Dollar Trades Flat after Mid-Session Euro Sell-off
The U.S. Dollar had a choppy, directionless day. The lack of
event risk was likely the main reason for this as well as the easing of the
Greek fiscal crisis. Trading could continue in a similar manner over the next
few days because the first major report, Weekly Jobless Claims, is not due out
until Thursday. This will be followed by the Retail Sales Report on Friday.
The Greenback started the New York session under pressure against most
major currencies except the Japanese Yen. Trading was light and less volatile
than last weekâ€™s action. Shortly before the New York session opening, the Dollar began
to mount a slight comeback which accelerated into the mid-session.
The strong rally into the mid-session occurred as traders
backed away from higher risk assets. Comments from German Chancellor Angela
Merkel may have been the catalyst behind the weakness in the Euro. Merkel said
that a Greek bailout is not on the table and pointed toward the no bailout rule
in the European Union agreement as the reason behind her comment.
Another reason for the mid-session weakness in the Euro may
have been comments from Greek Prime Minister Papadreou who hinted that heâ€™d be
willing to turn toward the International Monetary Fund for help if the EU didnâ€™t
come through with financial aid. His comments were most likely designed to
light a fire under the EU to take action sooner.
Papadreou, in Washington to
meet with the President and other government officials, also wants the U.S. to
investigate recent trading activity in the Euro to look for signs of
manipulation or excessive speculation. This action could prompt a rapid
liquidation by hedge funds which would trigger a massive short-covering rally.
Risk appetite was up overnight, driven by strong demand from
Asia, favoring riskier, higher yielding
currencies. This helped drive up the AUD USD and NZD USD while putting the
lower-yielding Japanese Yen. Approaching the mid-session, the Aussie and Kiwi
weakened but were able to regain their strength into the close.
The primary driver of the higher Forex markets overnight was
speculation that European nations would rescue Greece financially if needed. Traders
reacted 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
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 was 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.
The USD CHF was down overnight while the NZD USD traded higher.
The Swiss Franc was 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 helped
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 fell as global investor demand picked 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.
The GBP USD made an attempt to rally overnight before
turning down during the New York
session. The British Pound continues to remain the weakest currency because of
the poor 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 19 Mar 2018 Tue 20 Mar 2018 AA 9:30 GB- CPI A 10:00 DE- ZEW Survey Wed 21 Mar 2018 AA 03:00 AU- Employment AA 9:30 GB- Employment A 12:30 US- Current Account AA 14:00 US- Existing Homes Sales A 14:30 US- EIA Crude A A18:00 US- Fed Rate Decision A 21:00 NZ- RBNZ Rate Decision Thu 22 Mar 2018 AA All Day flash PMIs AA 9:30 GB- Retail Sales AA 12:00 GB- Bank Of England Decision A 13:30 US- Weekly Jobless Fri 23 Mar 2018 AA 12:30 CA- CPI/Retail Sales A 12:30 US- Durable Goods A 14:00 US- New Homes Sales
John M. Bland, MBA co-founding Partner, Global-View.com
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.