Forex Market Commentary and Analysis (7 July 2010)
The euro depreciated vis-Ă -vis the U.S. dollar today as the single currency tested bids around the US$ 1.2555
level and was capped around the $1.2640 level. Concerns continue to mount that the global
economy is headed toward a double dip recession and higher-yielding currencies
like the common currency are at risk.Traders
also pared long euro exposure after it was reported that German May factory
orders slid 0.5% following Aprilâ€™s revised print of +3.2%.Economists had expected a May result of
around +0.3% and factory orders were up 24.8% y/y.Most
traders believe the European Central Bank will keep monetary policy unchanged
on Thursday. Remarks from President Trichet will likely focus on liquidity
provisions by the ECB and stress tests on eurozone banks.There is increasing chatter the ECB may be
forced to adopt a quantitative credit expansion to deal with problems in the
eurozone.Data released in the eurozone
today saw EMU-16 Q1 final gross domestic product up 0.2% q/q and 0.6% y/y,
unchanged from previous estimates or forecasts.Also, the French May trade balance worsened to -â‚¬5.5 billion from a
revised -â‚¬4.3 billion.In U.S. news, Dallas Fed President
Fisher said the Fed has â€śdone enoughâ€ť to stimulate economic growth. He added â€śInterest rates are zero.Itâ€™s not the cost of money that the issueâ€¦Companies
are hoarding cash, theyâ€™re holding back, theyâ€™re not hiring people, theyâ€™re not
building plant and equipment at the pace weâ€™d like to see.This has nothing to do with monetary
policy.We have been as accommodative as
possible.â€ťFisher also noted â€śDeflation,
as is inflation, are tail risks.â€ť Kansas City Fed President Hoenig reported a 1%
federal funds target rate â€śwouldnâ€™t hurt the economyâ€ť and said 3% economic growth
is â€świthin the realm of possibility.â€ť Data released in the U.S. today saw MBA
mortgage applications move lower to +6.7%.Euro offers are cited around the US$ 1.2720 level.
The yen appreciated vis-Ă -vis the U.S. dollar today as the
greenback tested bids around the ÂĄ87.00 figure and was capped around
the ÂĄ87.65 level. Traders continue to
buy yen on concerns the global economic recovery will be difficult to sustain
and weak equity markets also fueled yen gains.An intensification in risk aversion will likely benefit the yen
further.Data released in Japan
overnight saw June official reserve assets increase to US$ 1.050 trillion.Data to be released in Japan tonight include
June bank lending, May factory orders, May current account data, and the May
trade balance.Dealers are paying close
attention to Japanese politics where Prime Minister Kanâ€™s Democratic Party of
Japan party could lose its upper-house majority on 11 July.Kan and the DPJ are seeking to increase
taxes.The Nikkei 225 stock index climbed
0.77% to close at ÂĄ9,338.04.U.S. dollar
bids are cited around the ÂĄ86.29 level.The euro
moved lower vis-Ă -vis the yen as the single currency tested bids around the
ÂĄ109.30 level and was capped around the ÂĄ110.70 level.The
British pound moved higher vis-Ă -vis the yen as sterling tested offers
around the ÂĄ132.85 level while the Swiss
franc moved higher vis-Ă -vis the yen and tested offers around the ÂĄ82.95 level.
In Chinese news, the U.S. dollar depreciated
vis-Ă -vis the Chinese yuan as the greenback closed at CNY 6.7771 in the
over-the-counter market, down from CNY 6.7805. Peopleâ€™s Bank of China official Zhang reported
PBoC â€śmust deal withâ€ť excess liquidityâ€ť even as evidence emerges of slowing
domestic growth.Chinese officials seem
intent on countering inflation and containing liquidity. Agricultural Bank of
China appears poised to raise US$ 19.2 billion in its initial public
offering.The State Administration of
Foreign Exchange reported Chinaâ€™s holdings of U.S. Treasuries â€śshouldnâ€™t be
politicized.â€ťSAFE added the â€śnuclearâ€ť
option of liquidating its U.S. Treasury holdings is â€ścompletely unnecessary.â€ťPBoC official Yi indicated China does not
want to fight trade wars.
British pound appreciated vis-Ă -vis the U.S. dollar today as cable tested offers
around the US$ 1.5215 level and was supported around the US$ 1.5080 level.Data to be released in the U.K. tomorrow
include June Halifax house prices, May industrial production, May manufacturing
production, and the June NIESR GDP estimate.Bank of England is expected to keep its headline Bank rate target
unchanged tomorrow at 0.50% and to keep its asset purchase program unchanged at
ÂŁ200 billion.Traders will pay very
close attention to tomorrowâ€™s MPC vote to see if there are additional calls for
higher rates.Cable bids are cited around the US$ 1.4620
level.The euro depreciated vis-Ă -vis the British pound as the single
currency tested bids around the ÂŁ0.8300 level and was capped around the ÂŁ0.8335
franc appreciated vis-Ă -vis the U.S. dollar today as the greenback tested bids
around the CHF 1.0525 level and was capped around the CHF 1.0635 level. Data to be released in Switzerland tomorrow
include the June unemployment rate.Data
released in Switzerland this week saw June consumer price inflation off 0.4%
m/m and up 0.5% y/y, a moderation of price pressures.Swiss National Bankâ€™s foreign currency
holdings declined last month to CHF 225.8 billion from CHF 232.1 billion in May
as SNB officials stopped selling francs for euro or U.S. dollars.Swiss National Bank President Hildebrand this
week said he is â€śclosely monitoringâ€ť the franc, adding its fluctuation has
â€śclearly increased.â€ťU.S. dollar offers
are cited around the CHF 1.0980 level.The euro depreciated vis-Ă -vis the
Swiss franc as the single currency tested bids around the CHF 1.3265 level
while the British pound moved lower
vis-Ă -vis the Swiss franc and tested bids around the CHF 1.5965 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."
Actionable trading levels delivered to YOUR charts in real-time.
Mon 23 July 2018 A 14:00 US- Existing Homes Sales Tue 24 July 2018 AFlash PMIs Wed 25 July 2018 A 08:00 DE- IFO Survey A 14:00 US- New Homes Sales A 14:30 US- EIA Crude Thu 26 July 2018 AA 11:45 EZ- European Central Bank Decision A 12:30 US- Weekly Jobless A 12:30 US- Durable Goods Fri 27 July 2018 AA 12:30 US- GDP A 14:00 US- Final University of Michigan
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.