Forex Market Commentary and Analysis (10 June 2010)
The euro appreciated vis-√†-vis the U.S. dollar today as the single currency tested offers around the US$ 1.2140
level and was supported around the $1.1955 level.As expected, the European Central Bank kept
its main refinancing rate unchanged at 1.0% today and ECB President Trichet
noted the central bank would continue to offer three-month emergency loans to
financial institutions until September.Traders
also moved into euro after bond auctions in Spain and Italy were well-received
by investors, suggesting the threat of sovereign contagion may be
diminishing.Trichet said it will be ‚Äúappropriate‚ÄĚ
for the ECB to continue purchasing sovereign and corporate bonds, noting ‚Äúwe
have a money market that is not functioning perfectly.‚ÄĚ As a result, there is a
likelihood that official European interest remains will remain muted for quite
some time.The ECB also lifted its
eurozone growth forecast to 1.0% today from the previous estimate of 0.8% and
now expects the economy to expand about 1.2% in 2011, down from the previous
estimate of 1.5%.Data released in
Germany today saw May headline consumer price inflation up 0.1% m/m and 1.2%
y/y while the harmonized rate was up 0.1% m/m and 1.2% y/y.Other data saw April manufacturing production
up 0.4% m/m and 8.5% y/y while April industrial production was off 0.3% m/m and
7.9% y/y.Also, French Q1 non-farm
payrolls were up 0.2% q/q.In U.S. news, the April trade balance
deficit widened to ‚ÄďUS$ 40.3 billion from the revised previous tally of ‚ÄďUS$
40.0 billikon.Weekly initial jobless
claims fell to 456,000 while continuing hibless claims fell sizable to 4.462
million from an upwardly-revised 4.717 million.Data to be released tomorrow include May advance retail sales, mid-June
University of Michigan consumer sentiment, and April business inventories.The Fed reported its assets fell to US$ 2.33
trillion as some liquidity swaps with foreign central banks declined.Fed Chairman Bernanke yesterday characterized
the Fed‚Äôs debt as ‚Äúunsustainable.‚ÄĚEuro
offers are cited around the US$ 1.2330 level.
The yen depreciated vis-√†-vis the U.S. dollar today as the
greenback tested offers around the ¬•91.45 level and was supported around
the ¬•90.85 level. Global risk appetite
was stronger today compared with recent trading sessions and the yen was given
as a result.The yen remains technically
overbought and could snap back quickly as traders assume risk in
higher-yielding currencies.Bank of
Japan will soon release details about its latest plan to stimulate credit for
the private sector, an initiative likely to total several trillion yen.Data released in Japan overnight confirmed
Japan‚Äôs economy expanded at an annualized 5% rate in the three months that
ended 31 March, up from the previous estimate of +4.9% and the largest increase
since Q2 2009.The economy was up an
unchanged 1.2% q/q and the GDP deflator was off 2.8% y/y, up from the earliest
estimate of -3.0%.Other data released overnight
saw the May domestic corporate goods price index up 0.1% m/m and 0.4% y/y while
May consumer confidence improved to 42.7.New finance minister Noda this week reported ‚ÄúThe Bank of Japan has
taken steps based on its understanding of price stability as (inflation of
above) zero to 2 per cent ‚Äď with a median at 1 per cent ‚Äď which I think is
reasonable.Prime Minister Kan‚Äôs view is
that we should achieve above 1 per cent (inflation).I share his view but that is not to advocate
inflation targeting.‚ÄĚThe Nikkei 225 stock
index gained 1.09% to close at ¬•9,542.65.The euro moved higher vis-√†-vis
the yen as the single currency tested offers around the ¬•110.85 level and was supported
around the ¬•108.95 level.The British pound moved higher vis-√†-vis
the yen as sterling tested offers around the ¬•134.35 level while the Swiss franc moved higher vis-√†-vis
the yen and tested offers around the ¬•80.10 level. In Chinese news, the U.S. dollar appreciated vis-√†-vis the Chinese
yuan as the greenback closed at CNY 6.8307 in the over-the-counter market, up
from CNY 6.8280. People‚Äôs Bank of China this week warned Chinese economic
growth will continue to be impacted by global problems and said final domestic
private demand is still not ‚Äúsolid.‚ÄĚ PBoC noted an ‚Äúappropriately loose‚ÄĚ
monetary policy and a proactive fiscal policy will continue. Data released in China overnight saw May NDRC
housing prices move higher while the May trade balance grew more-than-expected
to US$ 19.53 billion on a 48.5% surge in exports. Many data will be released
tonight including May PPI, CPI, retail sales, and industrial production.People‚Äôs Bank of China has injected CNY 166
billion to the money market this week to ease pressure from the tightening
money supply.The State Administration
of Foreign Exchange reported China will see a ‚Äúlarge‚ÄĚ international payments
surplus in 2010.
British pound appreciated vis-√†-vis the U.S. dollar today as cable tested offers
around the US$ 1.4715 level and was supported around the $1.4510 level. As
expected, Bank of England‚Äôs Monetary Policy Committee voted to keep its main
Bank Rate unchanged at 0.50% today.The
BoE also kept its asset purchase target unchanged at ¬£200 billion.Inflation remains elevated in the U.K. but
the central bank is also trying to stimulate economic growth and will likely
not raise interest rates anytime soon.Prime Minister Cameron will unveil an emergency budget on 22 June.Cable bids are cited around the US$ 1.4220
level.The euro depreciated vis-√†-vis the British pound as the single
currency tested bids around the ¬£0.8220 level and was capped around the ¬£0.8280
franc appreciated vis-√†-vis the U.S. dollar today as the greenback tested bids
around the CHF 1.1395 level and was capped around the CHF 1.1505 level. Traders continue to test the resolve of the
Swiss National Bank to support the euro/ franc cross through continued
intervention.Swiss foreign reserves
have recently increased significantly and many dealers believe the central bank
cannot afford to keep intervening en masse.Data released in Switzerland this week saw the May unemployment rate
remain unchanged at 4.0% while May consumer price inflation was off 0.1% m/m
and up 1.1% y/y.U.S. dollar bids are
cited around the US$ 1.1310 level.The euro gained ground vis-√†-vis the
Swiss franc as the single currency tested offers around the CHF 1.3870 level
while the British pound gained ground
vis-√†-vis the Swiss franc and tested offers around the CHF 1.6840 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.