U.S. Dollar weakens as Investors put Risk Back on the Table
The U.S. Dollar finished the day down against most major
currencies with the exception of the Japanese Yen. Low volume ahead of Fridayâ€™s
U.S. Employment report may have contributed to the weakness in the Dollar as
traders threw their support into the higher-risk, commodity-linked currencies
after the thinly traded equity markets posted strong gains.
The EUR USD traded higher but inside of Tuesdayâ€™s range.
This pattern indicates impending volatility. The lack of fresh news today helped
to hold the market steady. A late session surge in U.S. equity markets helped turn the
Euro positive shortly before the close.
Lately the news coming out of the Euro Zone hasnâ€™t been
encouraging for the bulls but hasnâ€™t offered any surprises for the bears
either. Look for an acceleration to the downside if bottom at 1.2110 fails to
hold. Watch for a change in trend if the market can muster enough momentum to
take out the last swing top at 1.2453. Volatility is expected to come back into
the market in a big way so be prepared for unexpected news.
The strong rise in crude oil and U.S. equities put pressure on the
USD CAD all session. Volatility is much higher today compared with Tuesday when
the market barely reacted to the news of an interest rate hike by the Bank of
Wednesdayâ€™s break took out two key levels at 1.0481 and
1.0394 while changing the trend to down on the move through the last swing
bottom at 1.0413.Signs that the global
recovery may be back on track are likely to continue to strengthen demand for
higher risk assets, especially crude oil. Losses may be limited by the news
that the BoC is not likely to hike interest rates in July due to unstable
conditions in the global economy.
The GBP USD posted a strong gain overnight to continue its
move toward a major 50% price level at 1.4810 but buying dried up as the
euphoria from the collapse of the Prudential/AIG deal wore off. Tuesdayâ€™s surge
after the deal was cancelled was attributed to the short-covering of hedges
placed by Prudential. Once they were done covering, no one was left to buy. A
lower close today will form a daily closing price reversal top. This pattern
usually sets up a 2 to 3 day break with the first objective 50% of the first
leg up. The charts suggest a pull-back to at least 1.4499 or perhaps 1.4435 is
likely during the 2 to 3 day time frame.
The USD CHF closed lower, and like the Euro had an inside
day formation, indicating impending volatility. If the Euro rallies, then look
for the Dollar/Swiss to take out the last swing bottom at 1.1469. A move
through this price will turn the main trend down and could trigger a correction
back to 1.1309 to 1.1218.
The USD JPY soared on Wednesday, buoyed by greater demand
for risky assets and on speculation that the next prime minister will favor a
The Japanese Yen began to weaken overnight following the
resignation of Japanese Prime Minister Yukio Hatoyama.Traders are worried that the economy will
weaken further during the election process at a time when Chinaâ€™s economy is slowing and Europe
continues to struggle. In addition, speculators sold the currency because they
believe the next prime minister will be NaotoKan who favors a weaker currency.
equity markets also contributed to the weakness in the Japanese Yen.
After piercing a key 50% retracement level at 91.61
overnight, the USD JPY was able to establish support at this level, setting up
a further rally to the Fibonacci retracement level at 92.41.A trade over this price could trigger an
acceleration to the upside.
The AUD USD rallied sharply higher after once again finding
support at a key 50% price level at .8308. The catalyst behind Wednesdayâ€™s
rally was the strength in the U.S.
equity markets and the better than expected U.S. Home Sales Report which
indicated the global economy may be back on track.
Thin trading conditions contributed to the strength in the U.S. equity
markets which means that this rally may be short-lived. Many of the larger
traders and institutions are standing on the sidelines ahead of Fridayâ€™s
Non-Farm Payrolls report. Todayâ€™s rally is likely just position squaring and
risk paring ahead of the report. Weakness will develop if selling hits the
equities again and the Aussie canâ€™t hold the retracement level at .8251. On the
upside, momentum and short-covering could drive this market to .8550 over the
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 17 July 2018 AA 08:30 GB- Employment A 13:15 US- Industrial Production AA 14:00 US-Powell Testimony Wed 18 July 2018 AA 08:30 GB- CPI A 12:30 US- Housing Starts/Permits AA 14:00 US-Powell Testimony Thu 19 July 2018 AA 1:30 AU- Employment AA 08:30 GB- Retail Sales A 14:30 US- EIA Crude A 12:30 US- Weekly Jobless Fri 20 Jun 2018 A 12:30 CA- CPI/Retail Sales
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.