Forex Market Commentary and Analysis (2 June 2010)
The euro depreciated vis-√†-vis the U.S. dollar today as the single currency tested bids around the US$ 1.2175
level and was capped around the $1.2275 level. North American dealers lifted the common
currency from its intraday lows.European Commission President Barroso called for the establishment of an
independent European credit ratings agency.Iran‚Äôs central bank today reported it is selling ‚ā¨45 billion in reserves
for U.S. dollars.Three-month U.S.
Dollar Libor loans rose to 0.5375% today from 0.53625% yesterday.Its recent high was 0.53844% - reached on 27
May ‚Äď and this was the highest level since 6 July 2009.Libor has more than doubled in 2010 on
account of the deteriorating credit outlook for banks and the European
sovereign debt crisis.European Central
Bank member Noyer reported the current EUR/USD rate is ‚Äúby no means unusually
low.‚ÄĚ Spanish Prime Minister Zapatero said he will approve a labour market rule
change on 16 June and also noted financial markets are having a ‚Äúserious difficulty.‚ÄĚ
Greece reported it is establishing a holding company to help sell its state
assets and finance minister Papaconstantinou reported Greece will accelerate
privatizations.Data released in the
eurozone today saw EMU-16 producer price inflation up 0.9% m/m and 2.8%
y/y.In U.S. news, data released today saw MBA mortgage applications
decelerate to +0.9% while May Challenger job cuts were off 65.1% y/y.Also, April pending home sales were up 6.0%
m/m and 24.6% y/y.Philadelphia Fed
President Plosser said Fed policy will be impacted by the European Union
financial crisis.Euro offers are
cited around the US$ 1.2620 level.
The yen depreciated vis-√†-vis the U.S. dollar today as the
greenback tested offers around the ¬•92.20 level and was supported around
the ¬•90.90 level.The major news in
Japan overnight was the resignation of Prime Minister Hatoyama over his
handling of the U.S. military base relocation on Okinawa.A successor has not yet been named but one
possibility receiving a lot of attention is finance minister Kan.The market impact will probably be limited
over the long-term as Japan does not have much room to issue more debt.If Kan becomes the new Prime Minister, it is
possible that Vice finance minister Noda will become the new financial
minister.Lower-house elections are
forthcoming and the Democratic Party of Japan has a tenuous grip on power.Bank of Japan sources indicated the central
bank may lend at least ¬•1 trillion to commercial banks under its new loan
program, details of which were announced in May.Japan continues to suffer from moderate
deflation that monetary policy and fiscal policy have been unable to resolve.Data released in Japan overnight saw the May
monetary base up 3.7% y/y and data to be released tonight include Q1 capital
spending.The Nikkei 225 stock index
lost 1.12% to close at ¬•9,603.24.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 ¬•112.70 level and was supported around the ¬•111.00 figure.The
British pound moved higher vis-√†-vis the yen as sterling tested offers
around the ¬•135.40 level while the Swiss
franc moved higher vis-√†-vis the yen and tested offers around the ¬•79.70
level. In Chinese news, the U.S.
dollar depreciated vis-√†-vis the Chinese yuan as the greenback closed at CNY
6.8298 in the over-the-counter market, down from CNY 6.8306. Former People‚Äôs Bank of China adviser Fan Gang
reported China needs to implement local government debt quotas.Many dealers believe China faces a massive
property bubble and needs to rein in further housing speculation. PBoC adviser
Li today estimated China‚Äôs mainland inflation may reach 3.7% this year, noting
China is ‚Äúlightly overheating.‚ÄĚPBoC
Governor Zhou reported China has ‚Äúpromptly‚ÄĚ curbed its economic downturn.
British pound depreciated vis-√†-vis the U.S. dollar today as cable tested bids
around the US$ 1.4550 level and was capped around the $1.4770 level. Bank of England Governor King said the system
must seize the opportunity for reform and banks should not be permitted to be ‚Äútoo
big to fail.‚ÄĚKing reiterated support
for the BoE‚Äôs policy framework, reporting ‚ÄúDespite its volatility, inflation
remains low by historic standards, and on track to meet the target in the
medium term. The framework has proved resilient to the stress of the financial
crisis.It guided our monetary decisions
going out into the crisis, and it will guide them coming out of it.‚ÄĚData released in the U.K. today saw April net
consumer credit decline to -¬£100 million from the revised prior reading of +¬£100
million while April net lending secured on dwellings printed at ¬£500 million,
up from the prior reading of ¬£200 million.April mortgage approvals grew marginally to 49,000 and the M4 money
supply was up 0.0% m/m and 3.3% y/y.Finally, May PMI construction improved to 58.5.Cable bids are cited around the US$ 1.4220
level.The euro appreciated vis-√†-vis the British pound as the single
currency tested offers around the ¬£0.8375 level and was supported around the ¬£0.8280
franc depreciated vis-√†-vis the U.S. dollar today as the greenback tested offers
around the CHF 1.1600 figure and was supported around the CHF 1.1525 level. Data released in Switzerland today saw April
retail sales up 1.3% y/y, down from a revised 4.0% in March.Swiss National Bank member Leuthard on Friday
reported the SNB 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$ 1.1420
level.The euro lost ground vis-√†-vis the Swiss franc as the single
currency tested bids around the CHF 1.4120 level while the British pound lost ground vis-√†-vis the Swiss franc and tested bids
around the CHF 1.6860 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."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
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.