User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday January 29, 2010 - 00:06:19 GMT
Forex Hound - www.forexhound.com

Share This Story:
| | Email

European Financial Problems Fuels Equity Market Sell-Off

U.S. stock indices sold off early in the trading session as fear swept through the markets. News that Greece’s budget problems could escalate along with Portugal sent traders into the Dollar and Japanese Yen and out of higher risk assets. Lower than expected U.S. economic reports also contributed to the weakness as traders liquidated positions in anticipation of a slowdown in the economy.  All three major indices reached major retracement zones on the downside which softened the break and let to a strong midday retracement. What appeared to be panic selling to some may have actually been a normal retracement.

 

The March E-mini S&P 500 has formed a range between 1148.00 to 1078.50. This makes 1113.25 to 1121.50 a potential upside target.  The charts are also indicating a possible rally to 1842.00 to 1855.50 in the March E-mini NASDAQ and to 10371 to 10445 in the March E-mini Dow.

 

Despite the near panic selling in the stock indices and an increase in demand for safety, pressure remained on the March Treasury Bonds and March Treasury Notes. This could mean that the stock break was emotional rather than fundamental.

 

Yesterday’s Fed report signaled that it is getting closer to hiking interest rates. The news that the Fed is ending its quantitative easing program on schedule at the end of March is likely to put upside pressure on yields. Tuesday’s closing price reversal top which started inside a major retracement zone is helping to pressure the March Bonds. All indications are for a possible break back to 116’06.

 

February Gold had a volatile day. Overnight the market dipped lower, but then failed in an attempt to rally as the Dollar began to strengthen shortly after the opening. The trend is up in the Dollar which should keep pressure on gold, although oversold conditions make this market ripe for a short-covering rally back to $1119.10.  A break under $1075.20 could trigger an acceleration to the downside. The bigger picture indicates that this market could collapse another $50 to $100 if speculators decide to liquidate positions.

 

March Crude Oil found support overnight ahead of the December bottom at 72.53. The test of this price encouraged shorts to cover positions while attracting bottom pickers. The fundamentals are still bearish because of low demand and higher inventories. Renewed interest in higher risk assets could trigger a short-covering rally however.  The charts indicate there is plenty of room to the upside with 78.99 a potential upside target.

 

The Japanese Yen rose on Thursday as investors shifted assets out of the troubled Euro Zone on renewed budget turmoil in Greece.  A spike in the cost to insure Greece’s sovereign debt triggered a flight to safety rally which fueled a turnaround in the Yen after earlier weakness.  News that a similar situation is developing in Portugal also contributed to the Yen’s strength.  The Euro fell to it lowest level against the Dollar as the news broke.

 

Traders had been cautiously removing risk from the Euro the past couple of days after a report earlier in the week showed great interest in a possible bailout bond issuance from Greece. Today’s action indicates that the situation is growing worse and that the Yen may soar at the expense of the Euro over the short-run.

 

After trading relatively flat in the hours before the New York opening, the U.S. Dollar strengthened close to midday as investor sentiment shifted back toward safety.  Late yesterday and overnight, the Dollar appeared to be ready to weaken as demand for higher risk assets began to pick up following upbeat news from the Fed and a well-received speech from President Obama.

 

Shortly before the New York opening, news began to leak about Greece debt concerns causing the U.S. stock market to sell sold off.  The release of less than stellar U.S. economic reports triggered additional selling pressure as investors pared equity market positions in anticipation of an economic slowdown. This rattled traders who then began selling higher price assets while seeking safety in the lower yielding U.S. Dollar and Japanese Yen.

 

The March Euro traded under pressure throughout the session while taking out sell stops under the psychological 1.40 level. Today’s selling pressure was been triggered by news that Greece’s budget woes have resurfaced, sending the price to insure its debt against default to a new high.  For several days, traders had become complacent while under the belief that a new bond issuance would make the Greek debt problems go away.  1.3800 remains the most likely downside target.

 

The British Pound is traded lower but remained inside of its five day range. It’s hard to tell at this time which direction investors prefer.  Fear, and demand for lower risk is likely to drive the market lower. Renewed confidence in the economy could limit losses or fuel the start of a rally.

 

Demand for safer assets helped turnaround the March Japanese Yen, erasing earlier losses. During the wee hours of the morning, the Dollar was rallying versus the Yen after completing a 50% retracement and a closing price reversal bottom. The catalyst for the rally was an upbeat statement by the Fed and optimism generated by Obama’s speech. A sell-off in U.S. equity markets and budget problems in Greece and Portugal, however, sent traders scrambling for safety, sending the Japanese Yen higher. This currency pair is probably the best indicator as to how bad the situation is between Greece and the Euro Zone.

 

Oversold conditions and profit-taking helped to underpin the March Canadian Dollar early but the sell-off in U.S. equity markets changed risk sentiment, triggering an intraday reversal. Look for the Canadian Dollar to feel pressure as long as investors continue to shun risk. Lower crude oil and gold also contributed to the weakness in the Canadian Dollar.

 

The March Swiss Franc was never able to get on track after an overnight break took this market through the December low at .9522.  A new main top has been formed at .9647.  This market is rapidly approaching oversold status and could begin a correction at any time. Watch for a closing price reversal to signal the formation of a bottom. Weakening gold and the possibility of an intervention by the Swiss National Bank are the fundamentals driving this market lower at this time.

 

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