User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday November 26, 2010 - 23:52:14 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Euro to fall on contagion fear; US jobs data eyed

1:51pm EST

* Euro/dollar may decline towards $1.25 by year-end

* Euro zone debt crisis, Korean conflict to lift US dollar

* U.S. nonfarm payrolls report also in focus

(Adds comment, updates prices, changes byline)

By Wanfeng Zhou

NEW YORK, Nov 26 (Reuters) - The euro should extend losses against the dollar in the near term after its worst week in over three months on fears Portugal and Spain will be next to need bailouts after Ireland.

Technical charts and option trading also suggest increasing bearishness on the euro. The euro slid to a two-month low at $1.32 on Friday and was down 3.5 percent this week, on pace for its biggest weekly percentage drop since mid-August.

Concerns over a deepening debt crisis in the euro zone and escalating tensions in the Korean peninsula could lift the safe-haven U.S. dollar. The greenback could get an added boost if a key U.S. jobs report next Friday beats expectations.

"The bigger question is will Spain and Portugal remain immune and I would look and say, 'no'," said Greg Salvaggio, vice president of trading at Tempus Consulting in Washington.

"The situation in the euro zone will continue to deteriorate," he said, adding the euro could drop "below $1.30 and perhaps as low as $1.25 by year-end."

The premium investors demand to hold Irish and Spanish government bonds rather than German benchmark Bunds hit new euro lifetime highs on Friday. Portuguese bonds also underperformed after a report said the majority of euro zone states and the European Central Bank were urging Portugal to apply for a bailout. For details, see [ID:nLDE6AP08Y]

European officials said reports Portugal was under pressure to seek a bailout were "absolutely false". Spain on Friday ruled out that it needs help to manage its finances. [ID:nLDE6AP08Y]

Nomura currency strategists Jens Nordvig and Charles St-Arnaud said the outlook on Spain, which accounts for 11.8 percent of euro zone economy, will be a primary driver of the euro in the coming weeks.

"In a scenario where Spanish spreads widen to Portugal's current levels, we see the risk premium on the euro increasing from around 10 percent to above 20 percent, and this could see the euro trade all the way to 1.23 against the U.S. dollar," they wrote to clients. "The big question is whether this is the central case."


On Friday, the euro last traded at $1.3239 EUR=EBS, down 0.9 percent on the day, after falling as low as $1.3200 on trading platform EBS. The euro hit a four-year low of $1.1876 in June in the wake of the Greek debt crisis.

Bearish momentum in the euro will likely continue after the currency breached several key support levels this week, including its August high at $1.3334 and the 61.8 percent retracement of its August to November rise at $1.3232.

Next support comes in around the 200-day moving average at $1.3131, followed by $1.3080, the 50 percent retracement of the euro's June to November rally.

Ashraf Laidi, chief market strategist at CMC Markets in London, said a close below the important $1.3250/60 trendline support could see the euro/dollar slide towards $1.27.

In the options market, risk reversals have showed increasingly bearish sentiment on the euro, while analysts at Credit Suisse noted "significant buying of bearish euro structures against the dollar, yen and the Swiss franc."

On Friday, one-month euro/dollar risk reversals traded at -2.3 EUR1MRR=GFI, with a bias toward euro puts, suggesting more investors are betting the euro will fall than rise. That was down from -1.6 on Monday. In mid-October, euro/dollar risk reversals traded near neutral levels at -0.55.

Investors will also closely watch developments in the Korean peninsula, which will likely benefit the dollar as safe-haven demand rises.

Analysts said the dollar should also benefit if U.S. housing and jobs data next week comes in stronger than expected, which would reinforce expectations the U.S. economy is outperforming that of Europe. (Editing by Andrew Hay)

© 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