Dollar Set to Rally on Lower Demand for Risky Assets
A drop in Asian equity markets is leading to spillover
selling in the U.S.
markets. The follow-through to the downside overnight appears to be a
continuation of the sharp break from the high on Friday. Concerns over a credit
rating cut in the U.K. and
the lack of a bailout plan for Greece
are two reasons for the selling pressure. This morningâ€™s weakness will be a
good test of investor demand since they have grown accustomed to buying dips
throughout the recent rally.
Trader demand for safety is helping to underpin the June
Treasury Bonds. Fridayâ€™s closing price reversal bottom has not been confirmed
yet, but a sharp break in the equity markets is likely to drive up demand for
safer, lower-yielding assets.
April Gold is trading higher despite the stronger Dollar.
This is an indication that investors are becoming concerned about the
possibility of a sharp decline in the British Pound. The threat of a downgrade
from Moodyâ€™s is pressuring the Pound and raising concerns about its ability to cover
the servicing of its sovereign debt.
June Crude Oil is trading lower. A drop in demand for higher
risk assets is triggering the weakness. Fridayâ€™s closing price reversal top has
not been confirmed, but expectations are for this market to accelerate to the
downside once the top is confirmed.
The Dollar is trading higher overnight as traders await key
economic reports and tomorrowâ€™s Federal Reserve Open Market Committee meeting.
Overnight, traders are reacting to less demand for risk on concerns over a
Greek bailout and a debt rating cut for the U.K.
Key reports today include Empire State Manufacturing,
Treasury International Capital and Industrial Production.
The Empire State Manufacturing Report is expected to show a
drop from 24.91 to 22.00.Economists
base their forecast on a decline in the new order index. This report is based
on a survey of manufacturing executives. A number below 22.00 is a sign of a
slowing economy. This would likely support the Dollar by triggering less demand
for higher yielding assets.
The Treasury International Capital Report shows the flow of
financial instruments into and out of the U.S. This report, which measures
foreign demand for our debt and assets, is important because of its effect on
Bonds and the Dollar. Strong inflows put downward pressure on interest rates.
This also underpins the value of the Dollar since foreigners must purchase
Dollars in order to buy our securities. Traders want to see increased foreign
interest in our financial assets.
Industrial Production is called unchanged with economists
guessing at a range of -0.4% to 0.2%. Recently higher Philadelphia Fed and New
York Manufacturing reports have been offset by the lower ISM Index.The Capacity Utilization Rate is expected to
drop to 72.4%.A stronger number could
boost equity prices and demand for higher risk assets. This could pressure the
The U.S. Dollar is at that point once again where traders
canâ€™t decide whether to sell it on good economic news and demand higher risk
assets or buy it on the good economic news. At times last week the stronger
stock market put pressure on the Dollar, but there were also instances where
both the Dollar and equities rose. This condition indicates the markets may be
going through a transition period which could lead to a sideways trading
What is clear today is that risk aversion is driving the
U.S. Dollar higher overnight. Falling equity markets triggered the initial
strength in the Dollar last night in Asia. Traders
once again are expressing their concerns about the sustainability of the global
The March Euro is trading lower overnight on reports that a
few Euro Region finance ministers are rejecting the idea of a bailout for Greece. Over the
weekend ahead of the start of todayâ€™s two-day meeting in Brussels, German Finance Minister Schaeuble
and French Finance Minister Lagarde downplayed the possibility of a bailout
package. This news was contrary to reports last week which speculated on a $41
billion bailout proposal from German and France.
The March British Pound is trading sharply lower overnight
as traders are speculating that the U.K. will be unable to service its
debt, thereby increasing the odds of a credit downgrade by Moodyâ€™s. The CFTC is
also reporting in its Commitment of Traderâ€™s Report that the number of net
short traders is at 67,549 as of March 2nd. Political uncertainty which could
lead to a â€śhung parliamentâ€ť is also contributing to todayâ€™s weakness. Continue
to look for downside pressure on the British Pound.
Despite demand for lower risk assets, the March Japanese Yen
is trading lower. Concerns that the Japanese government may begin implementing
a plan to ease the rise in the Yen is weighing on the currency and supporting
The fall in the Euro is helping to halt the rally in the March
Swiss Franc. Traders expect another round of intervention by the Swiss National
Bank if the Euro continues to decline. A turnaround in the Euro today will
strengthen the Swiss Franc and send the March Swiss Franc toward the 50% price
The March Canadian Dollar is up a little overnight, but
trading inside of Fridayâ€™s range. Upside momentum is building for a test of
parity over the near-term. For the most part, traders are looking for traders
are ignoring the overnight demand for higher risk assets and focusing on the
improving Canadian government.
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.