Euro Gains Overnight; Risk Appetite Weakens U.S. Dollar
The U.S. Dollar is under pressure overnight against most
major currencies except the Japanese Yen. Trading has been light and less
volatile than last weekâ€™s trading conditions. Shortly before the New York session
opening, the Dollar is mounting a slight comeback and trading off its lows
against a few of its majors.
The lack of event risk is likely to make the movement of the
Dollar the catalyst and market direction driver this week. The first major report
is Thursdayâ€™s Weekly Jobless Claims, followed by Fridayâ€™s Retail Sales Report.
Risk appetite was up overnight, driven by strong demand from
Asia, favoring riskier, higher yielding
currencies. This is helping to drive up the AUD USD and NZD USD while putting
the lower-yielding Japanese Yen.
The primary driver of the Forex markets overnight is
speculation that European nations would rescue Greece financially if needed. Traders
are reacting positively to comments from French President Nicholas. Over the
weekend he said that the Euro Region nations are â€śreadyâ€ť to help Greece. He also
added however, â€śif it were necessaryâ€ť. These comments drove the EUR USD higher
as they reduced the perceived risk of debt defaults throughout Europe. His comments also seemed to backup claims
reported by the Wall Street Journal over a week ago that both France and Germany stand ready to provide up
to $41 billion in bailout money provided the Greek government stay on course to
reduce its debt load.
Last week, the Euro turned its trend to up on the daily
chart after Greece
agreed to make massive budget cuts. This helped to instill a little confidence
in the countryâ€™s finances. In addition, a Greek 10-year bond auction went off
without a hitch, further indicating renewed confidence in Greeceâ€™s ability to recover from
its financial crisis.
The combination of fiscally responsible measures and the
technical change in trend is an indication that investors are getting
comfortable that Greeceâ€™s
problems are not going to spill over into other sovereign nations such as Portugal or Spain.
Adding further to speculation that the tide may be turning
up in the Euro is the news that net shorts dropped the week-ending March 2nd in
the CFTCâ€™s Commitment of Traders Report. This weekâ€™s net short figure showed a
drop to 66,770 open positions versus 71,623 from late February.There are still a tremendous amount of shorts
in the market, so this change most likely reflects light position paring.
Should the major hedge funds all decide to head for the exits at the same time,
look for a huge short-covering rally.
The USD CHF is down overnight while the NZD USD is higher. The
Swiss Franc is trading higher because the stronger Euro reduces the possibility
of a Swiss National Bank intervention. In addition, the SNB meets later this
week on March 11th. Short-covering due to oversold conditions are helping to
drive the New Zealand Dollar higher. On March 10th, the Reserve Bank of New Zealand
meets to discuss monetary policy. It is expected to leave interest rates
unchanged due to the weak economy.
The USD CAD is falling as global investor demand is picking
up for the Canadian Dollar. Traders have been encouraged to by the CAD due to
the relative safety of the Canadian banking system. In addition, last week it
was reported that Canadian GDP rose more than expected. The chart indicates
that 1.0224 is the next downside target. This would put the market at a price
which triggered a Bank of Canada verbal intervention in January.
Finally, the GBP USD has been see-sawing overnight. It is
possible that the current short-covering rally could move up into a 50% level
at 1.5297 before new selling pressure begins. The British Pound continues to
remain weak because of the weak U.K.
economy, the widening budget deficit, a dovish monetary policy and political
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.