Forex Market Commentary and Analysis (25 May 2010)
The euro depreciated sharply vis-√†-vis the U.S. dollar
today as the single currency tested bids
around the US$ 1.2175 level and was capped around the $1.2370 level. The situation in Europe worsened dramatically
overnight.First, yieds on German
government 10-year bunds reached a record low, reflecting the safe haven play
that many nervous investors and traders are seeking.Yields on French 10-year debt also reached a
record low overnight.Second, the German
government has now proposed a ban on the naked short-selling of all German
equities, a broad expansion of the plan announced two weeks ago.In addition, Germany‚Äôs plan calls for a ban
on the short-selling of certain types of eurozone bonds and certain types of
credit default swaps.Other eurozone
countries have not yet followed suit with similar banks and the common currency
is suffering as a result of the perception of a lack of cohesion with regard to
policymaking.Third, there is a sense
that more European banks will fail.Yesterday, four regional Spanish savings banks announced a plan to
combine forces to stave off concernsfollowing
the nationalization of one savings bank.The yield spread between Spanish 10-year bonds and German 10-year bunds
widened fourteen basis points to 154 bps, the highest levels since 7 May.Fourth, there is talk the European Union will
introduce a new up-front tax on banks to help stabilize the financial
system.European Central Bank member
Nowotny reiterated the ECB is ‚Äúfiercely independent‚ÄĚ and said it is not
engaging in quantitative easing.Data
released in the eurozone today saw EMU-16 March industrial new orders up 5.2% m/m
and 19.8% y/y.In U.S. news, the March Case-Sehiller home price index was off a
marginal 0.05% m/m and up 2.35% y/y.Other data to be released today include the May Richmond Fed
manufacturing index and March house price index.St. Louis Fed President Bullard reported the
trajectory of U.S. interest rates depends on the economic recovery into
2011.Euro offers are cited
around the US$ 1.2620 level.
The yen appreciated vis-√†-vis the U.S. dollar today as the
greenback tested bids around the ¬•89.25 level and was capped around
the ¬•90.30 level. Dealers added to long
yen positions on escalating concerns about the European debt crisis and a
worsening regional situation involving the two Koreas.North Korean leader Kim Jong-Il is said to
have ordered his military on ‚Äúcombat footing‚ÄĚ while South Korea is said to have
restarted ‚Äúpsychological warfare‚ÄĚ against the north.These measures are in response to the sinking
of a South Korean submarine, allegedly by North Korea.Japan strategy minister Sengoku warned the European
economy will not recover soon.Three-month Libor rates for yen loans grew to 0.2456% and three-month
U.S. dollar Libor is now 0.50969%, the highest level since 16 July.Traders await the release of April Bank of Japan
Policy Board meeting minutes overnight along with the April corporate service
price index.The Nikkei 225 stock index
lost 3.06% to close at ¬•9,459.89.U.S.
dollar offers are cited around the ¬•96.85 level.The
euro moved lower vis-√†-vis the yen as the single currency tested bids around
the ¬•108.80 level and was capped around the ¬•111.65 level.The
British pound moved lower vis-√†-vis the yen as sterling tested bids around
the ¬•127.65 level while the Swiss franc moved
lower vis-√†-vis the yen and tested bids around the ¬•76.40 level. In Chinese news, the U.S. dollar appreciated
vis-√†-vis the Chinese yuan as the greenback closed at CNY 6.8315 in the
over-the-counter market, up from CNY 6.8287. Data released in China overnight saw the April
leading index decline to 104.36.The
State Administration of Foreign Exchange indicates China has not had
large-scale ‚Äúhot money‚ÄĚ inflows ahead of the possible revaluation and
appreciation of the yuan.People‚Äôs Bank
of China sold one-year bills at an unchanged yield of 1.9264% in open-market
operations today, the seventeenth consecutive time it has not changed
yields.Some dealers believe PBoC will
increase the yield on its bills to absorb excess liquidity in the money
markets. Chinese yuan forwards came off their most in fifteen months on the
European debt crisis today, bringing into question whether or not China will
revalue the yuan with the global economy on a relatively weak footing.U.S. Treasury Secretary Geithner
characterized U.S.-Chinese talks on the yuan as ‚Äúencouraging.‚ÄĚYesterday, People‚Äôs Bank of China adviser Li
Daokui today said ‚ÄúPolitically it is worthwhile, it makes sense, for the two
sides ‚Äď China and the U.S. ‚Äď to see some progress in renminbi reform in the
British pound depreciated vis-√†-vis the U.S. dollar today as cable tested bids
around the US$ 1.4255 level and was capped around the $1.4420 level. Data released in the U.K. today saw Q1 gross
domestic product up 0.3% q/q and off 0.2% y/y. Bank of England Monetary Policy Committee member
Posen said he cannot rule out deflationary pressures in the U.S. and U.K.
economies.Chancellor of the Exchequer
Osborne yesterday reported the new Cameron government hopes to decrease fiscal
spending by at least ¬£6 billion in what would be an abrupt shift from the
policies of former Prime Minister Brown.Outgoing Bank of England Monetary Policy Committee member Barker
reported more difficult times are ahead for the U.K. economy.Cable bids are cited around the US$ 1.4110
level.The euro depreciated vis-√†-vis the British pound as the single
currency tested bids around the ¬£0.8510 level and was capped around the ¬£0.8585
franc depreciated vis-√†-vis the U.S. dollar today as the greenback tested offers
around the CHF 1.1695 level and was supported around the CHF 1.1580 level.Data released in Switzerland today saw the
April UBS consumption indicator improve to 1.763 from the revised print of 1.682
in March.There is a growing sense among
traders that Swiss National Bank may be unable to keep up with market
speculation and may be forced at some point to abandon its franc-selling
intervention operations on account of the major global bearish sentiment that
overhangs the common currency.U.S.
dollar bids are cited around the US$ 1.1110 level.The
euro lost ground vis-√†-vis the Swiss franc as the single currency tested bids
around the CHF 1.4205 level while the
British pound lost ground vis-√†-vis the Swiss franc and tested bids around
the CHF 1.6585 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.
Tue 31 July 2018 AA JP- Bank of Japan A 06:00 DE- Retail Sales A 09:00 EZ- flash HICP/GDP AA 12:30 US- Core PCE Deflator A 14:00 US- CB Consumer Confidence Wed 1 Aug 2018 A Final Mfg PMIs AA 12:15 US- ADP Private Payrolls A 15:00 US- EIA Crude AA 18:00 US- Federal Reserve Decision Thu 2 Aug 2018 AA 11:00 GB- Bank of England Decision A 13:30 US- Weekly Jobless Fri 3 Aug 2018 A Final Services PMIs AA 12:30 US- Employment A 12:30 US/CA- Trade
John M. Bland, MBA co-founding Partner, Global-View.com
Global-View Affiliate Program
We are starting an affiliate program to market some of our products.
Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.
Put the word "affiliate" in the email subject line.
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.