Trichet Softens Concerns about Stress Tests; Euro Takes Direction from U.S. Equities
The Euro rallied early, traded in a range then made a move
to the upside in a lifeless trade on Thursday. Volume appeared to drop off
throughout the day following the European Central Bankâ€™s policy statement
announcement shortly before the start of the New York session. For the most part, the
Euro seemed to be taking its direction from the U.S. equity markets.
Earlier this morning the European Central Bank said that
interest rates would remain at a historically low level. While this was
expected, traders turned their focus toward ECB President Trichetâ€™s press
Trichet mentioned that the ECB will continue to provide
unlimited stimulus and liquidity to the financial system but the news that
really helped move the Euro higher was his â€ślackâ€ť of comments on the bank
stress tests. The fact that he didnâ€™t say anything negative about the tests may
have actually instilled confidence in investors.
Investors have been pessimistic about the bank stress tests
because they feel that they may not be stringent enough to reveal any serious
problems with the bank balance sheets. They had been expected Trichet to reveal
a little more about the scope of the tests but had to settle for limited
commentary. Since he didnâ€™t say much other than investors should wait and see
the results before judging, traders decided to take the â€śno news is good newsâ€ť
approach and rallied the Euro. The only negative that could have been construed
by investors was his comment that banks may have to recapitalize after the
publication of the stress tests.
This morningâ€™s friendly U.S. Weekly Initial Jobless Claims
Report helped bolster stock index futures before the opening, sending the Euro
and commodity-linked currencies higher. As stocks began to weaken as the
session approached its mid-session, traders began to take profits in the Euro.
The strong finish in the stock futures markets helped drive the Euro up into
Technically the Euro main trend is up on the daily chart.
This market has entered a key retracement zone at 1.2609 to 1.2782. Holding the
latter number is considered a sign of strength.
Based on the current trading action in the market, it looks
as if the direction of the Euro will be determined by the movement in the U.S.
stock market. As long as demand remains firm for equities, traders should look
for continuing strength in the Euro.
Despite the pick-up in demand for higher yielding assets and
the generally weak tone in the Dollar, the British Pound finished lower.
This morning the Bank of England left interest rates
unchanged as expected. The BoE is most likely going to leave interest rates at
these low levels for a prolonged period of time because of the new financial
austerity measures proposed by the new government. The BoE is concerned about
high inflation but cannot risk a double-dip recession by hiking interest rates
Today the U.K.
reported an increase in industrial production in June but traders ignored this
news saying the increase merely was an offset of the sharp sell-off in
industrial production during the height of the recession. Todayâ€™s weakness was
attributed to another drop in housing values. This report indicates that the
economy is still weak and could trigger a curtailing of spending by the
The sharp rise in U.S. equity markets helped boost
demand for higher yielding currencies. All three commodity-linked markets â€“
Australian Dollar, New Zealand Dollar and Canadian Dollar â€“ experienced substantial
gains on Thursday.
Technically, the Aussie and the Kiwi closed near previous
main tops which put them in positions to change their main trends to up on the
daily chart. Watch for an acceleration to the upside in the AUD USD on a move
through .8858 and a similar move in the NZD USD on a trade through .7159.
The USD CAD is still in an uptrend, but downside momentum is
building which could help trigger a change in trend to down in the short-run.
The bigger picture still indicates that this market is rangebound between .9929
Risk appetite could get strong if U.S. equity markets can overcome
nearby retracement zones. This increased demand for risk should continue to
underpin the Euro and the commodity-linked currencies while putting pressure on
the lower yielding U.S. Dollar and Japanese Yen. Clearly, traders donâ€™t like
the low yields being offered by the Treasuries and are willing to take on more
risk to get a better return at this time.
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.
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
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
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.