User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday May 11, 2010 - 13:18:24 GMT
Forex Hound - www.forexhound.com

Share This Story:
| | Email

Euro Erases Gains as Bailout Euphoria Wears Off

The U.S. Dollar is trading higher overnight against most major Forex markets, buoyed by two major events: the inability of the European Union’s rescue package to instill investor confidence in the Euro and the news of the resignation of U.K. Prime Minister Gordon Brown. Both events are driving traders out of risky investments, triggering an increase in demand for lower risk currencies.

 

After a one day reprieve following the announcement of the European Union’s $1 trillion bailout package, the Euro is once again in a free fall this morning, threatening to take out the recent bottom at 1.2518. The historic announcement by the EU over the week-end failed to generate enough investor confidence to support the Euro, but more importantly reaffirmed that the destiny of the Euro is clearly in the hands of the hedge funds and large traders.

 

The fact that the Euro is trading sharply lower ahead of the New York session is a strong sign that the euphoria of the past 24-hours is over and that reality has returned to the Forex markets. Simply stated, Monday’s trading action demonstrated that traders accepted the fact that the EU’s aid package was a short-term fix and that over the long-term the economic problems in the Euro Zone would continue to exist long after the new money was sucked into the financial system. The post-bailout package sell-off in the Euro is also serving as proof that the market doesn’t believe that a country solves a debt crisis by issuing more debt.

 

The rejection by the market of the rescue plan serves as notice to the EU community that there is little doubt that the only way to avoid the spread of contaminated debt in the Euro Zone is to implement further austerity measures rather than pile debt upon debt. The overnight weakness in the Euro is also a strong indication that the market is discounting the inevitable that the debt of Greece, Spain and Portugal is getting very close to being declared “junk” by the credit rating services.

 

Besides the fear of contagion over the short-run, Euro investors are dealing with the real possibility that the bailout package will be a drain on European economic growth. The implementation of the unprecedented bailout package means that resources will be used to fill in “holes” in the economy rather than sow the seeds for future prosperity. Flooding the market with excess liquidity will force the European Central Bank to keep interest rates low for a longer period of time. As other major central banks begin to withdraw stimulus and hike interest rates, investors will shift investments out of the Euro Zone and into these higher yielding currencies putting additional pressure on the Euro.

 

While Euro investors deal with contagion issues, British Pound investors are wondering what happened to the government. The decision by U.K. Prime Minister Gordon Brown to quit has created disarray in the government just 5 days after the recent election resulted in a hung parliament.

 

Speculators are selling the British Pound this morning while the three main political parties haggle over how to structure the new government. At this time the Labour Party and the Conservative Party are trying to gain control of the hung parliament. The main objective of the process taking place at this time is to convince the Liberal Democrat party to throw its support to one of the two strongest parties.

 

British Pound traders are taking no chances at this time that a solution will be reached soon. Instead they have decided to sell the currency now and ask questions later. Even if a government is created today, the U.K.’s financial woes are not expected to disappear. There is still the main issue of how to balance the budget and reduce the country’s debt load.

 

The longer it takes to form a government, the more impatient traders will grow. This means that downside pressure is expected to continue until the new government issue is settled. Furthermore, the delay in producing a government could lead to a downgrade of the U.K.’s debt rating as the credit rating services will interpret this to mean that a solution to its debt problems may be difficult to attain in the short-run.

 

Today, traders should watch for a reversal of the action on Monday. In other words, risk adverse traders are expected to sell higher risk assets while seeking shelter in the lower yielding currencies. Look for downside pressure on the commodity-linked currencies. Overnight, traders are driving the Australian Dollar, Canadian Dollar and New Zealand Dollar lower. At the same time, the lower yielding Japanese Yen is rising versus the U.S. Dollar.

 

 

 

 

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