User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday December 13, 2005 - 22:11:37 GMT
FXCM - www.dailyfx.com

Share This Story:
| | Email

Forex: Greenspan Leaves the Door Open for Bernanke

DailyFX Fundamentals 12-13-05

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

• Greenspan Leaves the Door Open for Bernanke
• Pound Slides on Softer Inflation Report
• Yen Traders Looking Ahead to Stronger Tankan

US Dollar

Catching the market by surprise, the Fed released its decision 2 minutes early. The dollar sold off against the Euro as the statement contained a whiff of dovishness. In the new and much shorter statement, the Fed dropped the sentence, “the Committee believes that policy accommodation can be removed at a pace that is likely to be measured” and replaced it with “The Committee judges that some further measured policy firming is likely to be needed.” According to the Fed, core inflation still remains relatively low, but they will continue to watch economic data and the trend in energy prices to make sure inflation does not tick higher once again. We think the key really is the words “likely to be needed,” because this means is that the Fed is paving the way for a January rate hike, but leaving changes in March a bit more uncertain. This makes perfect sense since the January meeting will be the last that Greenspan will Chair. For the one in March, it will be Bernanke’s call and Greenspan wants to make sure that he doesn’t lock Bernanke into any situation where the market has pre-determined expectations. The new wording gives Bernanke ample flexibility to keep raising rates or leave them unchanged. Ever so diplomatic, Greenspan is clearly paving the way for a smooth and seamless transition and allowing Bernanke to adapt to the changing conditions of the economy. Given Bernanke’s past dovish statements regarding deflation, the Market may anticipate an easier monetary policy which could turn the market’s psychology against the dollar. Especially since the dollar’s bullishness has been primarily brought on by the Fed’s relentless rate hikes over the past 18 months. Meanwhile, retail sales came out softer than expected for the month of November due to a 5.9 percent drop in gasoline receipts. The Fed has noted that they are watching the trend of economic data very closely and their next move with interest rates will be based upon the trend of future data. If the economy’s growth continues to slow, they may be tempted to end their tightening cycle sooner rather than later.

Euro

Despite the less hawkish FOMC statement and more encouraging Eurozone data, the Euro gave back some of yesterday’s explosive gains. The much awaited German ZEW survey of analyst expectations increased to a whopping 61.6, far above the market’s estimate of 41.0 and even further above the previous reading of 38.7. The assessment of economic performance in Europe also increased to 51.2, showing that confidence in the economic recovery of the region as a whole has increased significantly over the past month. Also, political uncertainty has somewhat subsided thanks to a conclusion reached by the coalition government. We have been seeing expectations for business activity to increase but domestic demand has still been dragging its feet. The weaker Euro has thus far seem to only benefit the export market, but that benefit has yet to filter into the pocketbooks of consumers. Meanwhile, consumer prices fell slightly more than expected in France for the month of November. The difference was subtle but slowing inflation is a trend that we are beginning to see across the globe. Even though energy prices are back above $60, the effect on overall prices has been muted.

British Pound

Like the Euro, the British pound retraced yesterday’s gains as consumer price growth failed to mirror that of the surprisingly strong producer price growth that was reported yesterday. In fact, headline CPI was unchanged on a monthly basis after rising only 0.1 percent in October. The annualized pace of growth also slowed from 2.3 percent to 2.1 percent. The retail price index, which is the benchmark used for wage negotiations, ticked higher by 0.2 percent but the annualized pace of growth also slowed from 2.5 percent to 2.4 percent. Overall the more dovish inflation numbers should keep the Bank of England thinking about when to lower interest rates again. Slower growth and softer inflation pressures should provide the perfect backdrop for continued dovishness.

Japanese Yen

The dollar retraced some of its losses against the Japanese Yen as the People’s Bank of China adviser Yu clarified his recent comments by saying that there will be no “drastic” diversification of China’s FX reserves and that any diversification would be done gradually. Yesterday, he had said that China would be looking to reduce the dollar component of its reserve basket, causing the dollar to sell-off significantly against the majors. These wishy washy comments and flip flopping is characteristic of Yu and not necessarily an accurate reflection of the central bank’s policy. Meanwhile there are still rumors circulating around that China may be prepared to revalue their currency once again on January 1st. Always preferring to catch the market by surprise, it is difficult to tell whether these rumors are justified. Over in Japan, industrial production was confirmed at 0.6 percent, suggesting that we could see a nice rebound in tonight’s fourth quarter Tankan report.

 

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 20 October 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

Fri 20 Oct
12:30 CA- Retail Sales & CPI
14:00 US- Existing Homes Sales


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: High Fri-- 12:30 GMT CA- Retail Sales and CPI. Top economic indicators.


  • POTENTIAL PRICE RISK: HIGH Fri-- 14:00 GMT US- Existing Homes Sales. Top Housing 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