User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday May 9, 2006 - 21:52:18 GMT
Reuters -

Share This Story:
| | Email

FOREX-Dollar down as markets expect Fed to hint at rate pause

FOREX-Dollar down as markets expect Fed to hint at rate pause
Tue May 9, 2006 5:06 PM ET

(Updates prices, adds comment)

By Gertrude Chavez-Dreyfuss

NEW YORK, May 9 (Reuters) - The dollar softened on Tuesday, hurt by expectations the Federal Reserve will signal a pause in its near two-year campaign to tighten credit at Wednesday's monetary policy meeting, where it is widely seen raising interest rates for a 16th straight time.

"The expectation going into tomorrow's Fed announcement is that they're going to indicate a pause" in the accompanying statement, said Brian Dolan, director of foreign exchange research at Gain Capital in Bedminster, New Jersey.

"So I think the market is leaning toward being short dollars going into the FOMC (Federal Open Market Committee) statement," he added.

The Fed on Wednesday is widely expected to lift its benchmark overnight federal funds rate by a quarter-percentage point, from 4.75 percent to 5 percent, double the European Central Bank's equivalent 2.5 percent rate.

But investors are uncertain about the Fed's future moves and eager to see if the central bank points to a pause in the current monetary tightening cycle in its post-meeting statement.

In late afternoon trading, the euro gained 0.4 percent to $1.2750, moving closer to the one-year high of $1.2787 touched on Monday.

Sterling was also up 0.4 percent against the dollar, at $1.8659. Against the Swiss franc, the dollar fell 0.6 percent to 1.2209 francs.

Several traders also partly attributed the heavy dollar selling to market talk about currency reserve diversification, a large Middle Eastern oil exporter looking to price oil in euros, and soaring gold prices.

Spot gold rose to a a 25-year high above $700 per ounce on Tuesday, boosted by investment buying due to the weaker dollar, record high platinum prices and geopolitical tensions, traders said.

The market was also anticipating a U.S. Treasury report on currency practices of trading partners due on Wednesday, with investors focused on whether China will be named a country that manipulates its currency.

Some analysts believe China may not be named a manipulator, based on recent statements by U.S. Treasury officials. On Monday, U.S. Treasury spokesman Tony Fratto said the department is convinced China is moving toward adopting increased currency flexibility, although it would like to see China do it more quickly.

"It looks very much as though the Treasury will again refrain from explicitly labeling China," said Ray Attrill, an analyst at 4Cast Inc., in a research report.

"It looks like one potential source of additional (short-term) downward pressure on the dollar is about to be lifted," he added, although he believes investors may have already bet against the Treasury coming down on China, even if the language of the report turns out to be more strident than in the past.

Against the Japanese yen, the dollar fell 0.6 percent to 111.05 yen . The U.S. currency earlier fell to an eight-month low of 110.90 yen, with the Japanese currency supported by a media report that stoked expectations the Bank of Japan will raise interest rates as soon as July.

Tuesday's biggest mover, however, was the Canadian dollar, which pushed the U.S. currency down more than 1 percent at C$1.1000 as New York gold prices soared. The greenback at one point dipped below the key C$1.10 level, which validated the pair's bearish trend.

"Pretty much everybody is selling dollar/Canada and we have seen some selling from the corporate side of things ... We probably would trade down to C$1.08," said Shaun Osborne, chief currency strategist at Scotia Capital in Toronto.

© 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