User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday April 25, 2006 - 21:31:07 GMT
FXCM - www.dailyfx.com

Share This Story:
| | Email

Forex: Yen Retraces Against All Majors

DailyFX Fundamentals 04-25-06

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

- Dollar Moves Limited as Market Wonders Whether Strong Confidence and Existing Home Sales Can be Repeated
- Euro Shoots Higher as Business Confidence Rises to 15 Year Highs
- Yen Retraces Against All Majors

US Dollar

Earlier gains in the US dollar were reversed as the market questioned the sustainability of the stronger economic reports. Soaring oil prices seemed to have little impact on the sentiment of consumers as their confidence hit 4 year highs. The market was expecting confidence to dip from 107.2 to 106.2, but instead it jumped from an upwardly revised 107.5 to 109.6 for the month of April. It seems that the comfort of a booming labor market is offsetting the strain that consumers may be feeling at the pump, but if pump prices continue to rise, it is only a matter of time that sentiment also turns sour. Taking a look at the previous rallies that we have seen in oil over the past year, such as the June to August move and then the December to January move, it wasn’t until we hit a peak in oil that consumer confidence began to topple. In both instances confidence saw big jumps before paring back significantly. Another piece data that came in stronger than expected but its sustainability remained questionable was the existing home sales report for the month of March. Existing home sales increased from 6.9 million to 6.92 million. Although the actual increase was nominal, it was substantial compared to the market’s forecast for a dip to 6.66 million. The worry is that existing home sales tends to be a lagging indicator because it reflects sales that were completed in March. This means that the actual purchase was probably made a month or two before that. Even though tomorrow’s new home sales report is for a smaller sector of the overall market, it tends to be seen as a more reliable reflection of how well the housing market is currently doing because the sales are recorded in the index as soon as the initial contract is signed. There was a huge drop in new home sales reported last month which suggests that a rebound is not out of question. However, if the rebound comes in far higher than the current forecast, then the arguments for a stabilizing real estate market may be more accurate. Durable goods are also on tap tomorrow along with the Beige Book report. Market expectations suggest that both could to be bearish for the dollar. Against some currencies, we have seen an extension of dollar weakness while for others, today will probably prove to be nothing more than a mere retracement.

Euro

The Euro is stronger today thanks to mostly positive economic data. To the surprise of the market, German business confidence shot to a 15 year high in the month of April. This is also the index’s fifth consecutive monthly rise. Originally expected to dip, the index instead rose from 105.4 to 105.9. Increases were seen in both the current assessment and expectation components of the report, reflecting the economic recovery that is occurring in the Eurozone’s largest economy. Although some skeptics say this may be the peak in the IFO report, it nevertheless confirms the need for the central bank to remain hawkish. This is especially true after the big jump in German consumer prices in the month of April. The annualized rate of CPI growth increased from 1.8 percent to 2.0 percent with the harmonized rate rising from 1.9 percent to 2.3 percent. This brings the CPI back to levels that should raise concerns at the European Central Bank. Last night’s comments from ECB President Trichet was bullish on growth but he downplayed a May rate hike again by saying that the ECB needs to remain “extremely cautious” given the “potential dangers” that high oil and commodity prices can unleash on the global economy. For the most part, he focused his speech on calling for more appreciation in Asian currencies in general and not just China. The improved performance of the Eurozone and the divergence from the pace of growth in the UK continues to benefit the EUR/GBP cross. Finally, the only damper in today’s basket of data was trade numbers which came in mixed. Current account for the region widened more than expected but the trade balance came in narrower.

British Pound

The British pound strengthened against the dollar for the third consecutive day. CBI industrial orders for the month of April was the only piece of data released today. The index improved from -16 to -11 in March, which is the highest reading in the index since Feb 2005. Tomorrow the market will be anticipating the first quarter GDP. Growth is expected to remain stable at 0.6 percent . The country’s gradual recovery would be consistent with recent data. Wage growth was also stable at 3.0 percent. For the time being, unless a new wave of merger and acquisition news sweeps the UK, the British pound will continue to trade based upon dollar factors or its relative performance compared to the Eurozone economy.

Japanese Yen

After Monday’s extensive moves, the Japanese Yen gave back a small portion of its gains against the majors today. In general, over the past few months, moves to the downside in dollar yen have been far more brutal than moves to upside. The reason is because the risks for the Yen are more weighted to the downside than the upside. The only upside factors keeping the yen lifted are higher interest rates in the US and the Bank of Japan’s zero interest rate policy. However if there was ever to be a surprise similar to the one this weekend, the possibilities are greater in favor of the yen than the dollar. The market has been hanging onto the possibility of either more revaluation from China or a much anticipated move on monetary policy from the Bank of Japan – both of which would be positive for the yen and negative for the US 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."



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