U.S. Equities March Higher as Investors Gain Confidence
All three major stock indices finished the day sharply
higher after earlier weakness driven by a possible pact between the EU and Greece
and better than expected weekly jobs data.
Thursdayâ€™s rally indicates that confidence may have been
restored to the financial markets. This renewed confidence is tied to possible
improvements in the global credit markets and signs that the U.S. jobs
market may be confirming the developing recovery. Traders feel that an
agreement between the EU and Greece
will increase appetite for risk and bought in anticipation of the news. The
March E-mini S&P 500 is on path to test a 50% level at 1084.50.
The strong rally in April Gold market is a strong indication
that the pact between the European Union and Greece is imminent, thereby driving
up demand for risky assets. Speculators are anticipating that the agreement to
shore up the debt in Greece
will be released shortly. This release of this news should pressure the Dollar
and underpin the gold market. Gold closed near a minor retracement level at
$1095.10. A breakout through this level could trigger a further rally to
March Crude Oil posted a strong rally following early
session weakness. Crude oil was under pressure earlier in the session because
of uncertainty over the EU/Greece pact and the stronger Dollar. Oversold
conditions and the possibility of a weaker Dollar over the near term could
boost this market even further on Friday. Traders are looking for increased
demand for risky assets to continue as confidence returns to the financial
system. In addition, signs of an improving economy may increase demand for
energy.The charts indicate this market
has a clear shot at testing 78.44 over the near-term, but it must hold 73.77 to
complete the move.
News of an impending agreement between the Greece and the
EU helped to pressure March Treasury Bonds and Notes. Traders sold off safe
haven positions in anticipation of a resolution to the Greek deficit woes. Wednesdayâ€™s
comments from Bernanke, hinting at a hike in the discount rate also pressured
Treasury futures. Furthermore, traders feel that yields will rise because of
the new supply of Treasury debt hitting the market.117â€™01 is a key retracement level for March Bonds.
Downside momentum could trigger a further decline to 116â€™14. Talk is
circulating that foreign investors, especially China, may cut back on their demand
for bonds because of credit risks. This may drive up yields.
The March Euro made a successful test of last weekâ€™s low at
1.3584 and finished close to the middle of this weekâ€™s range. Early in the
session, the Euro broke sharply but buyers came in to defend the low.
Volatility is expected to continue to be high as traders are reacting to news
or the lack of news regarding the possible announcement by the European Union
of a plan to support the Greek economy.
The daily chart pattern suggests this market is being wound
tightly. The longer it remains in a tight range the stronger the breakout move.
A rally through this weekâ€™s high at 1.3838 should put this market on path to
retrace to at least 1.4079 over the near-term.
Timing the swings of the market has been difficult this week
as news has been sporadic. One thing that has been made clear is an agreement
between the EU and Greece
has been reached. The main issue driving the Dollar and the Euro today is the
details of the pact. Some bullish Euro traders apparently were led to believe
that a bailout out would take place, but that does not appear to be the case.
Talk is circulating that the pact is a show of solidarity by
the European Union. This is likely to mean that the EU as well as the
International Monetary Fund will maintain a watch over the Greek budget and
assure adherence to its strict requirements. Furthermore, loans will be
provided when deemed necessary to shore up the Greek economy.
Skeptics maintain that this type of agreement will not last
and that similar issues are likely to flare up in Portugal
These issues will once again test the foundation of the European Union. If
anything, trader reaction has been less than bullish although the door has been
left open for a substantial short-covering rally in the EUR USD.
The March British Pound tested this weekâ€™s low at 1.5534
before mounting a strong recovery rally. This market appears to be forming a
support base and like the Euro is awaiting details of the Greece rescue plan. Shorts are
likely to cover as the details of the rescue are released.
Technically, this market has a short-term upside target of
1.5801 to 1.5865. Gains could be limited because of the economic issues in the U.K.
On Wednesday, the Bank of England lowered its inflation estimate while hinting
at expanding and extending its quantitative easing program. Furthermore, just
because Greece is being
helped out does not mean the deficit issues facing the U.K. will go away. Over the
short-run, the focus may shift away from Greece
to the U.K.
The March Japanese Yen finished the day slightly higher
during an almost lifeless trading session. Thursdayâ€™s strength comes as a
surprise because the combination of the Greek rescue plan and Bernankeâ€™s talk
of raising the discount rate earlier in the week should have been supportive
for the Dollar. In addition, increased appetite for risk should have triggered
a more bullish response. Short-term oversold conditions could be triggering the
weakness. The lack of movement in this market could be suggesting that traders
remain nervous about the condition of the financial system.
The weaker Euro helped drive down the March Swiss Franc. The
low of the day was within a few pips of last weekâ€™s low at .9264. This was also
near an area where the Swiss National Bank finished last weekâ€™s intervention
action. Because of the magnitude of the situation in Greece, traders may be waiting for
the actual release of the details from the EU/Greek pact before committing to
the short-side. A recovery rally in the Euro over the past few days should
underpin the Swiss Franc because it eliminates the need for the SNB to
intervene to protect the value of its currency and its economy against
Canadian Dollar traders ignored the stronger Dollar and
instead chose to focus on the strength of gold, equities and crude oil. The
March Canadian Dollar opened higher, but broke a little early in the session as
the Dollar strengthened and risky assets fell.
Technically, this current rally in the Canadian Dollar is
related to last Fridayâ€™s closing price reversal bottom. The main trend on the
daily chart turned up today on the move through .9583, but gains were been
limited after a successful test of a 50% price at .9553. A failure to hold this
level will trigger a further rally to .9607. The bigger picture suggests more
rangebound trading should be expected.
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 17 July 2018 AA 08:30 GB- Employment A 13:15 US- Industrial Production AA 14:00 US-Powell Testimony Wed 18 July 2018 AA 08:30 GB- CPI A 12:30 US- Housing Starts/Permits AA 14:00 US-Powell Testimony Thu 19 July 2018 AA 1:30 AU- Employment AA 08:30 GB- Retail Sales A 14:30 US- EIA Crude A 12:30 US- Weekly Jobless Fri 20 Jun 2018 A 12:30 CA- CPI/Retail Sales
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.