User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday August 18, 2010 - 02:01:15 GMT
Forex Hound - www.forexhound.com

Share This Story:
| | Email

Friendly Events Fuel Stock Market Rally

Stocks traded sharply higher on Tuesday, driven by both technical and fundamental factors. A combination of friendly events fueled today’s rally which began overnight after European and Asian traders set out to satisfy their appetites for risk by supporting equities. All three major stock indices backed off their highs after reaching key short-term retracement levels.

 

News that Potash Corp. rejected a buyout from BHP Billiton Ltd helped drive agricultural companies higher on the thought that other companies may be on BHP’s radar now that the original deal fell through. A report showing that retail giant Wal-Mart Stores, Inc. beat earnings estimates also helped drive investors into equities. The news regarding Wal-Mart was a sign of strong consumer spending in the wake of a dismal outlook for the economy.

 

At least for the time being, investor appetite for risk seems to be stronger than the desire for safety. This morning’s rally was tipped off on Monday when all three major futures indices posted daily closing price reversal bottoms.

 

Technically, the September E-mini S&P 500 retraced to 1097.00 before finding fresh sellers. The September E-mini NASDAQ reached a 50% level at 1859.00. Finally the Dow had enough upside momentum to reach a 50% price level at 10433. In order to sustain the rally, the indices have to regain this area and attract enough fresh buying to drive them to the .618 retracement level.

 

The September Japanese Yen was pressured on Tuesday because of the strong rally in the U.S. equity markets. The charts suggest the Yen is trying to form a secondary lower top. The failure at the retracement zone at 1.1692 to 1.1719 is a strong sign that the Dollar/Yen may make another attempt later in the week to confirm last week’s weekly closing price reversal top.

 

Although the possibility of an intervention by the Bank of Japan and the Japanese government seems to be remote, a strong rally in the equity markets could trigger renewed interest in the carry trade especially if coupled with better than expected U.S. economic data.

 

The chart pattern says the Japanese Yen is set up for a break. It is now up to investors to show up to sell this rally. Without selling volume, this pattern could fade away like several have over the past few months.

 

The September British Pound is trying to establish support on a minor 50% price level at 1.5635. Breaking this level could trigger an acceleration to 1.5470. Needless to say, the Sterling is at a critical point on the short-term chart. In addition, there is an uptrending Gann angle at 1.5546. This angle has helped support the rally since May. Watch for a technical bounce up if this angle is tested.

 

Fundamentally, the British Pound took a jolt early this morning when it was reported that July inflation was lower than expected. This weakness pressured the Sterling all day. A drop in U.K. inflation is a sign that the economy is slowing. This is a concern because it could indicate the possibility of a double-dip recession, plus it comes at a time when the government is reading to apply new austerity measures and higher taxes.

 

The drop in the inflation rate from 3.2% to 3.1% was the third consecutive month that prices have risen more slowly. The surprise nature of this slow down highlights the difficulty the Bank of England is having in predicting how fast and far it will fall.

 

The BoE would like to see inflation drop to at least 2%. At this time, prices for energy, clothing and furniture are easing, but the cost of food saw its biggest monthly rise in two years. The difference in these two inflation rates partially demonstrates the power of consumer spending. It seems the consumer has a little more control on his spending for energy and other discretionary consumer goods but is not willing to cutback on his spending for necessities such as food.

 

Another concern for the BoE at this time is that wages are not keeping pace with overall inflation. This is another factor that could lead to a slow down in consumer spending. With housing prices already falling, the BoE does not want to deal with a serious drop off in consumer spending.

 

The primary reason for the sell-off in the British Pound today was most likely this growing concern because it means the BoE will have to begin another round of currency-weakening stimulus.

 

Tuesday’s action suggests that the risk trade is back on but that traders are willing to cherry-pick which currencies are strong and which are weak depending on the economic outlook. This scenario may produce volatility in the marketplace especially for traders who get caught up in the broad fundamentals and fail to pay attention to the details. This is one reason why following only the trade-weighted Dollar Index can get you in trouble.

 

December Gold penetrated but could not close over a .618 retracement level at $1228.00, indicating impending weakness. At times it looked like a reversal top was forming, but traders were able to prevent this pattern from taking place with light buying into the close. A failure to regain the Fib level could pressure this market back to the 50% level at $1215.00. This price must hold or the market is likely to retrace 50% of the entire $1159.30 to $1231.10 to $1195.20.

 

Stocks and gold investors are competing for the same Dollar at this time, so a rally in the stock market is likely to be the catalyst which drives the gold market lower over the near-term. If risk is back on, then look for investors to lighten up on their hedge positions in gold.

 

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