User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday May 8, 2006 - 10:23:31 GMT
Reuters -

Share This Story:
| | Email

FOREX-Dollar falls to 1-year lows, as Fed seen pausing

FOREX-Dollar falls to 1-year lows, as Fed seen pausing

(recasts, adds fresh quotes, updates prices)

By Toni Vorobyova

LONDON, May 8 (Reuters) - The dollar hit one-year troughs against the euro and sterling and a near eight-month low versus the yen on Monday, as U.S. rate rises were seen nearing an end, while strong data argued for tightening in Europe and Asia.

The yen was the biggest mover on the day among the majors, rallying by more than one percent against the dollar as comments from the Bank of Japan and strong data fuelled expectations that Japanese interest rates could rise soon.

In the euro zone, strong investor sentiment data for April supported forecasts for another rate hike in June. In Britain stronger than expected producer prices data cemented the view that interest rates will not be cut and may even be raised. But in the United States, weaker than expected non-farm payrolls data on Friday sparked a widespread dollar sell off. Most traders now expect that the U.S. Federal Reserve will raise rates to 5 percent on Wednesday, but will then signal a pause.

By 0952 GMT, the yen was down more than one percent against the dollar on the day, at 111.09 yen , around levels last seen in late September. The euro was at $1.2772 , the Swiss franc was at 1.22 francs per dollar and sterling at $1.8652 -- all three hitting one-year highs.

The dollar also hit a fresh one-year low against a basket of currencies <=USD> at 84.68 as Japanese investors jumped on the dollar-selling bandwagon on returning from Golden Week holidays.

"It is broad-based weak dollar sentiment," said Ian Gunner, head of foreign exchange research at Mellon.

"I think (the Fed) will pretty much confirm that they are done for now ... that it's a pause in the rate cycle but not necessarily a peak, but that would probably be enough to see the dollar weakening even further," he added.


The dollar has been under pressure since the Group of Seven finance ministers last month called on China and other emerging Asian economies to allow greater currency flexibility to help redress global imbalances.

Although some G7 officials have since said investors were wrong to read the statement as a call for a weaker dollar, a G7 central bank source on Monday stressed it was up to the markets and not monetary authorities to interpret the text.

In the euro zone, data from the Sentix research group said investment sentiment about the current situation was at its highest level in five years in April. The survey is seen by some as a good barometer for the German Ifo index.

ECB President Jean-Claude Trichet is due to give a news conference at 1100 GMT.

In Japan data showed that land prices rose in 2005 for the first time in 15 years, a further sign that deflation is ending.

Bank of Japan Governor Toshihiko Fukui said on Sunday Japan was in the process of removing excess liquidity from the short-term money market and it would take another few weeks to complete.

"(Fukui's comments are) consistent with the market's view that liquidity could be taken down to more normal levels by the end of June ... We could well see the market speculating that we could get an interest rate rise as early as the third quarter," said Ian Stannard, senior foreign exchange at BNP Paribas.


The yen was further supported by expectations that Japan would not intervene directly in the currency markets and might even refrain from verbal intervention.

Fukui declined on Monday to comment on the rising yen, as did Finance Minister Sadakazu Tanigaki.

Timothy Adams, the U.S. Treasury's undersecretary for international affairs, said last week that it was appropriate Japan had not intervened to stem yen strength since March 2004 but "we should all refrain" from commenting on exchange rates.

"We haven't had too many comments as yet with regard to the strength of the yen (from Japan), so I think at the moment it's not causing too much concern," said BNP's Stannard.

Later in the week, markets will focus on the U.S. Treasury report on currencies and on whether it names China as a currency manipulator keeping the yuan artificially weak. If this happens, the dollar is likely to weaken further against most majors, led by the yen which is often traded as a proxy for the yuan.

© Reuters 2006. All Rights Reserved.


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