User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday August 26, 2005 - 20:47:15 GMT

Share This Story:
| | Email

Dollar Recoups Gains but Market Begins to Contemplate Greenspan Departure

DailyFX Fundamentals 08-26-05

By Kathy Lien, Chief Strategist of and
[email protected]

· Dollar Recoups Gains but Market Begins to Contemplate Greenspan Departure
· Good UK Data Pares Back Market Expectations for Further Rate Cut
· Yen Gives Back Gains as Rumors of More Chinese Revaluation is Denied by PBoC

US Dollar - After sliding against the Euro in the early US trading session, the dollar managed to recuperate most of its losses as oil prices retraced on easing concerns for the potential damage of Hurricane Katrina. Even though the dollar rebounded, we doubt that the worse is over - September tends to be one of the most active Hurricane months. Additionally, we did not receive that much good news today with consumer confidence as measured by the University of Michigan sentiment survey took a nosedive to 89.1 verus 92.7 the previous month. Greenspan also had some warnings for us in his speech this morning. He said that the Fed was paying more attention to asset prices and that increases in asset prices can “readily disappear” if investors all of sudden became more cautious or risk averse. With the Chairman himself who has up until now remained relatively Pollyanish in the face of a potential burst in the housing market bubble chiming in about the dangers of a contraction in the housing market, it would be niave not to consider the potential risk that a burst or even just a slowdown would have on the US economy and the US dollar. Of course we hope for the sake of the many people who may be invested in US real estate that this does not happen, but it would be unwise not to prepare for it. Today’s speech by Greenspan has begun the season of the “hunt for Greenspan’s replacement.” Everyone is beginning to talk about Greenspan’s legacy. In today’s Financial Times, there is an article titled “Market Trauma Warning When Greenspan Goes.” The article talks about how Greenspan’s personalization of monetary policy had pretty much turned him into a “one-man show.” This suggests that once he’s out of the picture, it remains to be seen whether the next Fed Chairman and his team can hold their own in the markets. Greenspan is scheduled to leave office in the beginning of next year. We wrote an extensive article on Greenspan and his potential replacements back in June that can be found on Meanwhile we have a very busy week ahead of us. Just from the US alone, we are expecting non-farm payrolls, consumer confidence, Fed minutes, GDP, Chicago PMI and ISM.

Euro – With not much Eurozone economic data released this morning, the euro traded mostly off of US data and commodity prices. The one piece of news that was released was money supply growth, which came in higher than expected and in fact rose by the strongest rate since October 2003. Higher money supply is inflationary, so the report gives the ECB a better reason to keep rates unchanged. There are some economists who are calling for a possible rate hike due to growing inflationary pressures, but we doubt that is likely since growth is improving, but on a relative basis, still benign. Like the US, there are a lot of data expected out of the Eurozone next week, namely GDP, labor market and consumer spending reports. Therefore even though next week is Labor Day weekend in the US, there may still be a good deal of interesting price action ahead.

British Pound - Rocketing higher earlier on, the pound strength was sparked by further interest rate speculation today. Even with relatively positive economic data released during the session, it seems that the big focus of the market has now shifted to further interest rate cut decisions by Bank of England members and not basic economic fundamentals. As a result, with both gross domestic product and export figures vastly improved, market participants are now starting to believe in the beginning of the end to interest rate cut considerations. Falling in line with consensus estimates, overall output figures for the U.K. rose 0.5 percent in the monthly comparison while additionally rising slightly higher than previous estimations in the annualized figure. Garnering the most attention, however, were the export figures. In the second quarter, exports vaulted higher by 5.6 percent, dominating consensus 1.9 percent expectations. With global demand seemingly increasing, in light of rising imports by 3 percent, improvement in the recently lackluster economy looks to be on the horizon. As a result, coupled with rising inflationary concerns, policy makers may grow reluctant in considering any further rate reductions as monetary policy still remains hawkishly biased. However, with consumer consumption and housing valuations still in a lull, an otherwise logical decision may have become only that much harder.

Japanese Yen - The Japanese yen rallied earlier on in the session before giving back gains ahead of the weekend. Traders squared positions in the currency pair as two major releases and further Yuan speculation dominated morning market activity. Tokyo and National consumer prices indexes were released much to the chagrin of market participants, expecting the economy to be exiting deflationary conditions. Falling in the month of August, Tokyo consumer prices actually dipped 0.3 percent while the subsequent national report indicated prices rising in line with expectations. As a result, overall sentiment remains that the world’s second largest economy remains in deflation, even as productivity and growth seem to be improving. This may be somewhat surprising as oil prices have risen 54 percent from a year ago, adding to producers’ overall costs. Nonetheless, the Japanese economy remains resilient in the face of higher commodities with officials calling for inflation to return some time in 2006. Additionally heard throughout the day were rumors of further revaluation efforts by Chinese policy makers. Expected to increase by an additional 1 percent by the end of business today, the move would have been the second occurrence in two months. However, officials from the People’s Bank of China quickly quelled the rumors, maintaining their stance on future revaluation and their conservative methodology.


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