User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday November 23, 2005 - 16:46:04 GMT
FXCM - www.dailyfx.com

Share This Story:
| | Email

Forex: Euro Remains Bid As Market Looks Ahead to ECB Rate Hike

DailyFX Fundamentals 11-23-05

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

***NEXT RELEASE WILL BE ON MONDAY NOV 28TH

• Euro Remains Bid As Market Looks Ahead to ECB Rate Hike
• BoE Centers Focus on Wage Growth
• Yen Rallies as BoJ Tries to Exert Independence

US Dollar

It is the day before the Thanksgiving holiday here in the US and most dealers are thinking more about their long trips home than taking new positions in the markets. We have been seeing quite a bit of profit taking across the board in dollar pairs as the market gears up for two days of illiquid trading. There were a sprinkling of releases out from the US today including mortgage applications, jobless claims, the University of Michigan consumer confidence survey and the help wanted index. According to the mortgage applications data, which saw a 3.4 percent fall in applications, the housing market continues to show signs of weakness. The labor market will be a big focus next week with non-farm payrolls due for release on Friday. Today, we saw the first hints of how the market may have been performing. Jobless claims ticked higher to 335k from 305k. According to the BLS, 10k of that rise was probably attributed to the Hurricanes. The help wanted index for the month of October remained unchanged at a downwardly revised 38. Despite the modest disappointments, the optimism for November payrolls is high. After the sharp disappointment reported last month, analysts once again expect over 200k jobs to have been created last month. Analyst estimates have been so off recently that they have become virtually unreliable. However, surveying the economy, it does appear that growth is picking up as well as the rebuilding efforts for Hurricane laden regions, which could help to boost payrolls. Aside from NFPs, there are a number of other pieces of data worth watching including durable goods, consumer confidence, GDP, Chicago PMI, the Beige Book and ISM. All of this should provide us with more insight into how long the Fed plans on maintaining their aggressive tightening cycle as well as inject some more volatility into the currency markets.

Euro

With only Eurozone industrial orders and Italian consumer confidence released this morning, focus for Euro traders continue to be the imminent rate hike next week. Both industrial orders and consumer confidence came out stronger than expected, but neither did much to bolster the Euro. Instead, profit taking remains the predominant theme as US traders square up ahead of the holiday. However, for the rest of this week and most of next, one of the big topics on the mind of FX traders will be the ECB’s first rate hike in 2.5 years expected on Thursday. Now judging from the recent comments by ECB officials, the rate hike itself seems to be a near certainty. High energy prices have increased inflationary pressures, but the real question will be whether the central bank follows up with a series of hikes or not. According to comments by ECB Wellink this morning, rate hikes come in small steps and the central bank wants to be very careful not to over hike such that they are then forced to lower rates shortly afterwards. Quaden confirmed our perception that the ECB believes that slow and steady wins the race, as he compared the central bank’s first move to “taking the foot off the gas rather than slamming on the brakes.” Overall, it seems that the ECB wants the market to believe that they will keep monetary policy accommodative after the hike so that growth continues to improve.

British Pound

The main focus today was the minutes from the most recent Bank of England Monetary policy meeting. According to the report, the latest decision to keep interest rates unchanged was based on a unanimous 9-0 vote. There was a minority group that believed one person could have voted in favor of a rate cut. If this was true, it would be perceived as a bearish signal for the British Pound. Instead, the unchanged view validates the general belief that the MPC is really taking one step at a time and watching the trend of data very closely before determining their next step on rates. The report indicated that views diverged tremendously within the BoE. Some members saw weaker growth for the second half of the forecast period while others saw stabilization or improvements. It certainly doesn’t help that data released thus far has been very mixed. The main focus seems to be on wage growth. BoE Walton said today that the central bank will focus the path of interest rates on wage settlements. So this too, will be one of our main focus as we assess data in the weeks and months ahead.

Japanese Yen

The Japanese Yen has weakened for the third consecutive trading session with the USDJPY currency pair showing signs of rolling over. The Japanese markets were closed today, so most of the move was probably related to overall profit taking. Comments from Bank of Japan Governor Fukui did cause a bit of jitter as he downplays recent comments by Prime Minister Koizumi. Fukui warned that the BoJ alone would decide when to end their zero interest rate policy and not anyone else. This takes a direct stab at Koizumi’s rare comments on monetary policy last Monday. In a question and answer session, the Prime Minister had said that he thinks “it may be too early” to end the BoJ’s quantitative easing. It remains to be seen whether the BoJ can be truly independent.

 

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 18 December 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

Mon 18 Dec
10:00 EZ- final HICP
Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account
Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude
Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP
Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes
Mon 25 Dec
00:00 Christmas Holidays

Forex Trading Outlook


Potential Trading Opportunities

  • POTENTIAL PRICE RISK: Medium Mon--10:00 GMT-- EZ- final November HICP. flash data are rarely changed.


  • POTENTIAL PRICE RISK: HIGH- Medium Tue --09:00 GMT-- DE- IFO Survey. Key report but usually not a market-mover
  • POTENTIAL PRICE RISK: HIGH- Medium- Tue --13:30 GMT-- US- Housing Starts and Permits. Leading indicators of activity

  • POTENTIAL PRICE RISK: HIGH-Medium- Wed --15:00-- US- Existing Homes Sales. Top Housing statistic
  • POTENTIAL PRICE RISK: Medium- Wed --15:30-- US- EIA Crude

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