User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday April 26, 2005 - 21:04:20 GMT

Share This Story:
| | Email

Forex: Red-Hot Housing Market Fuels Dollar Rally

DailyFX Fundamentals 04-26-05

By Kathy Lien, Chief Strategist of

· Red-Hot Housing Market Fuels Dollar Rally
· Pound Sells Off On Nigeria’s Possible Loan Default
· Yen Gives Back Gains With Deflation In The Air

US Dollar

The red-hot housing market here in the US is providing a strong cause of optimism ahead of next week’s Federal Reserve monetary policy meeting. Although yesterday’s existing home sales report also showed improving conditions, new home sales has been leading the pack. Across the nation, developers have been tearing down existing homes and replacing them with new multiple dwelling complexes. The 12.2% rise to 1.431 million has been driven by low interest rates and steady employment growth. This new trend has made it a banner year for the housing market with today’s report reflecting the strongest annualized new home sales growth on record. In fact, home sales, which tends to take the back seat to the US consumer confidence report actually steered the dollar for most of the day. The market completely shrugged off the 5.3-point drop in consumer confidence. This is the third consecutive month of more pessimism amongst consumers who are certainly frustrated with the sharp rise in gasoline prices during the month of March. Yet, there is reason for the market to focus more on the housing market than confidence. The rise in new home sales confirms that the Fed’s work is far from done while the relationship between confidence and consumer spending has broken down over the past year. The index averaged 96 in 2004, when consumer spending increased by the most in four years.


Although weaker Eurozone economic data provided less of a cause for optimism in the euro, the straw that broke the camel’s back was once again US economic data and reports of another month of healthy growth in US housing market. Despite 175bp of tightening, the latest homes sales report suggests that the Fed’s rate hikes have done little to slow the sector’s impressive growth. Germany in contrast is still struggling with the country’s six leading economic institutes slashing their forecasts for GDP growth. The group predicts that the German economy will expand by 0.7% this year, compared to the 1.5% forecast made last October. With the highest level of unemployment since World-War II, weak domestic demand and oil prices above $50 a barrel, the downgrade in German growth was far from surprising. The ECB has been unable to fuel growth by reducing interest rates because of high inflation. This morning’s report that German import prices rose by the most in four and a half years certainly doesn’t help the ECB’s efforts to boost domestic activity. Tomorrow, the market will turn its focus over to France – we are expecting the PPI and business confidence indicator.

British Pound

The British pound was dealt a triple blow causing it to sell off for the second consecutive day against the greenback. CBI industrial trends orders fell by the largest amount in 2 years with the balance of total orders decreasing from –13 to –24. The group’s chief economic advisor blamed the deterioration in orders on the strength of the pound and high oil prices. Meanwhile, talk of a possible “Argentinian-style” default on its loans by Nigeria is also putting a large dent on the British pound. Britain is Nigeria’s largest creditor, lending them over $33 billion dollars, which accounts for 21% of the country’s total debt. According to the Guardian UK, Britain has been supporting an initiative to “use Nigeria’s windfall from higher oil prices to pay the creditors a fraction of what they are owed.” This would allow the creditors to at least reap 30 cents for every dollar owed instead of nothing. The third dose of pound negative news to hit the wires today was news from Barclays of their planned offer to acquire a 60% stake in a South African company - this offer could total up to $5 billion US dollars.

Japanese Yen

The Japanese yen finally gave back some of its gains with the smell of deflation in the air. Although headline consumer prices increased 0.1%, prices declined 0.2% on an annualized basis. The fall was even sharper on a core level nationwide and in Tokyo specifically. Weak domestic demand has prevented Japanese corporations from raising prices. This will force the Bank of Japan to push out its forecast for the end of deflation to a later date. The labor market is also continuing to deteriorate with employment falling for the second month in a row during the month of March. The jobless rate did improve, but that was only a function of an aging population and declining labor force. The weak labor market has also hurt workers’ household spending and incomes, which fell 1.1% and 3.4% respectively. Taking a step back, even though today’s data painted a pretty dismal picture for the Japanese economy, looking on the bright side, the pace of deterioration is an improvement from February.


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 31 July 2018
AA JP- Bank of Japan
A 06:00 DE- Retail Sales
A 09:00 EZ- flash HICP/GDP
AA 12:30 US- Core PCE Deflator
A 14:00 US- CB Consumer Confidence
Wed 1 Aug 2018
A Final Mfg PMIs
AA 12:15 US- ADP Private Payrolls
A 15:00 US- EIA Crude
AA 18:00 US- Federal Reserve Decision
Thu 2 Aug 2018
AA 11:00 GB- Bank of England Decision
A 13:30 US- Weekly Jobless
Fri 3 Aug 2018
A Final Services PMIs
AA 12:30 US- Employment
A 12:30 US/CA- Trade

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