Forex Market Commentary and Analysis (17 May 2010)
The euro depreciated vis-√†-vis the U.S. dollar today as the single currency tested bids around the US$ 1.2235
level and was capped around the $1.2370 level. The common currency remains severely on the
defensive on account of heightened eurozone sovereign debt concerns.The common currency has not traded at these
depressed levels since April 2006.European
Central Bank member Nowotny said the euro is trading ‚Äúin an absolutely normal
range‚ÄĚ and characterized the eurozone‚Äôs fiscal deficits and ability to finance
them as ‚Äúvery serious.‚ÄĚBorrowings at
the ECB discount window have surged recently and are now above ‚ā¨4 billion.The London interbank offered rate (Libor) for
three-month loans in U.S. dollars reached its highest level in more than nine
months at 0.46% today.The U.S. dollar
Libor-OIS spread, a barometers of banks‚Äô reluctance to lend, grew to 0.25%, the
highest level since 17 August.Three-month Libor rates have expanded for eleven consecutive weeks and
this is important because approximately US$ 360 trillion of financial products
worldwide are benchmarked to the rate.Credit
default swap rates on several European countries continue to rise with Greece,
Portugal, and Spain leading the way.In U.S. news, data released today saw
the May Empire State manufacturing index decline to 19.11 from the prior
reading of 31.86.March net long-term
TIC flows expanded significantly to US$ 140.5 billion from the prior reading of
US$ 47.1 billion while total net TIC flows grew to US$ 10.5 billion from the
upwarly-revised prior reading of US$ 9.7 billion.The May NAHB housing market index will be
released later in the day and data to be released tomorrow include April PPI,
April housing starts, and April building permits.240 banks have failed in the U.S. since 2007
and a bill in the Senate would leave the Federal Reserve at the center of U.S.
oversight.European Commission Financial
Services Commissioner Barnier reported he will seek a U.S. agreement that CDS
trades must be registered.Euro
bids are cited around the US$ 1.2140 level.
The yen depreciated vis-√†-vis the U.S. dollar today as the
greenback tested offers around the ¬•92.70 level and was supported around
the ¬•91.75 level. Former Bank of Japan
Policy Board member Taya today said ‚ÄúThree to four years from now I expect a sovereign
debt crisis to hit Japan and long-term interest rates to surge.‚ÄĚ Notably, Japan‚Äôs
public debt is nearly twice the size of its gross domestic product ‚Äď the
highest level among major industrial countries.Data released in Japan overnight saw March machine orders up 5.4% m/m
and 1.2% y/y while the April domestic corporate goods price index was up 0.4%
m/m and off 0.2% y/y.Also, April
Tokyo-area condominium sales were up 22.6% y/y.The March tertiary index will be released tonight followed by April
consumer confidence, April machine tool orders, and April department store
sales.The Nikkei 225 stock index lost
2.17% to close at ¬•10,235.76.U.S.
dollar offers are cited around the ¬•96.85 level.The
euro moved higher vis-√†-vis the yen as the single currency tested offers around
the ¬•114.55 level and was supported around the ¬•112.45 level.The
British pound moved lower vis-√†-vis the yen as sterling tested bids around
the ¬•131.05 level while the Swiss franc moved
higher vis-√†-vis the yen and tested offers around the ¬•81.75 level. In Chinese news, the U.S. dollar appreciated
vis-√†-vis the Chinese yuan as the greenback closed at CNY 6.8277 in the
over-the-counter market, up from CNY 6.8266. Data released in China on Friday saw April
foreign direct investment up an actual 24.69% y/y, up from the prior reading of
12.08%.Yuan forwards weakened on new speculation
that China may delay the appreciation of its yuan currency on elevated fears
about Europe‚Äôs debt crisis.Singapore,
Japan, and France called for China to end its peg to the U.S. dollar. U.S. Treasury Secretary Geithner on Thursday
said he is ‚Äúconfident‚ÄĚ China is going to allow its currency to reflect market
British pound depreciated vis-√†-vis the U.S. dollar today as cable tested bids
around the US$ 1.4250 level and was capped around the $1.4545 level. U.K. Chief
Treasury Secretary Laws reported Treasury officials and Bank of England
officials noted it ‚Äúwould be responsible and safe‚ÄĚ to start reducing the fiscal
deficit this year.Data released in the
U.K. overnight saw May Rightmove house prices up 0.7% m/m and 4.3% y/y while
the May CBI industrial trends total orders index improved to -18 from the prior
reading of -36.April consumer price
inflation data will be released tomorrow.Cable bids are cited around the US$ 1.4110 level.The
euro appreciated vis-√†-vis the British pound as the single currency tested offers
around the ¬£0.8585 level and was supported around the ¬£0.84950 level.
franc depreciated vis-√†-vis the U.S. dollar today as the greenback tested
offers around the CHF 1.1445 level and was supported around the CHF 1.1320
level. There is renewed speculation
among some traders that Swiss National Bank will slow its purchases of euro for
francs via official interventions.Foreign currency investments comprise about 60% of the SNB‚Äôs balance
sheet.The Credit Suisse ZEW survey will
be released on Thursday followed by April money supply data on Friday.The
euro gained ground vis-√†-vis the Swiss franc as the single currency tested
offers around the CHF 1.4015 level while the
British pound lost ground vis-√†-vis the Swiss franc and tested bids around
the CHF 1.6300 figure.
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 18 Dec
10:00 EZ- final HICP Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes Mon 25 Dec
00:00 Christmas Holidays
Potential Trading Opportunities
POTENTIAL PRICE RISK: Medium Mon--10:00 GMT-- EZ- final November HICP. flash data are rarely changed.
POTENTIAL PRICE RISK: HIGH- Medium Tue --09:00 GMT-- DE- IFO Survey. Key report but usually not a market-mover
POTENTIAL PRICE RISK: HIGH- Medium- Tue --13:30 GMT-- US- Housing Starts and Permits. Leading indicators of activity
POTENTIAL PRICE RISK: HIGH-Medium- Wed --15:00-- US- Existing Homes Sales. Top Housing statistic
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.