User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday May 17, 2005 - 21:40:05 GMT

Share This Story:
| | Email

Forex: British Pound Suffers From Longest Losing Streak In Over 4 Years

DailyFX Fundamentals 05-17-05

By Kathy Lien, Chief Strategist of

· British Pound Suffers From Longest Losing Streak In Over 4 Years
· Mixed Dollar Keeps Dollar Steady
· Pressure Back On For China to Revalue

US Dollar

With today’s basket of mixed US economic releases, the dollar remained relatively unchanged against the euro. The two major reports released today were the index of producer prices and industrial production. These days, the producer price index is like an appetizer to the main course, the consumer price index. Even though producer prices advanced by a more than expected 0.6% and core prices, which excludes the volatile food and energy components also rose by a more than expected 0.3%, inflation watchers were unfazed. They are sitting tight and waiting for tomorrow’s more important CPI report to see if producers have had any success at passing these higher costs over to the end buyer. Of course the back seat significance of the PPI report is not the only reason why the dollar has remained relatively steady today. The surprising contraction in industrial production in the month of April also offset any bullishness that would have come out of this morning’s inflation report. Production fell by the biggest amount in 8 months as a result of warmer weather slowing utility output and reduced automobile reduction by companies such as General Motors and Ford who suffered cutbacks in demand for their cars this year. Today’s housing starts data suggested that the US’ real estate market is still fundamentally strong. However, even though housing starts rose 11% in April, the index has been pretty volatile lately with Match data experiencing the biggest drop in 14 years.


The European calendar today was devoid of any important economic releases. The only piece of news related to the health of the European economy was the German central bank’s warning that first quarter GDP reported last week may have been overstated due to errors in counting the days between the fourth quarter of 2004 and the first quarter of 2005. The first estimate of GDP was 1.0%, which was higher than the market’s 0.5% estimate and a significant rebound from the -0.1% contraction experienced in the fourth quarter. Now that we have received due warning that the first release was overstated, the second release of Q1 GDP next week should be comparatively lower. The central bank said that growth has been hampered by weak domestic demand and limited increases in capital investment.

British Pound

The British pound has now sold off for the eighth consecutive trading session, which is the longest period of continued weakness that we have seen in the currency pair since November 2000. UK economic data released over the past 24 hours gave pound bulls an even better reason to hold onto their shorts. The RICS house price balance fell to –40 from –39, which is yet another piece of evidence that suggests that the housing market is turning sour. Consumer price growth remained steady in the month of April on both a quarterly and annualized basis. Although the figures do not seem to present the market with much upside inflation risk, Bank of England’s Governor Mervyn King warned that the bank is determined take preventive measures to stop inflation expectations from rising. Inflation hasn’t exceeded the bank’s target since 1997.

Japanese Yen

The dollar continue to maintain its hold over the Japanese Yen even in the face of extremely strong Japanese first quarter growth figures. GDP accelerated 1.3% on a quarterly basis and a whopping 5.4% on an annualized basis. The problem with the release was that the blockbuster number was far from blockbuster. Most of the growth was concentrated in January while weak demand for exports was also a cause for concern. Industrial production for the month of March was also confirmed to have contracted for the second consecutive month. Even though the contraction was less negative than initially anticipated, it is still the second monthly contraction in a row. China was also back on the radar today with the US ramping up pressure for revaluation once again. Despite the barrage of attacks on China’s currency policy by US manufacturers and members of the US government throughout the past year, the US Treasury stopped short of branding China as a currency manipulator in their semi-annual report to Congress on exchange rates and trade. However what the Treasury did do is warn China that unless they institute a “substantial alteration” in policy, they would meet the “technical requirements for designation” as a currency manipulator at some point. If they are branded a currency manipulator, it would make it much easier for the Senate to get their proposal for 27.5% tariffs on Chinese imports passed. The US has already hinted to the markets the steps that they want to see China take. Treasury Secretary Snow said that they are not calling for “an immediate full float,” which China is not prepared for. Instead, they want China to take an intermediate step that would allow for a “smooth transition – when appropriate – to a full float.” This intermediate step could very well be what most analysts predict will be China’s first move, which is to widen the band of their trading range by 3-5%. This would only lead to a 1.5-2.5% appreciation of the Renminbi and would not require the Chinese to develop any new infrastructure. Revaluation is something that the US administration is really pushing for, but many believe that China will not bow to international pressure.


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