User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday October 20, 2010 - 10:37:05 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS - Dollar slips as China rate hike impact wanes

6:17am EDT

* Dollar takes breather after surging on China rate rise

* Euro up, Aussie rebounds 1 percent

* Sterling drops after BoE minutes

(Updates prices, adds quote, sterling reaction)

By Anirban Nag

LONDON, Oct 20 (Reuters) - The dollar fell against a basket of currencies for the first time in four sessions on Wednesday, as appetite for higher-yielding currencies stabilised after being jolted by a surprise interest rate hike by China.

The dollar index eased 0.6 percent to 77.737 .DXY =USD after climbing more than 1.6 percent the previous day and well above an 10-month low of 76.16, struck last week.

Analysts said the market's reaction to the previous day's move by China was overblown, and with the Federal Reserve set to ease monetary policy further next month any dollar rebound would be short-lived.

"I think the move itself indicated how excessive positioning in the market was, but any correction in the dollar will be short and shallow," said Derek Halpenny, European Head of Global Currency Research at BTM-UFJ. "The main driver will be QE from the Fed and that should weigh on the dollar."

Investors had increased their bets against the dollar in recent weeks and had gone long on currencies like the euro and the Australian dollar on heightened expectations the Federal Reserve will unveil a second round of quantitative easing.

Those stretched positions had increased chances of a short-covering bounce in the dollar.

"The dollar's move down through September went too far and was overdone. This bounce we saw is part of a healthy correction," said Jane Foley, senior currency strategist at Rabobank.

"The dollar's weakening trend remains intact, as China's rate hike will not be slowing down its economy significantly and this is just a temporary pause in 'risk-on' trades."

The U.S. currency is often seen as a safe-haven currency and gains when appetite for riskier assets or growth-linked currencies suffers.


Several Federal Reserve officials indicated on Tuesday that the central bank will soon offer further monetary stimulus, with one saying $100 billion a month in bond buying may be appropriate. [ID:nN19258951].

In the UK too, minutes from the Bank of England's last monetary policy committee meeting showed a three-way split, with one member voting for QE. [ID:nBOE004351]

That saw sterling fall to the day's low against the euro and give up some of its gains against the dollar. The euro was up 0.5 percent at 87.86 pence EURGBP=D4 while the pound was flat at $1.5727, falling from around $1.5740 before the minutes were released.

Sterling now awaits a spending cuts programme from the coalition government which many analysts say could hurt growth and prompt the BOE to keep monetary policy easy.

The euro was up 0.1 for the day at $1.3826 EUR=, steadying from its 1.6 percent slide the previous day. It had fallen sharply as investors trimmed some of their risk-taking positions after China raised interest rates by 25 basis points, its first such action in nearly three years.

The move spurred concerns that it could mark the start of a more aggressive phase of monetary tightening, dampening Chinese and global growth and denting China's voracious demand for commodities. [ID:nSGE69I0HU].

The euro also gained against the yen EURJPY=R, drawing some support from higher Chinese shares .SSEC.

But the dollar dipped 0.5 percent to 81.19 JPY=, not far from its 15-year low of 80.88 yen.

The higher-yielding Australian dollar rose 1 percent to a session high of $0.9790 AUD=D4 regaining some ground after sliding more than 2 percent on Tuesday. (Editing by Catherine Evans)

© Thomson Reuters 2010. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.

Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.




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."

Actionable trading levels delivered to YOUR charts in real-time.

Register To Test Your Amazing Trader

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

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 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.

Contact us

Start trading with forex broker Markets Cube

Max McKegg's Daily Forex Trading Forecasts

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.

Request a TRIAL of Max's Forex Service.


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

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 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 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.



By using this website, you are agreeing to our Privacy Policy and Terms of Use, and Cookie Policy

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105