User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday June 1, 2010 - 14:14:31 GMT
GCI Financial - www.gcitrading.com

Share This Story:
| | Email

Forex Market Commentary and Analysis (1 June 2010)

The euro depreciated sharply vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.2110 level and was capped around the $1.2310 level.  Today’s intraday low represented a new four-year low and the common currency moved lower as eurozone unemployment reached its highest level in April since June 1998, at 10.1%.  These data are the latest indication the eurozone sovereign debt crisis is having a profound impact on the labour market.  The continued depreciation of the euro means more traders are viewing the common currency as a funding currency for carry trades.  Dealers also dumped the common currency on escalating concerns Europe’s credit woes would lead to larger-than-expected losses at regional banks.  Yesterday, the ECB warned  that eurozone banks could face as much as €195 billion in additional loan losses over the next eighteen months on account of the financial crisis.  The ECB also reported it increased its purchases of eurozone government bonds.  ECB member Nowotny said the ECB’s bond purchase program will continue until there is financial stability in the eurozone, adding there “is no quantitative goal.” Yesterday, ECB member Weber said monetary policy has been expanded to include new measures “that I continue to see in a critical way due to the stability risks.”  Weber also yesterday called for “heightened alertness.”  There are also reported tensions between Germany and France with the former possibly complaining the latter is not doing enough to bail out their eurozone member partners.  The ECB reported banks deposited €305 billion with it overnight.  Other data released today saw EMU-16 May PMI manufacturing tick lower to 55.8 while German provisional May unemployment was lower by 45,000 and the unemployment rate came in at 7.7%.  Also, May PMI manufacturing improved to 58.4 and German April retail sales were up 1.0% m/m and off 3.1% y/y.  French data released today saw April producer prices up 1.0% m/m and 4.0% y/y with May PMI manufacturing lower at 55.8.  In U.S. news, data released today saw May ISM manufacturing decrease to 59.7          while the ISM prices paid index fell to 77.5.  Also, April construction spending                           improved 2.7% m/m.  Chicago Fed President Evans yesterday reported that targeted asset purchases are more effective at addressing financial crises than straight injections of cash.  Some Fed-watchers are expressing concern that the Fed may be too dovish in calculating that the full rate of employment is now between 5% and 5.3%.  If the Fed waits until the unemployment rate gets that low before making material adjustments to short-term interest rates, it could risk fueling inflation.  Euro offers are cited around the US$ 1.2620 level. 

¥/ CNY

The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥90.55 level and was capped around the ¥91.25 level.  Risk aversion returned to the market after the long holiday weekend in some trading centers as traders deliberated a slowdown in Chinese economy activity and a worsening fiscal situation in Europe.  Bank of Tokyo is now forecasting the euro may weaken to US$ 1.16 by the fourth quarter and some policymakers are concerned that additional euro weakness could lead to too much appreciation of the yen.  Prime Minister Hatoyama’s popularity has reached a new low, less than two months before parliamentary elections.  The Social Democratic Party left Hatoyama’s coalition government this weekend in opposition to Japanese approval to relocate a U.S. base within Okinawa.  Bank of Japan Governor Shirakawa yesterday reported “…the greatest challenge Japan’s 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.”  Speaking about the global increase in fiscal spending, Shirakawa added “Fiscal 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 ‘wakeup call’ to many countries.”  Regarding inflation, Shirakawa added “Concerning inflation-targeting, there are expectations that expanding the central bank’s 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.”  Regarding economic growth, Shirakawa noted “Japan’s economy is making firm progress toward sustainable growth.  We need to be mindful of upside and downside risks.”  Data to be released in Japan overnight include the May monetary base.  The Nikkei 225 stock index lost 0.58% today to close at ¥9,711.83.  U.S. dollar offers are cited around the ¥96.85 level.  The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥109.75 level and was capped around the ¥112.30 level.  The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥133.10 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the ¥77.45 level. In Chinese news, the U.S. dollar appreciated vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8306 in the over-the-counter market, up from CNY 6.8278.   Dealers expressed concern about a sharper-than-expected decline in May PMI manufacturing that saw the May level decline to 53.9 while the HSBC manufacturing PMI measure weakened to 52.7 from the revised prior reading of 52.7.  Honda Motors reported its automobile production in China will remain halted until at least 3 June on account of a strike.  People’s Bank of China lifted yields on one-year bills for the first time in four months as inflation is picking up and the central bank is attempting to absorb excess cash from the money market.  A PBoC adviser warned China’s property problems are more severe than the U.S.’s real estate problems.  Spreads on Chinese property company bonds are widening away from U.S. Treasuries. 

£

The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.4615 level and was supported around the $1.4435 level.  Sterling partially moved higher on account of its current retention of its AAA credit rating.  In contrast, Spain’s credit rating was downgraded last week and the U.K. media today reported France could lose its vaulted rating as well.  Data released in the U.K. today saw May PMI manufacturing remain unchanged at 58.0, beating expectations.  Cable bids are cited around the US$ 1.4220 level.  The euro depreciated vis-à-vis the British pound as the single currency tested bids around the £0.8320 level and was capped around the £0.8475 level.

CHF

The Swiss franc depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.1730 level and was supported around the CHF 1.1525 level.  Data released in Switzerland today saw Q1 gross domestic product climb 0.4% q/q and 2.2% y/y while May PMI defied expectations and rallied to 66.4, up from the prior reading of 65.9.  April retail sales data will be released tomorrow.  Swiss National Bank member Leuthard on Friday said Switzerland is interested in a “stable euro,” adding the central bank’s 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$ 1.1420 level.  The euro lost ground vis-à-vis the Swiss franc as the single currency tested bids around the CHF 1.4155 level while the British pound gained ground vis-à-vis the Swiss franc and tested offers around the CHF 1.7050 level.

 

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