User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday June 29, 2005 - 21:29:50 GMT

Share This Story:
| | Email

Forex: No Curveballs Expected From The Fed

DailyFX Fundamentals 06-29-05

By Kathy Lien, Chief Strategist of

· No Curveballs Expected From The Fed
· Euro Rallies On Leak of German Unemployment
· Pound Collapses On Weak Data

US Dollar

Gear up for a big day tomorrow! We are expecting personal spending, personal income, jobless claims, and Chicago PMI. The main event will of course be the Federal Reserve’s rate decision at 2:15 EDT. The two-day meeting that began today will give the Fed ample time to deliberate on if and how they should tweak the accompanying FOMC statement. They will probably spend no more time than it takes for each member to raise their hand in support of quarter point hike to agree that more tightening is still needed. Even though most data has been mixed, long-term yields remain low, which means that for the most part, the rate hikes that we have seen thus far has had a limited impact on the economy. Yet with oil prices skyrocketing, it remains questionable as to whether the economy will be slowing down itself. If oil prices do continue to move higher, don’t expect second quarter growth to be a repeat of the strong first quarter growth numbers that were reported this morning. GDP for Q1 was revised upward from 3.5% to a whopping 3.8%. The report however is not completely without flaws as it indicates that pricing pressures have eased. At this point, the balance of economic data makes the continuation of a measured pace of tightening well justified. In all likelihood, the Fed meeting will be a non-event with the Committee raising rates as expected and keeping most of the statement intact. The Chicago PMI will also be an interesting indicator to watch following the recent volatility in the Empire State and Philly Fed surveys. If the number comes in very poorly, the national ISM index faces the potential of slipping into contractionary territory below the 50 expansion / contraction line.

The Euro bolted higher today following the leak of German unemployment numbers. Interestingly enough, German unemployment is one of those rare releases that is almost always leaked and each time with pretty good accuracy. The market’s forecast was for unemployment to remain unchanged, but according to an “unidentified source” quoted by Reuters, unemployment actually fell 25,000 in May. This brings the unemployment rate down to 11.3% from 11.6%. Although Reuters added that the decline was not due to an economic revival, this release follows a series of other reports highlighting the gradual recovery in the Eurozone’s largest economy. The fall in the euro is certainly having positive effects on the economy. Meanwhile, there are a number of articles reporting on the EU Commission’s decision to give Italy 2 years to correct their deficit. If Italy fails to comply, there could sanctions, but at this point that seems unlikely because any penalty would have to be approved by all EU nations. Right now, Italy is only one of ten countries with excessive deficits. Both Italy and France are also in breach of the Stability and Growth Pact’s rules.

British Pound
Pound bears had plenty to feed on with rather worrisome economic data plaguing the session today. The biggest headliner today was the sharp decline in the CBI industrial trends survey. The weakest number in 22 years has given pound traders sufficient reason to believe that the Bank of England will become increasingly dovish. However, the Monetary Policy Committee’s job will continue to be difficult with money supply and consumer credit increasing. This morning’s release indicates that money supply in fact vaulted higher by 11.6 percent, the strongest growth in over five years. Adding to the mix were increases in the net consumer credit figure for the month of May. Rising against previous period figures, consumer lending is an increasing concern as reflected in previous central bank’s minutes. Ultimately, earlier expectations of forthcoming interest rate cuts may be bucked if these factors persist.

Japanese Yen

The dollar continued to rise higher against the Japanese Yen despite today’s retracement in oil prices. Dollar / Yen as the new emerging carry trade of 2005 is really fueling the currency pair’s rally. With increasing interest rates in the US and an unchanged zero interest rate monetary policy in Japan, it has brain surgery to understand why USDJPY has become such an attractive carry trade. In the past, the rise was tempered by fears of Chinese revaluation. However the Chinese continues to stand staunchly behind their refusal to bow to international pressure, giving some USDJPY traders the guts to fade revaluation. Fundamentals continue to improve gradually in Japan. A perfect example of better times to come is the recently released news of completion of the Mitsubishi Tokyo Financial Group Inc. and UFJ Holdings Inc. merger, capping a period of 15 years in restructuring the broken Japanese banking infrastructure. Approved this morning by shareholder vote, the merger is viewed, in addition to previous transactions and the privatization of Resona Bank Ltd in 2003, as a necessary evil. Not only are nonperforming loans being disposed of through increased capital strength, these nascent relationships assist in creating a global competitor. After the merger, Mitsubishi Tokyo Financial can now hoist the title of the world’s largest bank, outstripping competitor Mizuho Financial and U.S. based Citigroup by assets. As a result, yen strength may soon enough be on the horizon if positive optimism can be sustained and similar suggestions of development can be created.


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

Mon 9 July 2018
AA 12:00 EZ- Draghi EU Parliament Testimony
Tue 10 July 2018
AA 08:30 GB- Ind/Prod Output, Trade
AA 09:00 DE- ZEW Survey
Wed 11 July 2018
A 12:30 US- PPI
A 14:00 CA- Bank Of Canada Decision
A 14:30 US- EIA Crude
Thu 12 July 2018
AA 12:30 US- CPI
Fri 13 July 2018
A 14:00 US- Prelim University of Michigan
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