Dollar Tumbles against Euro and Commodity-Linked Currencies
The U.S. Dollar hit a six-week low against the Euro driven
by greater demand for risky assets and a hawkish comment from the Reserve Bank
A mid-morning report showing that the U.S. Services Sector slowed last month
also contributed to the Euroâ€™s rally on the prospects of a weaker outlook for
The recent strength in the Euro versus the Dollar is an
indication that investors are adjusting positions and absorbing the shift in
the recent economic data. Todayâ€™s turnaround in many of the Forex markets
demonstrates investor willingness to buy riskier assets.
Recent weak U.S.
economic releases have encouraged traders to move into a market psychology
where poor data triggers Greenback weakness. Earlier in the year, investor
sentiment was the opposite. At that time, weak data triggered flight-to-quality
buying of the Dollar.
Although a reading over 50 still indicates an expanding
economy, todayâ€™s ISM report showing a drop from 55.4 in May to 53.8 could be a
sign that the pace of the expansion is slowing. This news helped drive an
already weak Dollar sharply lower almost immediately after its release. Later
during the trading session, short-term overbought conditions helped the
Greenback regain some of its earlier losses.
Last weekâ€™s upside momentum in the EUR USD continued this
morning. Technically, the main trend is up. The charts indicate that the market
has a clear shot at reaching a major retracement price at 1.2783.
Another sign that investors were shifting sentiment toward
more risky assets was the sharp rise in commodity-linked currencies. Early in
the trading session, the AUD USD reversed an overnight sell-off after the
Australian central bank issued a hawkish policy statement. The intra-day rally
put the Aussie in a position to form a closing price reversal bottom after
forming a support base inside of a retracement zone at .8469 to .8378.
Fundamentally, the market was supported by hawkish comments
from the Reserve Bank of Australia.
In its policy statement, the Australian Central Bank kept its benchmark
interest rate unchanged at 4.5%. It did, however, indicate that further rate
increases are to come even if inflation continues to increase and Chinaâ€™s economy
slows. Todayâ€™s strong rally reflects the fact that speculators had been looking
for more dovish comments from the RBA.
The strong rise in U.S. equities and a firm crude oil
market also triggered a sharp break in the USD CAD. Todayâ€™s chart action
indicates that further weakness is likely now that it appears that investors
have decided to explore the long-side of riskier assets.
Todayâ€™s statement by the RBA also is a strong indication
that the Bank of Canada will hike interest rates at its next meeting on July 20th.
Speculators had been positioning themselves for a neutral stance by the BoC.
Although the RBA left its benchmark rate unchanged, its hawkish comments leaves
open the strong possibility that another rate hike is imminent. Todayâ€™s sharp
turnaround in the Loonie was most likely short Canadian Dollar traders making a
hard, fast adjustment to the possibility of higher interest rates.
economic data and a shift in risk sentiment also pressured the USD JPY.
Although this currency pair appears to be rangebound while forming a support
base, traders can begin to anticipate a rally if U.S. equity markets begin to mount
a short-covering rally. This rally will most likely be fueled by investors
reapplying the carry trade strategy to the Japanese Yen. When this occurs,
investors borrow funds in the lower yielding Yen to invest in riskier assets
such as U.S.
Although there is likely to be profit-taking breaks along
the way, there has been a notable shift in investor mentality toward more risk.
Traders should be aware that weak U.S. economic reports are likely to
drive traders out of the Dollar and into more risky assets. The logic behind
this shift is that central banks will continue to keep the markets liquid. This
means interest rates for the weaker nations will continue to remain low.
Aggressive investors will be looking to find a place to put their money to work
in an effort to earn better yields in exchange for higher risk.
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.
Mon 19 Mar 2018 Tue 20 Mar 2018 AA 9:30 GB- CPI A 10:00 DE- ZEW Survey Wed 21 Mar 2018 AA 03:00 AU- Employment AA 9:30 GB- Employment A 12:30 US- Current Account AA 14:00 US- Existing Homes Sales A 14:30 US- EIA Crude A A18:00 US- Fed Rate Decision A 21:00 NZ- RBNZ Rate Decision Thu 22 Mar 2018 AA All Day flash PMIs AA 9:30 GB- Retail Sales AA 12:00 GB- Bank Of England Decision A 13:30 US- Weekly Jobless Fri 23 Mar 2018 AA 12:30 CA- CPI/Retail Sales A 12:30 US- Durable Goods A 14:00 US- New Homes Sales
John M. Bland, MBA co-founding Partner, Global-View.com
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.