User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday March 22, 2005 - 23:25:42 GMT
DailyFX.com - www.dailyfx.com

Share This Story:
| | Email

Dollar Collapses As Statement Suggests Fed May Remove Measured In May

DailyFX Fundamentals 03-22-05

By Kathy Lien, Chief Strategist of www.dailyfx.com

· Dollar Collapses As Statement Suggests Fed May Remove Measured In May
· US Producer Prices Confirm Rising Inflation Pressure
· Pound Sells Off On Muted UK Inflation Data

EURUSD

The dollar soared against the euro as the Fed did everything that dollar bulls could have hoped for aside from removing the phrase measured from their statement. The Fed raised rates by a quarter of a point to 2.75%, which is the seventh consecutive rate hike for the central bank since they first began tightening last June. The actual tightening was not what the market was focusing on. Instead, traders were specifically eyeing the phrase "measured" within the statement for potential changes. To the disappointment of dollar bulls the Fed opted to retain the phrase for at least another month. Yet many of our traders were confused as to why the dollar rallied if the Fed did exactly what the market expected – which was increase by a quarter point and keep “measured.” The explanation is that even though they left this pivotal phrase in, everything else in the statement was bullish and upgraded a notch, which implies that "measured" could be taken out of the statement as early as May (more on rate decision in dollar section). As we stand right now, the US has higher rates than both Europe and Canada. This gave euro bears a great reason to dump the single currency and they did so aggressively, sending the pair sliding to a low of 1.3060. Weaker French consumer spending also did not help the euro. The latest release indicates that a high unemployment rate and rising oil prices has hurt the appetite of French consumers.

USDCHF

Inflation is becoming an increasing concern, as the Fed acknowledges that "inflation has picked up in recent months and pricing power is more evident." The key point that we observed aside from the upgraded inflation comments and output growth is that the Fed believes that "with appropriate monetary policy action," the balance of risks to sustainable growth and price stability can be kept roughly equal. This suggests that they will be keeping a tight rein on monetary policy and if inflation spirals out of control, they may elect to tighten by more than quarter point clips to make sure that these risks remain roughly equal. With the market hinging upon the statement, the Fed took a baby step towards more hawkish policy. The dollar has reacted just the way the central bank probably anticipated - initially selling off at the inclusion of the "measured" phrase at first glance and then rallying in anticipation of the removal of the phrase the next time around. More interest rate hikes are still in store here in the US, especially since the Fed said that monetary policy is still accommodative. The dollar continues to rally, as the US will be the only major central bank to aggressively raise rates this year. Greenspan has full intention of bringing rates back to neutral, which is the rate that does not spur growth or inflation. This is estimated to be between 3-4.50% - so hang tight for at least another 75-150bp of rate hikes.

GBPUSD

Tracking the losses in the euro, the British pound also broke down against the US dollar. Consumer and retail price growth held steady during the month of February. The rebound after January’s dip provides little pressure for the Bank of England to make a preemptive move. Airfare and utility costs were higher as a direct result of the rise in oil prices last month. However, some of this upward pressure was offset by lower costs for furniture, household equipment and consumer electronics. Total business investment also experienced the weakest increase in four quarters as the spending growth by distribution services contracted in Q4. Tomorrow is a big day for the UK. The market is expecting the minutes from the Bank of England’s meeting earlier this month, GDP and Current Account data for the fourth quarter. With all eyes on data that could signal the Bank of England’s next move, the minutes will be closely watched to see how many members voted in favor of a rate hike this month.

USDJPY

The dollar is stronger against the Japanese Yen following the Fed’s rate hike. Yet in the land of the rising sun, we learned that the central bank discussed the possibility of reducing the current account balance at their February BoJ monetary policy meeting. Such action would be interpreted, as a tightening of monetary policy that the group agreed later on is not immediately necessary. Only one member brought up this discussion, which may not be a very accurate reflection of what the monetary policy committee as a whole may be considering at this juncture. Moving over to China once again, the head of China’s central bank said yesterday that the government may speed up its development of the foreign exchange market. This follows the recent article in the Beijing Daily about possible revaluation announcements and China’s previous announcement of developing an “internal” inter-bank system. A former Hong Kong monetary authority official added that China would probably need to revalue by 10% to please the international community.

 

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 18 December 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

Mon 18 Dec
10:00 EZ- final HICP
Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account
Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude
Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP
Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes
Mon 25 Dec
00:00 Christmas Holidays

Forex Trading Outlook


Potential Trading Opportunities

  • POTENTIAL PRICE RISK: Medium Mon--10:00 GMT-- EZ- final November HICP. flash data are rarely changed.


  • POTENTIAL PRICE RISK: HIGH- Medium Tue --09:00 GMT-- DE- IFO Survey. Key report but usually not a market-mover
  • POTENTIAL PRICE RISK: HIGH- Medium- Tue --13:30 GMT-- US- Housing Starts and Permits. Leading indicators of activity

  • POTENTIAL PRICE RISK: HIGH-Medium- Wed --15:00-- US- Existing Homes Sales. Top Housing statistic
  • POTENTIAL PRICE RISK: Medium- Wed --15:30-- US- EIA Crude

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