User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday October 23, 2006 - 22:22:00 GMT
DailyFX.com - www.dailyfx.com

Share This Story:
| | Email

Forex - Dollar Rallies as Recent Fed speak Hint at Hawkish FOMC Statement

DailyFX Fundamentals 10-23-06

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

• Dollar Rallies as Recent Fed speak Hint at Hawkish FOMC Statement
• Japanese Officials Shrug Off Concern about Yen Value and Carry Trades
• Strong PPI Raises the Possibility of an RBA Rate Hike in November

US Dollar - Traders have bid up the US dollar as the stock market continues to power ahead and oil prices continue to fall. The lack of any meaningful US economic data today and for the most part tomorrow as well has most traders already looking ahead to Wednesday’s Federal Reserve rate decision. Interest rates are set to remain at 5.25 percent, but as we explored on Friday, the main focus will be on whether the central bank puts greater emphasis on the drop in headline inflation or the rise in core prices. It seems that the markets have already made up its mind about which way the Fed will swing. The rally in the US dollar suggests that the Fed will opt to focus on the sustained strength of core price inflation on both the consumer and producer level, which represents slightly hawkish comments. The odds are certainly in favor of this possibility as Fed official after Fed official has warned about inflation since the beginning of the month. Starting with Hoenig who is a non-voter, he characterized the current level of core inflation as too high. Fed Vice Chair Kohn said that the upside risks to the outlook for inflation warrant continued vigilance while Philadelphia Fed President Plosser and Richmond Fed Lacker hinted that policy may actually need to be firmer if core inflation continues to remain at current levels. Even Fed Chairman Bernanke said that inflation is still above what they would consider price stability. The comments range from cautiously hawkish to very hawkish with no one we have heard of late shying on the side of dovishness. When central bankers speak, we listen and their recent message has been quite unanimously clear. However we do want to point out that hawkish comments will not open up the risk for a rate hike. Instead, it will simply keep on the Fed on hold for a longer period of time with the market bias still looking for a rate cut before a hike as the next likely policy change.

Euro and Swiss Franc - The Euro has given back most of Thursday’s impressive gains as the market looks ahead to an interest rate meeting in US later this week. ECB officials continue to stand firm with their plans on raising their own interest rates again later this year. ECB member Wellink was the latest central banker to add fuel to fire as he said that the central bank “won’t deny” the market’s expectations for a December rate hike. Like most other ECB officials, he feels that interest rates still remain very low. The recent weakness in the Euro will make it even easier for the ECB to raise rates. We are once again moving close to the 1.25 support level in the Euro. It has held strong throughout the beginning of this month and we believe that it will take a lot to push the pair through it. However, the FOMC statement is a powerful one and extremely hawkish comments could be the catalyst that Euro bears have been waiting for. It can even diminish any bullishness that may come off of a stronger German IFO report. Should the IFO be weak however, expect a sell-off in the Euro to be exacerbated. The Swiss franc also sold off today, against both the US dollar and the Euro. There is no Swiss data until later this week but the market expects the sole KoF leading indicator report to have fallen in the month of October, which would be in line with the recent strength that we have seen in EUR/CHF.

British Pound – Broad dollar strength has also hit the British pound which has had an exceptionally good two weeks. Despite the lack of significant UK data this week, the strong GDP and inflation reports should continue to resonate in the market. Traders are looking for the Bank of England to resurrect its rate hikes later this year, but the CBI manufacturing and distributive trade surveys are the only pieces of data that we have this week to confirm or deny that. This means that the only thing we have good confidence in is the fact that GBP/USD will put up a good fight with the Euro and as a result, EUR/GBP may be set for more range trading.

Japanese Yen – Although supermarket sales was the only piece of data that we had from Japan last night, there was some interesting comments from Japanese officials. Watanabe from the Ministry of Finance said that inflation remains weak and even though the yen has fallen significantly against both the Euro and US dollar since the beginning of the year and is sitting near its year to date lows against both, he does not feel that it is currently weak. This signals that the Japanese government is not about to consider intervening to strengthen the yen and essentially feel that exchange rates will eventually correct themselves. We doubt they will feel the same if this was yen strength that we are talking about instead of yen weakness. In regards to carry trades, Watanabe says that they size and impact has been over exaggerated which also suggest that they are not worried about it at the current moment. With the Japanese government not standing in the way of further yen strength, we have already seen AUD/JPY hit a 10 month high and we would not be surprised to see other yen crosses also continue to rally.

 

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

1.

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, 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