User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday June 15, 2005 - 21:28:33 GMT
FXCM - www.dailyfx.com

Share This Story:
| | Email

Forex: EU Summit - Donít Expect Any Fast Fixes

DailyFX Fundamentals 06-15-05

By Kathy Lien, Chief Strategist of www.dailyfx.com

∑ EU Summit - Donít Expect Any Fast Fixes
∑ Dollar Finally Pays Attention To Data And Reverses Gains
∑ Pound Rallies Despite Disappointing Employment Data

US Dollar- After a long and exhaustive battle, dollar bulls may have finally stopped obsessing with the 1.20 level in the EURUSD and are paying more attention to the significance of the barrage of US economic data that was released this morning. In the Instant Insight that we published following the morning data releases, we wrote about how appalled we were at the dollarís rally in the face of weak data. Since then, the dollar has given back all of its gains and is trading back at the pre-data lows against the euro. Yet, it may be too soon to assume that those who have their spears aimed at 1.20 have completely disappeared. There are still 4-5 yards (or billions) of stops rumored to be between 1.20 and 1.1950, which may be too attractive to ignore. However, there is still a laundry list of problems that the dollar faces. Today alone, we saw that for the second month in a row, there were insufficient foreign inflows to fund the trade deficit (TIC data came in at $47.4B). This time around, even though China and Japan increased their purchases of US treasuries (probably related to auction demand), Caribbean hedge funds, which were big buyers of dollars in March became the largest sellers in April. There is no denying that the last 2 months of foreign demand was the weakest in 6 months. Excluding the dip in August of 2004, the purchases were the weakest since Nov 2003. With lackluster job growth, weak retail sales, and a struggling manufacturing sector, the only support for the dollar is the Fed's rate hikes. Yet the latest inflation data on both a consumer and producer price level have been very tame, with headline inflation actually falling, giving the Fed an even better reason to stop raising rates at a measured pace amidst all of the recently negative releases. The industrial production and the Empire state survey did move higher, which shows that the manufacturing sector may be recovering and the Beige Book did have a marginally optimistic tone. However, with both sets of data contracting the previous month, the mild improvements are hardly anything to write home about, especially with oil prices closing above $55 a barrel. So once dollar bulls have their way, we could see a continuation of the rebound in the EURUSD as the market stops turning a blind eye to fundamentals.

Euro - Judging from the recent rhetoric of ECB officials, there seems to be quite a bit of dissent at the central bank. In an op-ed article released this morning, ECB President Trichet clarified the recent rate cut debate by saying that the central bank remains "vigilant and realistic" and are not "preparing the market for any rate decrease." Issing on the other hand reiterated today that the central bank no longer maintains a tightening bias and is neutral at best. The EUís two-day Summit begins tomorrow. After all of fan-fare with the referendums, there are hopes that some sort of positive news will come out of the Summit. It is too hasty to assume that conclusions and a consensus will be reached at the Summit, especially amidst all of the recent disagreements between UK Prime Minister Blair and French President Chirac over the UKís rebates. EU Commission chief Jose Manuel Barroso warned that the bloc could face long-term 'paralysis' if leaders fail to reach agreement on the budget and constitution. This is probably a bit dramatic. Most likely EU leaders will agree to go back to the drawing board and come up with some agreeable solutions to propose to voters. They will do this by extending the 2-year ratification period.

British Pound - Vaulting through the 1.8100 figure, the British pound skyrocketed higher on strength garnered from relatively suggestive economic data figures. Key data for the session included, average earnings and manufacturing unit wage cost reports with the unemployment rate falling well in line with expectations. Remaining at a near three decade low of 2.7 percent, the May unemployment report included a disappointing monthly increase of 13,200 in unemployment claims, far exceeding the 5,000 estimate and adding to a total 855,300. With most reductions stemming from manufacturing, the print is the fourth consecutive rise in claimants, the longest stretch in 12 years, and looks to be attributed to fears of a declining economic environment. Separately, data on manufacturing unit wage cost and average earnings hinted at potential inflationary pressures. Bouncing 1.3 percent compared with 0.3 percent from the month of March, the unit wage cost rose for the third consecutive period. Ultimately, this may leave producers to pass increasing costs on to the consumer in the form of higher prices or inflation, potentially rekindling repurchase rate increase speculation. As a result, traders will likely be looking ahead to tomorrowís retail sales number in gauging consumersí resiliency towards higher prices and its effects on any future rate decisions.

Japanese Yen - The excitement from todayís US TIC data sent the yen flying up to 109.71 against the dollar right before the pair came crashing back down to 109.20. Aside from that, movements were fairly restricted as Japan experienced a day devoid of economic numbers. The only news out was a monthly economic report from the Cabinet Office. The changes from Mayís report show recognition of further distribution of the recent recovery in labor markets as increases are also seen in wages. More importantly, the pickup in private spending has solidified as consumers are being given more money to spend. Of course, household consumption will have to advance for quite a bit longer before the Bank of Japan will be ready to increase interest rates. The economy needs this time to fully distance itself from the deflation that resurfaced in the first quarter. In other news from the region, industrial output in China rose by a whopping 16.6% triggering notions of an upwardly revised growth figure for the year. Having China as its largest trade partner, Japan will be able to reap some of the benefits of this growth as growing Chinese firms will continue to increase their orders of goods, especially from the technology sector in Japan.

 

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."



Elevate Your Trading With The Amazing Trader!

The Amazing Trader includes:
  • Actionable trading levels delivered to YOUR charts in real-time.
  • Live trading strategy sessions.
  • Market Updates with Trading Tools.

Register To Test Your Amazing Trader


Trading Ideas for 23 October 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

Tue 24 Oct
All Day flash PMIs
Wed 25 Oct
01:30 AU- CPI
08:00 DE- IFO Survey
08:30 GB- GDP
14:00 CA- BOC Decision
14:30 US- EIA Crude
Thu 26 Oct
11:45 EZ- ECB Decision
12:30 US- Weekly Jobless
14:00 US- Pending Homes Sales
Fri 27 Oct
12:30 US- GDP
14:00 US- final Univ of Michigan

Forex Trading Outlook


Potential Trading Opportunities


  • POTENTIAL PRICE RISK: Medium Tue-- All Day Global flash PMIs. First good look at October economic performances.



  • POTENTIAL PRICE RISK: HIGH Wed-- 01:30 GMT AU- CPI. Top Inflation indicator.

  • POTENTIAL PRICE RISK: HIGH Wed-- 08:00 GMT DE- IFO Survey. Top German indicator.


  • POTENTIAL PRICE RISK: HIGH Wed-- 14:00 GMT CA- BOC Decision. No Policy Change Expected.


  • POTENTIAL PRICE RISK: Medium Wed-- 14:30 GMT US- EIA Crude. Top Weekly WTI Statistic.



John M. Bland, MBA
co-founding Partner, Global-View.com

EXCLUSIVE: Global-View Daily Trading Chart Points Updated

EXCLUSIVE: Global-View Free Forex Database updated




TRADER ADVOCACY ARTICLES

Trader's Advocate Articles..

pic

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 Global-View.com.

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

Global-View.com 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 Global-View.com. 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.

 

WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.

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