Forex Market Commentary and Analysis (31 May 2010)
The euro appreciated vis-√†-vis the U.S. dollar today as the single currency tested offers around the US$ 1.2330
level and was supported around the $1.2260 level. Liquidity was light on account of the Bank
holiday in the U.K. and Memorial Day holiday in the U.S.The common currency this month reached its
lowest level since April 2006 and tested the 50% retracement of its lifetime
range.The pair has not lost much ground
since Fitch‚Äôs downgrade of Spain‚Äôs credit rating late last week.European Central Bank member Honohan said he
welcomes the ECB‚Äôs bond purchases as an ‚Äúimportant‚ÄĚ new tool and said money
markets have evidenced a ‚Äúdegree of normalization.‚ÄĚIn contrast, ECB member Weber said he remains
critical of ECB bond purchases and said they must not exceed ‚Äútight
limits.‚ÄĚECB member Makuch said ‚Äúthe
euro is very close to fundamentals. That‚Äôs good. It supports our exports.I‚Äôm happy with it.‚ÄĚMakuch also called for the creation of a
European ratings agency.‚ÄĚECB member
Draghi said there is ‚Äúno turning back from the euro.‚ÄĚ Three-month Euribor
lending rates rose to 0.701% today, its highest level since late December as
fears about regional banks continued to dent confidence.ECB President Trichet called the euro a
‚Äúcredible currency‚ÄĚ and said it is keeping value in ‚Äúremarkable fashion.‚ÄĚData released in the eurozone today saw the
EMU-16 May business climate indicator improve to 0.34 from the prior reading of
0.28 while May industrial confidence improved to -6.May consumer confidence was unchanged at -18
and May economic confidence dropped to 98.4.May services confidence fell to +3 from +6 and the May consumer price
inflation estimate was up 1.6% y/y.Also,
the EMU-16 M3 money supply was off 0.1% y/y.In U.S. news, Chicago Fed
President Evans reported he ‚Äúwouldn‚Äôt be surprised‚ÄĚ if the Fed‚Äôs policy
normalization ‚Äúgets extended a little bit‚ÄĚ on account of the European debt
crisis.Evans also said inflation is
‚Äúseriously under-running‚ÄĚ price stability and added unemployment ‚Äúis very
high.‚ÄĚFed Chairman Bernanke reiterated
recent comments and Philadelphia Fed President Plosser said the U.S. will
continue to see employment and economic growth.Euro offers are cited around the US$ 1.2620 level.
The yen depreciated vis-√†-vis the U.S. dollar today as the
greenback tested offers around the ¬•91.60 level and was supported around
the ¬•90.90 level. The pair was bid
higher and the yen was given across the board following some political drama in
Japan where Prime Minister Hatoyama‚Äôs popularity reached a new low, less than
two months before parliamentary elections.The Social Democratic Party left Hatoyama‚Äôs coalition government this
weekend in opposition to Japanese approval to relocate a U.S. base within
Okinawa.Bank of Japan Governor
Shirakawa reported ‚Äú‚Ä¶the greatest challenge Japan‚Äôs economy is facing now is
the decline in the potential growth rate as well as the shrinking of the
population and sluggish productivity growth underlying this.‚ÄĚSpeaking about the global increase in fiscal
spending, Shirakawa added ‚ÄúFiscal policies are not a cornucopia.Policymakers should work to appropriately
conduct policies so as to maintain sufficient market confidence.In this regard, current events seem to have
served as a ‚Äėwakeup call‚Äô to many countries.‚ÄĚRegarding inflation, Shirakawa added ‚ÄúConcerning inflation-targeting,
there are expectations that expanding the central bank‚Äôs balance sheets would
help Japan escape deflation and cause inflation rates to rise.But the central banks of Japan, the U.S., and
Europe have expanded balance sheets only to see drops in inflation rates.Expanding central bank balance sheets does
not immediately cause prices to rise.‚ÄĚRegarding economic growth, Shirakawa noted ‚ÄúJapan‚Äôs economy is making
firm progress toward sustainable growth.We need to be mindful of upside and downside risks.‚ÄĚData released in Japan overnight saw May
manufacturing PMI improve to 54.7 while April industrial production was up 1.3%
m/m and 25.9% y/y.April labour cash
earnings were up 1.5% y/y and April housing starts were up an annualized 0.6%
y/y to 793,000 units. Also, April construction orders were off 25.0% y/y.Notably, manufacturing PMI reached its
highest level in nearly four years.The
Nikkei 225 stock index climbed 0.06% to close at ¬•9,768.70.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 ¬•112.90 level and was supported around the ¬•111.55
level.The British pound moved higher vis-√†-vis the yen as sterling tested
offers around the ¬•132.85 level while the
Swiss franc moved higher vis-√†-vis the yen and tested offers around the ¬•79.30
level. In Chinese news, the U.S.
dollar depreciated vis-√†-vis the Chinese yuan as the greenback closed at CNY
6.8278 in the over-the-counter market, down from CNY 6.8315. Data to be released in China overnight
including May manufacturing PMI.Yuan
forwards were little changed on renewed speculation the Chinese government will
not permit the yuan to appreciate in the short term before Europe‚Äôs sovereign
credit crisis eases.
British pound appreciated vis-√†-vis the U.S. dollar today as cable tested offers
around the US$ 1.4530 level and was supported around the $1.4400 figure. U.K. markets were closed today for the Bank
holiday.Data released in the U.K.
overnight saw May Hometrack house prices up 0.2% m/m and 2.0% y/y.Data to be released this week include May
Halifax house prices, May PMI manufacturing, April net consumer credit, April
mortgage approvals, May Nationwide house prices, and May PMI services.Cable bids are cited around the US$ 1.4110
level.The euro depreciated vis-√†-vis the British pound as the single
currency tested bids around the ¬£0.8475 level and was capped around the ¬£0.8520
franc appreciated vis-√†-vis the U.S. dollar today as the greenback tested bids
around the CHF 1.1540 level and was capped around the CHF 1.1590 level.Swiss National Bank member Leuthard on Friday
said Switzerland is interested in a ‚Äústable euro,‚ÄĚ adding the central bank‚Äôs
euro reserves have risen to 52%.SNB has
undertaken significant franc-selling intervention this year to address the
depreciation of 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 1.4210 level while the
British pound gained ground vis-√†-vis the Swiss franc and tested offers
around the CHF 1.6810 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 12 Mar 2018 A 17:00 US- 3-Yr Auction Tue 13 Mar 2018 A 10:00 DE- ZEW Survey AA 12:30 US- CPI A 17:00 US- 10-Yr Auction Wed 14 Feb 2018 AA 12:30 US- Retail Sales A 12:30 US- PPI A 14:30 US- EIA Crude A 17:00 US- 30-Yr Auction Thu 15 Mar 2018 A 12:30 US- Weekly Jobless A 12:30 US- Philly Fed, Empire PMI A 12:15 US- Industrial Production Fri 16 Mar 2018 A 10:00 EZ- final HICP A 12:30 US- Housing Starts/Permits A 14:00 US- prelim Univ of Mich
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.