User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday June 18, 2004 - 21:16:19 GMT -

Share This Story:
| | Email

Dollar Weakens As US Current Account Deficit Widens To Record

DailyFX Fundamentals 06-18-04

· US Current Account Deficit Widens To Record
· UK Mortgage Lending Slows
· Eurozone Trade Surplus Narrows


The Euro has ended the week higher amidst growing evidence of the need for a rate hike by the European Central Bank. The ECB, the world’s youngest central bank is very concerned with establishing credibility. The most recent tightening by the Swiss National Bank, the Bank of England and the upcoming expected tightening by the Federal Reserve will leave the ECB as the only major central bank aside from the Bank of Canada and the Bank of Japan have yet to raise rates since the global economy began to recover. With global inflation on the rise, the ECB may feel increasing pressure to prove themselves despite the possibility of risking their recovery. Annualized inflation for the month of May has increased a full half a percent, which was the largest gain in two years. Eurozone industrial production on the other increased a lackluster 0.2% in the month of April. Therefore this makes the ECB’s position particularly difficult. In the week ahead, we have a number of ECB officials speaking – look for hints on monetary policy and inflation. We are also expecting the ZEW economic sentiment survey and the IFO business climate survey. The German ZEW survey of analyst sentiment has been declining since December, while the IFO business climate survey has remained relatively stable.


The US current account deficit widened to a record $144.9 billion in the first quarter of 2004. The deficit is now 5.1% of GDP, up from 4.6% in the fourth quarter. The sizeable rise is quite alarming and stems from a sharp increase in imports from companies trying to meet rising domestic demand. Although the dollar has sold off on the release, losses were limited as the market’s core focus for the moment is on interest rates and not the deficit. Once the Fed finally ends speculation and begins raising rates, the deficit may have the chance at regaining the spotlight. Therefore if the deficit widens again in Q2, we may see a more notable currency reaction, especially since there is little evidence that foreign investors are willing to fund the deficit. The deficit is still covered primarily by official intervention. In the week ahead, as we have previously stressed, we expect more range trading leading into the June 30 FOMC meeting. The only notable releases from the US are durable goods on Thursday and the final first quarter GDP report on Friday. Meanwhile, it is a busy week for Switzerland. We are expecting industrial production, money supply, the trade balance and import prices.


The British Banker’s Association reported today that mortgage lending slowed during the month of May. Since this follows a record increase in the month of April, it is far too early to conclude from this data that the housing market may be beginning to slow. After 4 hikes since last November, the Bank of England is struggling to ensure that the market begins reacting to their tightening campaign. In the week ahead, the key release expected from the UK are the minutes from the June 9/10 MPC meeting at which the Bank of England raised rates by 25bp. The vote is likely to have been a close call – look for wording on further tightening biases. Currently the market does not expect the Bank of England to raise rates again on July 8th. Although the pound remains bid, if there is no further evidence of increased aggressiveness by the BoE, we could see the pound top out around 1.85.

According to the minutes from the Bank of Japan’s April 28 monetary policy meeting, the board members discussed the possibility of adopting a 1% CPI inflation target. However, with the economy still flirting with deflation, adopting an inflation target is not an immediate concern. In the week ahead, we are expecting the CPI report, which will give us more information on the deflation/inflation situation in Japan. BoJ Governor Muto warned that the BoJ is closely monitoring long-term rates, which hit a 45-month high yesterday. Although the rally in bond yields is reflective of the market’s optimism on the Japanese economic recovery, higher bond yields tighten the economy. If the tightening starts to damage the recovery, the BoJ may have to take appropriate measures.


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