Worries about Economy Losing Steam Drives U.S. Dollar Lower
The U.S. Dollar is under pressure against most majors as
investor concern that the U.S.
economyâ€™s recovery is losing steam drove traders into higher yielding assets.
The overnight weakness in the Dollar was triggered by a better than expected
economic report in Australia
and a strong surge in Asian equities.
The Dollar has been under pressure lately because of a
string of weak economic data while the Euro Zone economy has been showing signs
of strength, driving investors into riskier assets. Another concern at this
time is how long the weaker U.S.
economy will continue to drive investors into the higher yielding currencies.
At some point, global investors will turn their focus once again to the Dollar
because of risk aversion worries.
The AUD USD rose to its strongest level in three months on
signs that Asian economic growth continues to remain strong despite predictions
of a slow down in China.
Australian traders turned bullish after the manufacturing index in Australia rose
1.5 points to 54.4. Speculative traders are also looking for tomorrowâ€™s
Australian retail sales and building approvals to show advances for June.
On August 3, the Reserve Bank of Australia is expected to leave
interest rates unchanged for the third straight month.Traders will be watching the policy statement
for any signs that the RBA will resume its tightening campaign later in the
year. The central bank may have to take action against a possible spike in
inflation due to projected strength in the economy for late 2010 and early
Technically the Aussie continues in an uptrend. The drive
through the last swing top at .9068 was reaffirmed overnight. A new higher
swing bottom was formed at .8904. Continue to look for the trend to continue as
long as there are higher-tops and higher-bottoms.
Purchasing Managersâ€™ Index was down in July versus June, the reading remained
above 50 showing expansion. New Zealand Dollar traders read this a sign that
demand for goods and services will remain strong. The NZD followed through to
the upside after Fridayâ€™s minor reversal bottom. Strong upside momentum
indicates the market may have enough juice to challenge the last main top at
.7395. The main trend remains up with a strong chance a new higher swing bottom
will form at .7190.
The British Pound is the strongest gainer overnight. Traders
are buying the Sterling
ahead of this weekâ€™s Bank of England interest rate decision. Most investors
expect the central bank to leave interest rates unchanged but the key focus
will be on the BoEâ€™s outlook for inflation. The new inflation outlook will be
the central banks first since the government implemented financial austerity
measures. The BoE is expected to give its assessment on the effects of the
financial austerity measures on monetary policy and economic growth going
Technically, now that the British Pound has cleared a key
50% retracement level, upside momentum is expected to drive the market to the
.618 retracement level at 1.5967 before encountering new resistance. Continue
to look for higher markets as long as 1.5635 holds as support. The strong rise
in the Sterling
has this market in a position to post a daily closing price reversal top.
Bearish traders should watch for this formation to form on either an intra-day
or daily basis.
Demand for higher risk assets is driving the USD JPY higher
after this currency pair reached a new low for the year on Friday. The strong
rise in the equities has reignited interest in the carry-trade, fueling a
sell-off in the Japanese Yen.
This week the Australian Central Bank meets on August 3,
followed by the European Central Bank and the Bank of England on August 5. All
three central banks are expected to leave interest rates unchanged. Following
the release of their respective policy statements, traders will turn their
focus toward the release of the July U.S. Non-Farm Payrolls Report.
This report will be important because Dollar sellers will
have to decide whether to keep the pressure on the Greenback because of a weak
economy or begin to cover their shorts because of risk aversion.
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.
Tue 19 June 2018 A 12:30 US- House Permits/Starts Wed 20 June 2018 A 14:00 US- Existing Homes Sales A 14:30 US- EIA Crude Thu 21 June 2018 AA 11:00 GB- Bank of England Decision A 12:30 US- Weekly Jobless Fri 22 June 2018 AFlash PMIs
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.