User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Thursday September 28, 2006 - 21:04:00 GMT

Share This Story:
| | Email

Forex - Rally in Dow and Demand For Treasuries Keeps Dollar Propped

DailyFX Fundametnals 09-28-06

By Kathy Lien Chief Strategist of

- Rally in Dow and Demand For Treasuries Keeps Dollar Propped
- Pound Collapses as Inflation Worries Subside
- EUR/JPY – Is it Time for Intervention?

US Dollar

US growth figures for the second quarter were revised lower, but this is hardly surprising given the recent trend of economic data. Weaker residential investment growth played a major role in the downward revision which suggests that housing could continue to drag the economy lower in the third quarter. The market has become accustomed to signs of slower growth and as such, there has been minimal reaction in the currency market. Aside from GDP, the number of help wanted ads also fell to a 45 year low in the month of August which is not an inconsequential milestone. This is very negative ahead of next week’s non-farm payrolls release. Analysts are currently forecasting just slightly lower job growth compared to the previous month, but given the drop in the help wanted index, it is more likely that we will see an even weaker reading. At least the housing market and real estate sector will no longer need as many real estate agents, brokers, contractors, and other construction related jobs. However, the US dollar has held on strong. With the Dow just a few points away from hitting an all-time high, the rally may be too attractive for foreign investors to ignore, even if everyone is telling them that the outlook for the US economy is grim. Couple that with 5.25 percent interest rates and we can understand why the US dollar has not buckled down yet. Demand for Treasury auctions have been very strong lately, which suggests that the sharp drop in foreign purchases of US securities reported earlier this month may be just a one month anomaly. Positioning continues to be very cautious at the moment as the market waits for a cue to take the dollar out of its ranges.


Even though the Euro ends the day unchanged against the US dollar, the true fundamentals of the Eurozone is reflected in the single currency’s rally against the Japanese Yen, British pound and Swiss Franc. As we mentioned yesterday, when things are dull, we turn to currency crosses for more excitement. Both German unemployment and French GDP came out stronger than expected for the month of September. The data indicates that many Germans who acquired jobs during the World Cup have not been laid off. This is very encouraging and could fuel further spending before the VAT tax increase at the end of the year. Over in the France, even though we are happy to see that French GDP was bumped up to 1.2 percent from 1.1 percent in the second quarter, we were not as ecstatic about the country’s 9k increase in unemployment in the month of August. Originally expected to drop for the seventh consecutive month, unemployment actually increased. However despite the weaker employment number, recent Eurozone data still supports another interest rate hike by the central bank. The question is only whether we should expect one or two more before the end of the year. Tomorrow’s economic data could tilt the scales as we are expecting German retail sales, along with consumer confidence and CPI numbers from the Eurozone and France.

British Pound

The British pound was the day’s biggest market mover as it lost over 150 pips against the dollar and 55 pips against the Euro. Fifty pips in EUR/GBP is huge, especially since it comes after a 30 pip rise the prior day. The currency collapsed against everything in sight after the Office for National Statistics announced that there was a drastic error in its calculation of annual inflation in export prices. The estimate was slashed to 0.6% from 3.8%, and subsequently pushed the ONS estimate of overall inflation in the UK down from 3.4% to 2.2%. Additionally, annual nominal GDP was revised down to 4.8% from 6.0%. Given that recent economic data was already calling for no rate changes by the Bank of England for the remainder of the year, this latest admission should squash the hopes of any wishful thinkers. Stripping the central bank of any worries about inflation, they can sit back, relax and enjoy the fall weather. The housing market continues to stabilize as indicated by the up tick in house prices, which means their attempt to engineer a soft landing in housing was a big success. Looking ahead, we are expecting more housing market releases tomorrow along with consumer confidence. Both are expected to show improvements, which could help the pound recuperate some of its recent losses.

Japanese Yen

Yesterday, Japan’s new finance minister Omi said that he was not worried about the value of EUR/JPY, yet today his vice finance minister Fujii called the recent moves in EUR/JPY a bit rough. Perhaps he was clarifying his boss’ words as Hideto Fujii has a bit more experience having been vice finance minister since July when he was appointed as part of a cabinet reshuffling. With EUR/JPY headed back towards its all-time highs, we expect to hear more verbal intervention from the Japanese government or else they will face the wrath of other G7 finance ministers. Physical intervention is unlikely since Japan benefits greatly from the weak yen. Not only does it help to boost exports, but it also helps to encourage more domestic spending, which Japan really needs. However if Japanese government officials finally agree and sing the same tune on the Yen by collectively expressing their discontent with its weakness, we could finally see the pair top out.


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 18 December 2017

Register for the Amazing Trader


Amazing Trader EVENT RISK Calendar:

Mon 18 Dec
10:00 EZ- final HICP
Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account
Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude
Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP
Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes
Mon 25 Dec
00:00 Christmas Holidays

Forex Trading Outlook

Potential Trading Opportunities

  • POTENTIAL PRICE RISK: Medium Mon--10:00 GMT-- EZ- final November HICP. flash data are rarely changed.

  • POTENTIAL PRICE RISK: HIGH- Medium Tue --09:00 GMT-- DE- IFO Survey. Key report but usually not a market-mover
  • POTENTIAL PRICE RISK: HIGH- Medium- Tue --13:30 GMT-- US- Housing Starts and Permits. Leading indicators of activity

  • POTENTIAL PRICE RISK: HIGH-Medium- Wed --15:00-- US- Existing Homes Sales. Top Housing statistic
  • POTENTIAL PRICE RISK: Medium- Wed --15:30-- US- EIA Crude

John M. Bland, MBA
co-founding Partner, EXCLUSIVE: Global-View Daily Trading Chart Points Updated

EXCLUSIVE: Global-View Free Forex Database updated


Trader's Advocate Articles..


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.



Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105