The Euro tumbled to a new low for the year after Spainâ€™s
debt was downgraded to AA. Traders initially sold off the Euro in a knee-jerk
reaction, but selling pressure quickly dried up. Although the Euro reached a
new low for the year, the selling pressure was not as intense as Tuesdayâ€™s
reaction. This was because investors had already discounted the possibility of
After bottoming about mid-morning, trading stabilized in the
Euro until the early afternoon when the Federal Reserve released its policy
statement. The FOMC kept interest rates at historically low levels and left its
somewhat dovish statement intact. In other words, rates are to remain low for
â€śan extended periodâ€ť. Although the Fed sees improvements in the economy it
still feels that unemployment is a problem as well as tight consumer credit.
Furthermore it thinks the housing market can be improved. Once again the Fed
stated that inflation is expected to be â€śsubduedâ€ť. The Euroâ€™s rally accelerated
to the upside after the Fedâ€™s statement was digested.
Wednesdayâ€™s trading action seemed to be indicating that
traders had faith that a resolution between Greece and the EU/IMF would be
reached soon. This was probably the reason for the less aggressive trading on
the short-side. In fact, the way the market traded, it looks as if
bottom-pickers were stepping in. At the close, the Euro formed a closing price
reversal bottom which could lead to a 2 to 3 day rally and a retracement to
Bearish traders should remain cautious at current levels so
they donâ€™t get caught in a massive short-covering rally. There are still plenty
of shorts still in the game, but it isnâ€™t going to take much to encourage the
weaker shorts to cover fresh losing positions.
It looks as if traders are backing away from aggressively
shorting the Euro as long as the EU/IMF is still working out the details of the
bailout. If anything should happen during the negotiations and talks were
called off, then look for the Euro to plunge. As long as the bailout dialogue
is open, it appears as if traders have priced in the worse case scenario for
the time being.
Talk of a â€śfragileâ€ť economy and renewed concerns about the U.K. election
led to a hard sell-off in the GBP USD on Wednesday. Investors are also
concerned that the problems in the Euro Zone may soon spread to the U.K. This is
the main reason why traders are worried about the May 6th election.
With the election too close to call at this point in time,
traders are worried that the outcome may result in a hung parliament. If this
occurs than it is possible that political uncertainties may result in a failure
to achieve a balanced budget. This would cause more debt to be issued, leading
to the possibility that the U.K.
credit rating will be lowered. With an explosive situation brewing in Europe,
it would not take much for debt issue problems to escalate in the U.K.
The strong recovery in U.S. equity markets helped rally
the USD JPY. In addition, traders are worried that Japanese debt may be next in
line to be downgraded. Like certain Euro Zone nations and the U.K., Japan has a huge debt problem on
its hands which could lead to a downgrade. Not only are traders selling the Yen
as a carry trade, but today it looked as if traders were pressuring the Yen in
anticipation of a debt rating downgrade.
Renewed interest in higher yielding assets and lower
interest rates in the U.S.
helped drive the USD CAD lower. With the Bank of Canada already on record
stating that interest rates are going to move higher in June and the Fed saying
that U.S. rates will remain
low for â€śan extended periodâ€ť, the interest rate advantage has shifted to Canada. This is
the primary reason for the strength in the Canadian Dollar on Wednesday.
Longer-term traders should continue to press the USD CAD lower because of the
strengthening Canadian economy and the likelihood of a series of interest rate
hikes over the next several months.
Higher than expected inflation and soft Fed comments, helped
to drive the AUD USD higher. On Wednesday, the Australian Dollar advanced from
a four-week low after a government report showed inflation almost doubled
during the last quarter. This triggered a short-covering rally on renewed talk
that the Reserve Bank of Australia
would raise interest rates at its May meeting.
After holding steady throughout the day, the Aussie surged
to a new high for the day after soft comments from the U.S. Federal Reserve
indicated that interest rates would remain at historically low levels. With the
Fed holding rates steady and the RBA likely to raise rates, the interest rate
differential remained in favor of the Aussies. This led to a strong rally after
the release of the Fedâ€™s FOMC statement.
The NZD USD traded mostly higher on Wednesday and closed better
after the Fedâ€™s FOMC statement indicated that interest rates would remain low
for â€śan extended periodâ€ť. With the Reserve Bank of New Zealand ready to issue its
policy statement tonight, traders bought the Kiwi in anticipation of a hawkish
commentary. Although the RBNZ is on record stating that interest rate are to
remain low until at least the middle of the year, some traders are speculating
that recent economic developments may be putting pressure on the central bank
to hike interest rates sooner than 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."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
Mon 19 Feb 2018
00:00 CN, US- Holiday Tue 20 Feb 2018
00:00 CN- Holiday A 10:00 US- ZEW Survey Wed 21 Feb 2018
00:00 CN- Holiday A All Day flash PMIs A 15:00 US- Existing Homes Sales A 15:30 US- EIA Crude AA 19:00 US- Fed Meeting Minutes Thu 22 Feb 2018 A 09:00 DE- IFO Survey A 09:30 GB- GDP AA 13:30 CA- Retail Sales A 13:30 US- Weekly Jobless Fri 23 Feb 2018 A 10:00 EZ- Final HICP AA 13:30 CA- CPI
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.