User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday September 20, 2005 - 22:08:35 GMT
FXCM - www.dailyfx.com

Share This Story:
| | Email

Forex: Dollar Soars on FOMC Rate Decision

DailyFX Fundamentals 09-20-05

By Kathy Lien, Chief Strategist

· Dollar Soars on FOMC Rate Decision
· Pessimism Hangs Over Euro
· Weak Same Store Sales Sends Yen Lower

US Dollar

The dollar broke higher following the Federal Reserve’s eleventh consecutive interest rate hike to 3.75% from 3.50%. The market latched onto the hawkish tone of the statement and shrug off the dissenting vote by Fed President Olson. The fact that the Fed left in the buzzwords “accommodative” and “measured” has injected a new a dose of enthusiasm into the market. It seems that for the most part, the Fed has paved the way for another quarter point rate hike in November. Yet, the fact that the Fed expressed concerns for weakness in “near term” spending, production and employment data is somewhat concerning since it remains questionable as to whether the market is ready for a batch of weaker economic data for the month of September even if conditions are not expected to worsen. Tropical Strom Rita still poses a threat to the Gulf States and even though OPEC agreed to make the rest of their reserves available to consumers, they do not have extra barrels of light sweet crude oil, which is the grade of oil that can be easily turned into petrol. Meanwhile, it is interesting to note that Olson’s vote to keep interest rates unchanged is the first time that we have seen a vote that was not unanimous since June of 2003. If you recall, it wasn’t too long ago across the pond that before the UK Monetary Policy Committee lowered rates, there were a few meetings where the final decision was not unanimous and after 2 meetings, more voters began to sway away from the neutral stance towards voting in favor of lowering rates – which was what eventually occurred. Applying this to the US, perhaps, Olson's dissenting vote may be more significant than we think.

Euro

The Euro is weaker once again following the Federal Reserve’s interest rate decision. Taking a look at the only piece of major economic data released from the Eurozone this morning and we see that the Germany elections played a big role in dampening sentiment for the month of September. The ZEW survey of German economic sentiment slipped 11.4 points to 38.6 from 50. Uncertainty about what economic policy will look like in the months and even years ahead has had a negative impact on investment sentiment. It appears that investors and analysts also fear that oil prices will sap domestic demand and Hurricane Katrina will slow global economic progress. So basically the expectations component deteriorated while the current conditions component improved. Politics should continue to dominate the headlines until we can get more clarity on how the new government in Germany will be structured.

British Pound

Another day, another conflicting housing price report in the United Kingdom. This time around, according to the Royal Institution of Chartered Surveyors, housing prices fell in the month of August. However, notably, the price decline fell the slowest in a year as the report revealed new buyer enquiries actually rose on the month. In addition, completed sales were also higher for the second month running, bouncing from the 7.5 percent low recorded in the month of February. Ultimately, this placed the balance of surveyors at a negative 26 percent for the month compared to a negative 36 percent reading in the prior period. With that said, noticeable similarities exist between both yesterday’s RICS and Rightmove housing prices report. Both reports point to continued price decreases. However, the pace at which these declines are running is beginning to slow in addition to a pickup in sales and consumer interest in residential property. Now, although rebound in prices may be a premature notion at this point in time, the fact that similarities do exist now suggests that the housing market may in fact be forming a bottom. A result of the first interest rate cuts in over two years, this bodes well for the economy as the sector has been a persistent concern for consumers and policy makers alike since sluggishness was first witnessed earlier this year. Ultimately, with slightly less pressure being applied by the housing sector, the only thing left to completely ease the mind of a central banker looks to be consumer spending as pound bulls look to take advantage of the silver lining.

Japanese Yen

Back from the holiday, traders digested annualized convenience store sales data for the month of August. To the yen bull’s utter disappointment, sales on a same store basis fell for the 13th consecutive month according to the Japan Franchise Association. This now is the 27th monthly decline in the past 30 months and doesn’t reflect well for an industrialized economy that is supposedly on track to positive expansion. Most notably in the overall figure, average consumer purchases fell 1.2 percent as the number of customers remained constant. With continued downside in consumer figures, this now leaves many to speculate that instead of individual spending strength, the world’s second largest economy may be fully underpinned by business investment in the near term as higher oil prices continue to remain a burden on the average individual’s wallet. Separately, however, foreign investors look to be furthering their bets on a full recovery as equity benchmarks reached fresh 4-year highs at the close. Advancing 0.8 percent higher, the Nikkei 225 Average closed above 13,000 at 13,061.44 as investors exited out of fixed income instruments. The last time this level was witnessed was back in 2001.

 

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