User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday May 11, 2010 - 00:28:21 GMT
Forex Hound - www.forexhound.com

Share This Story:
| | Email

British Pound finishes Higher; Election Compromise in the Works

The GBP USD opened higher driven by spillover buying from the Euro, but by mid-session was trading well off its high. The initial rally was triggered by the possibility that the two major political parties - Labour and Conservative - were working together to map a plan for a balanced budget despite the possibility of a hung parliament.

 

The break began when the Liberal Democrats made a formal request to join the coalition. The weakness late in the session demonstrates that investors want to see a clear-cut plan by the next parliament to balance the budget and reduce the deficit. The request by the Liberal Democrats to join the Labour and Conservative parties at the planning meeting made traders nervous about the possibility of a hung parliament.

 

The strong rally in U.S. equity markets helped to drive up the USD JPY. The strong rally was actually a combination of less demand for lower yielding assets and the sale of 2 trillion Yen by the Bank of Japan last week.

 

Stronger demand for higher risk assets driven by sharply higher crude oil and equities helped to drive the USD CAD sharply lower. Based on the short-term range of .9929 to 1.0738, the main downside target was 1.0333 to 1.0238. This area was tested overnight, stopping the break in the process. A break under the .618 price level at 1.0238 should trigger an acceleration to the downside.

 

The AUD USD closed up in response to the sharply higher U.S. equity markets. Monday’s rally stopped at a 50% price level at .9047. Regaining and holding above this price could trigger a further rally to .9128.

 

The main trend remains down despite the rally. This makes this market susceptible to a near-term correction back towards the low in an effort to build a secondary higher bottom.

 

The NZD USD was in a strong position most of the trading session. The first reason for the rally was greater demand for higher yielding assets. The second reason for the rally was speculation that the Reserve Bank of New Zealand will begin hiking interest rates sooner than expected.

 

The Euro finished higher but finished well off its high on Monday. This was expected since the announcement by the European Union to inject close to a trillion Dollars into the Euro Zone financial and economic system triggered a short-covering rally but failed to attract new buying.

 

Traders are now looking at the move by the EU as a short-term fix to a long-term problem. The arrangement by the EU looks more like a panic move triggered by pressure from the global economic community. The size of the aid package itself was larger than any bailouts previously concocted by other central banks including the U.S. Federal Reserve.

 

The very size of the amount of money proposed by the EU and the subsequent reaction by the Euro brings into question whether the aid proposal is designed to save the Euro as a currency or increase the Euro’s value. Although short-covering helped drive the market higher initially, the way the Euro finished suggests that short-traders are still concerned about the underlying major problems in the Euro Zone.

 

While it is clear that the short-term fix proposed by the EU to buy the government debt of Portugal, Spain and Greece is supportive at this time, it isn’t clear what this aggressive proposal will do for the Euro region over the long-term.

 

The $1 Trillion rescue plan was able to move the Euro about 2% overnight, but it failed to do anything to address the irresponsible deficit spending habits of Portugal, Spain and Greece and any other peripheral Euro Zone nations which may face similar issues later on. This fact further supports the thought that the EU powers are not going to get control of the game until they propose and implement a plan that will help them wrestle control of the Euro away from the hedge funds.

 

The lack of clarity by the European Union has been a major concern for investors throughout the entire Greek episode. This weekend’s proposal has triggered a similar response. Sure it is easy to see the short-term ramifications, but what about the long-run. Doubts also are beginning to surface about the execution of the plan. This sets up the Euro for a period of volatile trading and most likely another test of the recent low.

 

Technically, the Euro stopped rallying after slightly overshooting a .618 retracement level at 1.3038. With the Euro bottoming last week at 1.2518 and topping this morning at 1.3093, traders should look for a pull-back into the 1.2805 to 1.2738 range. If the Euro is going to move higher then fresh buyers will step in at this zone. A failure to do so will drive the market to new lows.

 

The action by the EU sets up a classic battle between the governments of Europe and the hedge funds. Although the EU made a move which caught the markets by surprise overnight, the hedge funds still seem to be calling the shots. The battle lines have been drawn at 1.2805 to 1.2738.  Investors should know in a day or two whether the EU proposal will be given the benefit of the doubt or if it will go away with hardly even a whimper.

 

 

Forex Trading News

Forex Research

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 here.

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.
  • Live trading strategy sessions.
  • Market Updates with Trading Tools.

Register To Test Your Amazing Trader


Trading Ideas for 20 October 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

Fri 20 Oct
12:30 CA- Retail Sales & CPI
14:00 US- Existing Homes Sales


Tue 24 Oct
All Day flash PMIs
Wed 25 Oct
01:30 AU- CPI
08:00 DE- IFO Survey
08:30 GB- GDP
14:00 CA- BOC Decision
14:30 US- EIA Crude
Thu 26 Oct
11:45 EZ- ECB Decision
12:30 US- Weekly Jobless
14:00 US- Pending Homes Sales
Fri 27 Oct
12:30 US- GDP
14:00 US- final Univ of Michigan

Forex Trading Outlook


Potential Trading Opportunities


  • POTENTIAL PRICE RISK: High Fri-- 12:30 GMT CA- Retail Sales and CPI. Top economic indicators.


  • POTENTIAL PRICE RISK: HIGH Fri-- 14:00 GMT US- Existing Homes Sales. Top Housing statistic.



John M. Bland, MBA
co-founding Partner, Global-View.com

EXCLUSIVE: Global-View Daily Trading Chart Points Updated

EXCLUSIVE: Global-View Free Forex Database updated




TRADER ADVOCACY ARTICLES

Trader's Advocate Articles..

pic

Retail Forex Brokerage Changing!

Are you 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.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

 
Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map


Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Open Forum
Futures Forum
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Online Forex Trading
Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
Forex Products
GVI Forex
Free Trials
FX Bookstore
FX Jobs and Careers
Jobs USA
Jobs UK
Jobs Canada

Forex Forum

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.

Forex News

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

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.

Forex Brokers

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 Trading

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.

FX Trading

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.

Forex Blog

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.

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105