User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday January 24, 2007 - 22:39:59 GMT -

Share This Story:
| | Email

Forex - New Zealand dollar Rebounds after RBNZ Retains Hawkish Tone

DailyFX Fundamentals 01-24-07

By Kathy Lien, Chief Strategist of

- Japanese Yen Ends 2 Week Losing Streak on Carry Trade Liquidation
- Euro Traders Look for New 16 Year High in German IFO Report
- New Zealand dollar Rebounds after RBNZ Retains Hawkish Tone

US Dollar
The US dollar is higher today against most of the other major currencies, but this was not due to any dollar positive news. Instead, the lack of any US data actually helped the dollar benefit from weakness elsewhere. The Australian dollar, British pound and Japanese Yen were the big movers of the day. Exceptionally weak Australian consumer prices and less hawkish minutes from the latest Bank of England monetary policy meeting triggered a wave of carry trade liquidation that put an end to the Japanese Yen’s close to two week slide. The one currency that the dollar did not rally against was the Japanese Yen as it too fell victim to carry trade liquidation. Meanwhile the President delivered nothing more than comparably humble comments at his State of the Union Address last night, which led to zero reaction in the currency market. The US dollar however is benefiting from the strength in the stock market, which hit a new record high on an intraday basis. The economic calendar is light tomorrow with existing home sales and jobless claims due for release. Sales of previously owned homes increased for 2 months in a row, suggesting a potential bottom in the housing market. Analysts are projecting a decrease but given the trend of mortgage applications in the month of December, sales could have held steady. Jobless claims are also projected to rise but that is primarily due to the surprise improvements that we have seen over the past week. Therefore these projections are mostly based upon adjustments rather than expected deterioration in the US economy. Should these reports come out strongly, the dollar could extend its move in what is already a dollar positive environment.

The Euro has been hit by broad dollar strength despite the lack of any economic data today. However tomorrow will be different as we expect the German IFO report of business confidence. The EUR/USD has been trapped within a 200 pip trading range for the past 2.5 weeks and the German IFO is the currency pair’s only clear chance to break out. With European Central bank officials still backing another rate hike this quarter, a fresh 16 year high in business confidence could help drive the EUR/USD above its 1.3050 resistance zone. A weak print on the other hand would send the pair for a test of the year to date low at 1.2866. The market is currently looking for an improvement and such strength is not out of the question since the Euro has tumbled, oil prices have fallen while the stock market climbed to a six year high. In addition to the IFO, French business confidence and the Eurozone current account reports are also due for release. Deterioration is expected in both, but a strong IFO could easily erase any bearish sentiment. More ECB members are also due to speak and we are expecting similarly hawkish comments from both Stark and Gonzalez-Paramo.

British Pound
The British pound came under deep selling pressure today after the minutes from the latest Bank of England meeting revealed that the surprise rate hike was supported by only 5 out of the 9 members. The slim margin indicates a minimal chance for a February hike and a less than 50 percent chance for a March rate hike. The less hawkish statements support yesterday’s comments from Bank of England Governor King who indicated that the surprise rate hike represented more of a preemptive measure rather than the need for more aggressive tightening by the central bank. The dissenters were Chief Economist Bean, traditional hawks Tucker and Lomax as well as the usually dovish Blanchflower. The British pound has run up very strongly and very quickly on the back of future rate hike expectations. This raises the risk of a further correction as the market readjusts its expectations.

Japanese Yen
For the first time in close to 2 weeks, the Japanese Yen actually managed to stage some impressive gains as carry traders unwind their positions. The original run up in the high yielding currencies like AUD/JPY and GBP/JPY were driven by the prospects of higher interest rates in Australia and the UK followed by stable rates in Japan. Last week, Japan delivered the stable rate policy but today we learned that the Australian and UK central banks may not be as hawkish as initially expected. This caused a massive reversal and exodus out of long AUD/JPY and GBP/JPY trades. The downward surprise in the all-industry index and the possibility of G7 criticism about the weak yen at their meeting next month is adding to the pressure. The problem is that when carry trades unwind, it is usually not just a one day affair.

Commodity Currencies (CAD, AUD, NZD)
The Australian dollar completely collapsed today after consumer prices dropped by 0.1 percent in the fourth quarter. The market originally expected consumer prices to rise, which would keep the Reserve Bank on track to raise interest rates at least once this year. However the soft number now eliminates this possibility. Australian officials are thinking the same as well. In response to the release, Prime Minister Howard said that they are looking for more moderate inflation in the quarters to come. Finance Minster Michin noted that inflation is now within the RBA’s target band which should reduce the need for any rate hikes. The New Zealand dollar on the other hand staged a very strong intraday rebound after the central bank released their interest rate decision. The RBNZ left interest rates unchanged but maintained a hawkish tone by saying “it is likely that further policy tightening will be required.” Stronger retail sales, consumer and business confidence as well as a stable housing market have kept the economy supported. This divergence in monetary policy outlook sent AUD/NZD to a 1 year low. The lack of economic data and stability in oil prices has kept the Canadian dollar basically unchanged against the US dollar.


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