User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday December 7, 2005 - 22:14:17 GMT
FXCM - www.dailyfx.com

Share This Story:
| | Email

Forex: Dollar Quietly Rallies Ahead of Next Week’s Fed Meeting

DailyFX Fundamentals 12-07-05

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

• Dollar Quietly Rallies Ahead of Next Week’s Fed Meeting
• Pound Slides as Market Thinks Treasury is Too Optimistic
• Tanigaki Confirms There is No Need to Worry About Yen Movements

US Dollar

The dollar quietly gained strength today as the market traded with little direction. Consumer credit, which barely causes a quiver for the greenback, still failed to do so even though it came out far off expectations. Expected to increase by $5.0 billion, consumer borrowing actually fell a record $7.2 billion, dragged lower by a drop in automobile financing. Gradually, we are beginning to see more signs of a clear slowdown in the housing market. It was only yesterday that pending home sales took a 3.2 percent tumble. Meanwhile, what did catch our eye today was the Challenger layoffs report, which indicated that layoffs increased 22 percent in the month of November, marking the index’s third consecutive rise. The action today was really in the other markets. Gold prices rose to a 24 year high and are in effect, becoming its own currency, with its own fundamentals. Traditionally, gold prices have had a strong inverse relationship with the US dollar. These days, the relationship between the two has decoupled significantly, as fund managers look for more ways to diversify their portfolios. Meanwhile, in a letter to a Congressman about policy neutrality, Greenspan skirted the issue of putting a number on the neutral rate. He said that it is difficult to estimate and targeting it is not completely reliable. On a broader scope, the dollar is benefiting modestly from the retracement in oil prices and is already looking ahead to next week’s interest rate hike. We will continue to look for subtle changes to the FOMC statement, especially since the last minutes released suggested that even though there will be nothing stopping the Fed from raising rates for the thirteenth time to 4.25 percent, the central bank feels that the wording in their statement needs to be changed eventually. Policy accommodation cannot continue being removed at a measured pace forever.

Euro

Like the US, the Eurozone economic calendar was as empty as a desert field. There were not even any noteworthy comments from the ECB or other government officials. The IMF spent some time calling for faster growth in Germany. We believe that this is what Germany wants as well, but with high unemployment and tough labor laws preventing companies from letting unproductive employees go, Germany and France have found themselves trapped in time, unable to match the quick pace of productivity seen in the US as well as Asia. Range trading has remained the predominant theme in the EURUSD for three weeks now as the market mulls over the pending fate of the currency pair. For the first three weeks of December last year, we were very much stuck in the same sort of trading environment that we are today. It was not until the last week of December that the currency pair really broke out to hit an all time high of 1.3631 before the New Year. With a fairly busy global calendar next week, there is still hope for a breakout move. Alternatively, big moves and trend continuations are still happening in the crosses.

British Pound

The British pound took a tumble today on word that the growth forecasts released by the Treasury yesterday may have been too optimistic. According to reports, growth should probably be more like 1.75 percent than the 2.75 to 3.75 percent touted by the Treasury yesterday. The Bank of England to slated to meet and decide on monetary policy tomorrow. It is pretty much a consensus that the central bank will be leaving interest rates on hold once again 4.50 percent. With next week’s expected rate hike from the Fed, the UK’s yield advantage would shrink to a measly 25bp, from the far more lucrative 150 that we started the year at. As the rate tips into the US’ favor, the pound could shed some of its recent gains. Economic data has been so mixed that even if the BoE does not lower rates, the best they can do is to keep it unchanged. The only glimmer of hope today was the stronger BRC shop price index report, which rebounded to 0.43 percent in the month of October from a -0.96 percent drop the previous month. This is slightly encouraging given the index’s reflection of consumer spending habits.

Japanese Yen

The dollar continued to hold on strongly against the Japanese Yen, or perhaps it is the other way around, that is the Yen traders have been resisting well to further losses. Either way, the USDJPY currency pair is hovering near its 2.5 year highs. Stronger Japanese leading economic indicators battled comments from Japanese Finance Minister Tanigaki. With the leading economic index at 80 percent and the coincident index at 88.9 percent, we are seeing signs that the region’s recovery may still be underway. Yet, the dabbling of the Prime Minister into monetary policy continues to concern traders. For the first time this year, Prime Minister Koizumi held an official meeting with Bank of Japan Governor Fukui. Even though Fukui said that they did not discuss the timing “of the end of quantitative easing,” traders remain doubtful that Koizumi would refrained from pressuring the BoJ to delay the removal of the country’s zero interest rate policy. In terms of currency movements, Yen bears found comfort in Tanigaki’s reiteration that FX movements are still in line with fundamentals.

 

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