Forex Market Commentary and Analysis (21 May 2010)
The euro appreciated vis-√†-vis the U.S. dollar today as the single currency tested offers around the US$ 1.2670
level and was supported around the $1.2455 level. Dealers continued to cover shorts ahead of the
weekend, fearful that the European Central Bank could intervene by buying euro
for dollars.Market rumours circulated
yesterday that the ECB was on the bid for euro to prevent further
depreciation.The common currency has
appreciated more than 330 pips over the past three trading days, underscoring
how technically oversold the pair has been for weeks.The common currency‚Äôs recent sell-off may
moderate until there is a market perception that the eurozone credit crisis has
intensified.A stabilization in global
financial markets may unwind elevated volatilities in the market but a
stabilization would not necessarily improve the crisis of confidence in the
eurozone or remedy its massive fiscal imbalances.ECB President Trichet reported ‚ÄúLet us be
clear: it is not the euro that is in danger, but the fiscal policy of some
countries that has to be, and is being, addressed.‚ÄĚ ECB member Nowotny said the
euro‚Äôs exchange rate ‚Äúis clearly within the historical range and gives no
reason for special concern.‚ÄĚ ECB member Stark said the ‚Äúeuro is secure and will
remain so.‚ÄĚData released in the
eurozone today saw the March current account improve to ‚ā¨1.7 billion while May EMU-16
PMI services improved to 56.0, EMU-16 PMI manufacturing fell to 55.9, and May
composite PMI moved lower to 56.2.German Q1 GDP was up 0.2% q/q and 1.7% y/y and the May Ifo business
climate index ticked lower to 101.5.Also, the Ifo current assessment fell to 99.4 and the May Ifo
expectations index fell to 103.7.Finally, French May PMI services improved to 61.9 and PMI manufacturing
fell to 56.2.In U.S. news, the U.S. Senate passed a financial services overhaul
bill overnight that maintains the Fed‚Äôs oversight over 5,000 banks but reduces
the influence of regional Federal Reserve directors.The bill also creates a new customer
protection agency, imposes restrictions on banks‚Äô proprietary trading, and
creates a new group of regulators to monitor economic threats.Outgoing Fed Vice Chairman Kohn today
reported the Fed ‚Äúwill be able to raise interest rates when it is appropriate
for macroeconomic stability.Exit tools
are very important.‚ÄĚEuro 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 ¬•90.45 level and was supported around
the ¬•89.00 figure. As expected, Bank of
Japan‚Äôs Policy Board kept its main overnight unsecured call rate target unchanged
at 0.10%.The central bank also outlined
plans to stimulate corporate loans and increase growth.BoJ Governor Shirakawa reported it will ‚Äútake
time‚ÄĚ for the European Central Bank‚Äôs efforts to improve the markets, and noted
the European crisis has had a ‚Äúlimited‚ÄĚ impact on Japan so far. Finance minister
Kan verbally intervened against the yen, saying he wants to prevent the yen‚Äôs
gains from becoming ‚Äúexcessive.‚ÄĚ BoJ injected ¬•1 trillion on same-day funds
into the banking system today to expand liquidity, the third such operation
since 7 May. Notably, the central bank upgraded its assessment of the economy,
noting it is ‚Äústarting to recover moderately.‚ÄĚ The Hatoyama government is likely to continue
pressuring the central bank to ease policy further. Data released in Japan overnight saw the March
leading index tick lower to 102.7 and the March coincident index improved to
101.5.The Nikkei 225 stock index lost
2.45% to close at ¬•9,784.54.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 ¬•114.40 level and was supported
around the ¬•111.00 figure.The British pound moved higher vis-√†-vis
the yen as sterling tested offers around the ¬•130.80 level while the Swiss franc moved higher vis-√†-vis
the yen and tested offers around the ¬•78.80 level. In Chinese news, the U.S. dollar appreciated vis-√†-vis the Chinese
yuan as the greenback closed at CNY 6.8278 in the over-the-counter market, up
from CNY 6.8277. Market talk suggests
the U.S. and China will deemphasize a revaluation of the yuan when officials
meet soon. Many dealers believe PBoC may
delay its yuan revaluation and further interest rate increases on account of
the global market turmoil.Former PBoC
adviser said the yuan‚Äôs revaluation should be ‚Äúgradual.‚ÄĚ
British pound appreciated vis-√†-vis the U.S. dollar today as cable tested offers
around the US$ 1.4495 level and was supported around the $1.4315 level. Yesterday, Bank of England Monetary Policy
Committee member Posen reported eurozone problems will reduce the U.K.‚Äôs
consumer price inflation despite ‚Äúupside risks to inflation.‚ÄĚMPC member Tucker warned the sharp monetary
easing may lead to exuberance.Data
released in the U.K. today saw Q1 total business investment grow 0.6% q/q and
decline 11.0% y/y. Also, the April public sector net cash requirement came in
at ¬£8.8 billion and April public sector net borrowing came in at ¬£10.0
billion.Also, April mortgage approvals
growth decelerated to 47,000 from the revised prior reading of 51,000.Cable bids are cited around the US$ 1.4110
level.The euro appreciated vis-√†-vis the British pound as the single
currency tested offers around the ¬£0.8770 level and was supported around the ¬£0.8650
franc appreciated vis-√†-vis the U.S. dollar today as the greenback tested bids
around the CHF 1.1450 level and was capped around the CHF 1.1580 level.Data released in Switzerland today saw the
April M3 money supply expand 5.4% y/y.Swiss
National Bank Vice Chairman Jordan this week reported the central bank is
‚Äúdecisively‚ÄĚ averting an appreciation of the franc, leading to speculation the
SNB‚Äôs actions prompted today‚Äôs massive short covering in the euro.It was reported today that the Swiss National
Bank‚Äôs foreign currency holdings rose to CHF 153.6 billion in April from CHF
125.1 billion in March, the latest evidence of SNB intervention.U.S. dollar bids are cited around the US$
1.1110 level.The euro gained ground vis-√†-vis the Swiss franc as the single
currency tested offers around the CHF 1.4585 level while the British pound gained ground vis-√†-vis the Swiss franc and
tested offers around the CHF 1.6660 level.
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.