User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday December 6, 2005 - 22:29:57 GMT

Share This Story:
| | Email

Forex: Dollar Traders Weary as Housing Market Data Turns Sour

DailyFX Fundamentals 12-06-05

By Kathy Lien, Chief Strategist of

- Dollar Traders Weary as Housing Market Data Turns Sour
- Pound Recuperates Losses Despite Weaker Data
- Yen Bears Continue to Take the Lead

US Dollar

Although the dollar ended the day relatively unchanged against the other majors, it failed to avoid some choppy intraday price action. Stronger productivity numbers were offset by weaker factory orders, Redbook retail sales and the pending home sales report. Even though the dollar rallied when productivity was revised higher to 4.7 percent from 4.1 percent in the third quarter, the gains were short lived once the 10am EST reports were released. Factory orders rebounded in the month of October, but given the exceptionally strong durable goods report that we saw for the same month, the 2.2 percent rise fell short of expectations. The deal killer though was the exceptionally weak home sales report for the month of October. Although the index is fairly volatile, it just reported a 3.2 percent drop in pending home sales, which is the first back to back slide since last December. We have been warning about a slowdown in the housing market for some time now. With interest rates and mortgage costs on the rise, we see a corresponding increase in the risks that the real estate market faces. Today, there was an article on Bloomberg touting the slump in the mortgage bond market. According to the piece, “Bonds backed by home loans to the riskiest borrowers, the fastest growing part of the $7.6 trillion mortgage market, have lost about 2.5 percent since September on concern an 18-month rise in interest rates may force more than 150,000 consumers to default.” Meanwhile, the weekly retail sales report published by Redbook also reported a 0.3 percent drop in sales for the week ending December 3rd. Before becoming overly concerned though, it has been quite standard to see a drop in sales the week following the Thanksgiving holiday. Tomorrow will probably be just as dull as today with consumer credit being the only release scheduled on the US economic calendar.


The trading range is contracting in the EUR/USD as the currency pair ends the day relatively unchanged. Today’s Eurozone economic releases painted a very similar picture to the service sector PMI reports released yesterday. According to the Bloomberg retail PMI reports, retail sales contracted in Germany and France while accelerating in Italy. The region’s two bigwigs are really lagging in growth based upon recent reports and that is certainly concerning. Yet, any pessimism was erased following the release of German factory orders for the month of October. Orders jumped by a more than expected 2.0 percent thanks to a sharp rise in both foreign and domestic orders. Of mild interest was also a speech by ECB member Hurley who confirmed the central bank’s hawkish but conservative stance. He said that interest rates are still low but the ECB needs to continue monitoring economic data closely before making their next decision. At this point, the market is also treading carefully. The hawkish but conservative comments from both sides of Atlantic has been swayed more to the US’ favor for some time now. We expect this to continue to be the case unless either camp shifts their stance markedly.

British Pound

Although the British pound ended the day unchanged, it staged quite a significant intraday recovery. The pound had dropped over 100 pips within an hour after the negative industrial and manufacturing data spurred speculation of a possible interest rate drop. Yet as the day went on, the pound was able to crawl back to post only a small net loss for the day. Industrial production, which was expected to gain 0.2 percent from September to October, actually dropped by 1 percent during the month with a year over year decline of 1.8 percent, 6 times the loss predicted. This is the largest decline in seven months. Manufacturing production, also expected to gain 0.2 percent during October, fell 0.7 percent in the month and 0.9 percent from October 2004. These depressing announcements add to the evidence that the industrial recession seen in the UK may persist despite recent indicators that seemed to hint otherwise. The prospects of a faltering economy have kept traders of the pound on edge as they watch the Bank of England’s policy makers for indications of a move in their rate stance. However, since the August drop, the Bank of England has moved away from even truly considering this policy, staying stagnant at a 4.5 percent target rate as the economy seemed to be stabilizing. Now, with the industrial sector poised to fall back into recession, the option of cutting rates may have re-entered the agenda of the Bank of England. Although it is still widely predicted that they will keep rates unchanged at their meeting this Thursday, a second rate cut may be pending in the near future as the US Fed continues to raise rates.

Japanese Yen

The Japanese Yen came near its 32 month lows against the dollar and touched record low against the Euro before rebounding. The currency’s continued weakness is being fueled further by comments from Japanese Finance Minister Sadakazu Tanigaki which indicated that officials are not going to resist the slide in the yen. Echoing comments made over the weekend at the G7 meetings in London, Tanigaki indicated that officials were not uncomfortable with the 15 percent decline of the currency thus far. This lack of opposition to the slide, along with a continually widening interest rate differential, opens up the yen to further declines as the dollar nears its largest annual gain against the yen since 1979. Traders shrugged off a seemingly important data release for the yen this morning which showed that overall household spending rose 2 percent from a year earlier during October. Although overall household spending declined by 0.1 percent in a month over month measure, the annual increase was still higher than expected and was the second rise in three months.


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