€™t turn
outright bearish on the Dollar, but instead realized that the new data was
sufficient enough to warrant a lightening of positions. The Dollar also got a
boost from the new Obama proposal to freeze the budget in certain areas for
three years.This sent a sign to traders
that the U.S.
was serious about its burgeoning debt situation.
Greater demand for lower-yielding assets helped to drive the
March Japanese Yen higher this morning.Most of the buying took place early last night after the S&P debt
rating service put a negative spin on Japanâ€™s AA credit rating.Talk is circulating that S&P may cut the
rating to -AA after expressing concerns about Japanâ€™s ability to gain control of
its growing debt levels as well as stave off the deflationary pressures
haunting the economy.Technically, the
Japanese Yen neared a key upside target at 1.1227 before profit-taking drove it
off the low.
The Bank of Japan voted to keep interest rates unchanged at
its last meeting, but reiterated its commitment to fighting deflation. In the
meantime, it raised its deflationary forecast from a predicted drop of 0.8% to
In addition to Japanâ€™s
debt rating concerns, China
singled out the banks required to raise their reserve ratios for excessive
lending while telling others to stop lending. Both events are signs that the
Chinese government is serious about shoring up its finances and cooling down
the economy.This action is expected to
keep pressure on demand for commodities.
General weakness in higher risk assets helped to pressure
the March Euro. This market traded weaker but held above last weekâ€™s low at
1.4027. A failure at this price could trigger a further decline to 1.3800.Losses may have been limited because of the
possibility that Greeceâ€™s
debt problems may be resolved by a new bond issuance.
The March British Pound traded sharply lower after the U.K.
GDP report showed the economy grew slower than expected. The low figure of 0.1%
was smaller-than-forecast and showed that the economy narrowly avoided
prolonging the recession. This report
confirms that the U.K.
economy is lagging behind the rest of worldâ€™s recovery and could signal that
additional stimulus may be needed to revive the economy. Technical retracement
areas prevented this market from collapsing.
Lower crude oil and gold continued to pressure the March
Canadian Dollar while threatening to weaken the Canadian economy. Upside
momentum indicates that .9303 is the next downside target. Recent action by the
Bank of Canada to provide stimulus to the economy is also helping to weaken the
Canadian Dollar. Technically, this market is overbought, but will remain steady
to better unless a resistance angle at .9461 is violated.
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.