User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Thursday November 4, 2010 - 09:52:22 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Dollar jettisoned after Fed, risk appetite stoked

5:35am EDT

* Dollar index at 11-month low after Fed easing measures

* Riskier assets in demand, European stocks up 1.3 pct

* Euro hits 9-mth high but euro zone worries to slow gains

(Changes dateline, adds quote, detail, previous TOKYO)

By Neal Armstrong

LONDON, Nov 4 (Reuters) - The dollar fell sharply on Thursday, hitting a 28-year low versus the Australian dollar, as a Federal Reserve decision to buy more U.S. government debt triggered demand for risk and undermined the U.S. currency.

The market concluded that the Fed's decision to buy $600 billion more in Treasuries by the middle of next year was in line with expectations, spelling more dollar supply that would be likely to weigh it down further.[ID:nFEDAHEAD]

The Fed's commitment to open-ended purchases of Treasuries, implying low funding costs, brings into focus an expected increased use of the dollar in carry trades, in which the U.S. currency is used to fund purchases in commodities, emerging markets and higher-yielding currencies.

As a result, the dollar slid to a 28-year low against the higher-yielding Australian dollar and plumbed a fresh 10-month trough against the euro.

"The risk now into year-end is that the dollar will go lower, but I don't think the euro can go too much further due to problems that still exist in the euro zone," said Tom Levinson, currency strategist at ING.

Levinson said the $1.43 area could act as a cap for the euro and highlighted this weekend's Greek local elections as a potential banana skin for the single currency.

The euro EUR= traded at $1.4237, up around 0.7 percent on the day, having touched a nine-month high at $1.4243. Traders reported an option barrier at $1.4250.

The dollar index =USD .DXY, a gauge of its performance against a basket of currencies, fell more than 0.7 percent to an 11-month low of 75.908, taking out trendline support from its March 2008 lows.


Link to PDF on Fed decision:

For more stories on Fed policy: [FED/AHEAD]

For FOMC statement: [FED/FOMC]

For NY Fed statement: [ID:nN03121393]

Graphic on assets and QE


Asian share markets rose on Thursday, with European markets following suit to trade up around 1.3 percent .FTEU3. U.S. stocks had closed with slight gains on Wednesday .SPX.

The Australian dollar, whose central bank raised rates by 25 basis points to 4.75 percent this week, hit a post-float high above $1.0099 AUD=D4, with the New Zealand dollar rallying to its highest since mid-2008 at $0.7896 NZD=D4.

The dollar fell 0.2 percent against the yen, easing to 80.90 yen per dollar JPY= and still close to its 1995 postwar record low of 79.75 yen. A major Asian sovereign account was a seller in European trade.

For dollar/yen, the key issue would be to see how far the Fed's bond purchases pushed down U.S. yields.

"If they push down U.S. yields in the belly of the curve then it could create downward pressure on the dollar/yen," said Masafumi Yamamoto, chief FX strategist Japan at Barclays.

Yields on medium-term Treasuries fell after the Fed decision on the view they would benefit most from the bond purchase programme, while 30-year yields jumped in a sharp curve steepening.

Still, traders remain on alert for possible yen-selling intervention by Japanese authorities to weaken the yen.

The Bank of Japan meets on Nov. 4-5, having brought forward its policy review from mid-November to speed up the launch of a 5 trillion yen ($62 billion) asset buying scheme.

Analysts had said the timing of the meeting gave the BOJ the chance to act quickly if the Fed surprised the market and triggered a new wave of dollar selling.

The European Central Bank, meeting on Thursday, was not expected to show any signs of veering off its crisis exit path, but there was an outside chance of more quantitative easing by the Bank of England. [ID:nLDE6A00KZ] [ID:nLDE6A00ZO]

The Canadian dollar briefly weakened against the dollar after Canada blocked BHP's (BHP.AX: Quote, Profile, Research, Stock Buzz) bid for Potash Corp (POT.TO: Quote, Profile, Research, Stock Buzz) but it quickly erased losses to trade at C$1.0034 per dollar CAD=D4, its highest since October 15. [ID:nN03272751]. (Additional reporting by Masayuki Kitano and Charlotte Cooper in Tokyo, editing by Nigel Stephenson)

© 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

Tue 17 July 2018
AA 08:30 GB- Employment
A 13:15 US- Industrial Production
AA 14:00 US-Powell Testimony
Wed 18 July 2018
AA 08:30 GB- CPI
A 12:30 US- Housing Starts/Permits
AA 14:00 US-Powell Testimony
Thu 19 July 2018
AA 1:30 AU- Employment
AA 08:30 GB- Retail Sales
A 14:30 US- EIA Crude
A 12:30 US- Weekly Jobless
Fri 20 Jun 2018
A 12:30 CA- CPI/Retail Sales

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