User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday September 13, 2006 - 11:05:07 GMT
Reuters -

Share This Story:
| | Email

FOREX-Yen rebounds before G7; Swissie languishes

FOREX-Yen rebounds before G7; Swissie languishes
Wed Sep 13, 2006 6:20am ET184

(Updates prices, adds quotes, changes byline)

By Sujata Rao

LONDON, Sept 13 (Reuters) - The yen rebounded from five-month lows versus the dollar on Wednesday, drawing support from this weekend's Group of Seven (G7) meeting though investors' renewed focus on carry trades could pose some risks to the Japanese currency.

The carry trade resurgence also hit fellow low-yielder Swiss franc which hit 6-1/2 year troughs versus the euro, and two-month lows against the dollar, especially after a Swiss central banker quashed talk of more aggressive rate hikes.

But the yen fared better due to expectations it will be discussed at this weekend's G7 finance ministers' meeting.

Speculation over what the G7 may say has helped to counteract yen-negative factors such as recent weak Japanese data and the currency's popularity as a funding unit for use in carry trades.

"(The yen rebound) is logical after the selloff which went pretty far yesterday. Ahead of the G7 it was possibly a bit aggressive because the meeting could yield some dollar-negative and yen-positive comments," said Peter Fontaine, currency strategist at KBC in Brussels.

"There is a risk that Asian currencies could come back so people have been taking chips off the table at this point."

By 1001 GMT, the yen had ticked up from Tuesday's five-month lows of 118.14 per dollar to trade at 117.61. It firmed about a quarter percent versus the euro to 149.23 yen .

The yen also received a boost after a senior Chinese parliament official said the rapid growth in the country's foreign exchange reserves is putting heavy pressure on the adjustment of the yuan exchange rate. He added that 2008 could be an appropriate time to make the yuan convertible.

While the yen ticked higher after the comments by Cheng Siwei, analysts saw the comments merely as part of China's ongoing gradual steps towards currency flexibility.

The prospect of a stronger yuan is usually seen as a reason to buy yen, considered a proxy for the tightly-controlled Chinese currency.

Traders are also reluctant to go short yen before a 1500 GMT speech by U.S. Treasury Secretary Henry Paulson. Some in the market expect Paulson to emphasise a strong dollar policy while expressing the need for structural reforms in Asian currencies.

On the other hand, the renewed interest in carry trades -- the practice of borrowing low-yielding currencies such as the yen to invest in higher-yield assets overseas -- could take a toll on the Japanese currency once the G7 is past, analysts say.

Japanese interest rates, at a meagre 0.25 percent, are expected to rise only slowly, making it an optimum currency to fund carry trades. On the other hand, rates have continued to increase in the euro zone and Britain, and could also still rise in the United States. "Clearly over the past month, carry trades have been in vogue and driving the market. For the Swiss franc and the yen, the low yielders, that is a risk going forward," said Martin McMahon, FX strategist at Credit Suisse in Zurich.

Euro/dollar moved sideways to trade flat at $1.2679 .

U.S. consumer prices and retail sales data later this week will be key for the dollar's fortunes as they may provide clues on whether U.S. interest rates have indeed stopped rising.


The Swiss franc hit a 6-1/2 year low of 1.5911 francs per euro . The Swissie also hit a two-month low versus the dollar at 1.2549 francs .

Along with the yen, the Swiss franc is one of the lowest yielding major currencies. The Swiss National Bank is widely expected to raise rates by 25 basis points on Thursday, taking the mid-point of its target band for the three-month Swiss franc LIBOR to 1.75 percent.

In comparison, euro zone rates are at 3.0 percent and U.S. rates at 5.25 percent.

But any expectations for more aggressive tightening in Switzerland were quashed by SNB policymaker Philipp Hildebrand, who said in a magazine interview published on Tuesday that Swiss growth will slow next year.

"We and the market think that given his cautious statement on the economic cycle, a gradual approach in normalising rates may still be the bank's preferred scenario. As such, a more aggressive stance or even inter-meeting hikes have become less likely," UBS said in a note to clients.

Elsewhere, sterling slipped against the dollar and the euro after softer-than-expected rise in average earnings in the three months to July, meaning an interest rate rise in November is by no means a foregone conclusion.

© Reuters 2006. All Rights Reserve


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

Mon 23 July 2018
A 14:00 US- Existing Homes Sales
Tue 24 July 2018
AFlash PMIs
Wed 25 July 2018
A 08:00 DE- IFO Survey
A 14:00 US- New Homes Sales
A 14:30 US- EIA Crude
Thu 26 July 2018
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
A 12:30 US- Durable Goods
Fri 27 July 2018
AA 12:30 US- GDP
A 14:00 US- Final University of Michigan

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