User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday January 9, 2006 - 21:57:32 GMT

Share This Story:
| | Email

Forex: Dollar Rebounds as Oil Prices Recede and Dow Tests 11,000

DailyFX Fundamentals 01-06-05

By Kathy Lien, Chief Strategist of

• Dollar Rebounds as Oil Prices Recede and Dow Tests 11,000
• Euro Fails to Rally Despite Stronger Data and Hawkish Comments
• Reserve Diversification Back in focus

US Dollar

After starting the New Year on a weaker footing, the dollar has managed to recuperate some of last week’s losses. The recovery however was far from broad based since the dollar only managed to register gains against the Euro, British Pound, Swiss Franc, Australian Dollar and the Canadian Dollar. Against the Japanese Yen and New Zealand Dollar, the greenback lost ground once again. With no major US economic releases on the calendar, except for consumer credit late in the day, the dollar simply benefited from profit taking by dollar bears, softer oil prices and another strong day in the stock market. In fact, even though prices have since moved lower, today was the first time that we have seen the Dow break above 11,000 since June 2001. Even though the stock market is continuing to move higher, the prospect for the dollar is not as optimistic. The market continues to believe that the Fed is shifting to a more neutral policy. Fed Presidents Hoenig and Guynn were both a bit more cautious with their outlook for US rates. Hoenig, who is a non-voter this year said that interest rates are near “neutrality” while Guynn who tried to avoid making any direct comments about interest rates did mention that he expects the housing market to slow this year. The handing off of the baton will make Fed speeches even more important this year since the market may no longer write-off the Fed decision as the Chairman’s decision. Through most of Greenspan’s tenure, there was an age old rumor that Greenspan penned the statement before the actual meeting, even though the decision is suppose to be a majority vote. With the new leader, the voting process may be more important, especially in the beginning of Bernanke’s tenure. Consumer credit fell for the second month in a row at a time when the market had originally predicted for borrowing to rebound. This is yet another piece of evidence that higher interest rates have taken a bite into the pocketbooks of consumers – a trend we expect to continue.


The Euro experienced its first meaningful day of losses since the beginning of the year. Stripping out the dollar component, the move is actually counterintuitive to the day’s developments since the ECB made positive comments while Eurozone economic data surprised to the upside. The German current account surplus for the month of November increased to EUR 8.1 billion from EUR6.2 billion. Both imports and exports fell on a monthly basis, but on an annualized basis, exports and imports increased. The export sector is still recovering modestly but it seems that the country will be relying more on domestic demand to accelerate the recovery. This will be even truer as the Euro continues to rally, since the increased valuation will only make European exports less attractive. Nevertheless, the retail sector is also improving with the Eurozone retail PMI index increasing from 50.7 to 52.2. Accelerated activity was reported in all three of the major countries - Germany, France and Italy. Even though the market shrugged off comments from ECB member Wellink, his words is illustrative of where the central bank stands. According to Wellink, “with given inflation expectations, with the economy getting stronger, the chance of a rate rise increases.” It is only a matter of time when the central bank will raise rates again.

British Pound

Like the Euro, the British pound gave back some of its recent gains against the dollar. Despite an up tick in house prices, the growth was the slowest in ten years. Halifax reported that house prices increased 1.0 percent in the month of December, leading to an annualized pace of growth of 5.1 percent. The housing market is recovering gradually, but the growth remains below trend, solidifying expectations for no changes at Thursday’s monetary policy meeting. Tonight’s BRC retail sales monitor should shed additional light on how well the economy is performing. Retail sales are expected to be particularly strong, rising over double the previous month. Should this be true, the British pound could resume its rise.

Japanese Yen

Japanese markets were closed for a holiday, but that did not stop the Japanese Yen from rising for the fifth consecutive day. In fact, the Japanese markets have been closed for most of last week, which means that foreigners have been fairly bullish on the Japanese Yen. Finance Minister Tanigaki gave the green light to recent movements by saying that he believes recent moves in the Yen are “in line with fundamentals.” Asian reserve diversification continues to bolster the Yen. Thailand, Taiwan, Japan and the Philippines have all recently reported an increase in foreign investment flows. This has helped to rally not only the stock markets of those respective countries but also their currencies. China has been a leader in this talk as they brought the issue back to the forefront with recent comments about diversifying their reserves away from the dollar.


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 17 July 2018
AA 08:30 GB- Employment
A 13:15 US- Industrial Production
AA 14:00 US-Powell Testimony
Wed 18 July 2018
AA 08:30 GB- CPI
A 12:30 US- Housing Starts/Permits
AA 14:00 US-Powell Testimony
Thu 19 July 2018
AA 1:30 AU- Employment
AA 08:30 GB- Retail Sales
A 14:30 US- EIA Crude
A 12:30 US- Weekly Jobless
Fri 20 Jun 2018
A 12:30 CA- CPI/Retail Sales

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