User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Monday March 5, 2007 - 11:25:47 GMT
Reuters -

Share This Story:
| | Email

Forex News-Yen rallies as carry trade unwinding gathers pace

FOREX-Yen rallies as carry trade unwinding gathers pace
Mon Mar 5, 2007 6:16am ET145

(Updates price, adds quotes, changes byline)

By Natsuko Waki

LONDON, March 5 (Reuters) - The yen rose nearly two percent on the day against the euro on Monday and extended a rally to a three-month high versus the dollar as edgy investors unloaded risky carry trades in the face of tumbling stock markets.

Yen strength against major currencies, which saw it register its biggest weekly percentage gain versus sterling since November 1999 last week, has fuelled market volatility and investor anxiety as they rush to cut their exposure to risk.

Tokyo stocks posted their biggest one-day fall in nine months on Monday while Chinese stocks, which triggered a global sell-off last week, dropped 4 percent at one point.

European shares were down around 2 percent while U.S. futures were pointing to a lower open on Wall Street later.

Falling stocks, along with concern about the U.S. economy, are prompting nervous investors to liquidate carry trades where they sold the low-yielding yen to buy higher-return assets.

"Risk reduction is taking place and price action is feeding itself," said Adarsh Sinha, currency strategist at Barclays Capital

"It seems to have started in equities last week. Given that positions on carry trades are very large, it could continue for some time... (or) it's like trying to catch a falling knife."

By 1050 GMT the euro fell as low as 151.22 yen , its lowest since late November and down 1.8 percent on the day.

The euro saw its biggest weekly percentage losses against the yen last week since August 2003, having hit a record high near 160 in February.

The dollar hit a three-month trough of 115.16 yen , before coming back to 115.27, down 1.3 percent on the day.

The yen hit a 21-year low in January on a real, inflation-adjusted traded weighted basis.

The single currency's big losses against the yen dragged it down half a percent to $1.3125 . The euro was unmoved by below-consensus euro zone service sector data.

Sterling took the biggest hit from carry unwinding, dropping more than 2 percent at one point to 221.51 yen -- last seen in mid-October.

The pound had been one of the biggest beneficiaries of the carry trade financed by the yen or Swiss franc.

But unwinding of short-yen positions has seen sterling shed around 8 percent from a 14-year high struck in January. Sterling also fell 1 percent to $1.9216 .


One-month dollar/yen implied volatility hit 10.35 percent , its highest since June when similar risk aversion sent the yen higher. Rising volatility prompts investors to cut back carry trades as the fluctuation in currencies can easily wipe out gains from yield differentials.

Analysts also said the yen's fresh move higher was partly triggered by the Chicago Mercantile Exchange's move last week to lift the minimum amount of money required to trade yen futures due to higher market volatility.

The CME lifted margin amounts by 25 percent for futures in the yen against the Australian dollar, the euro and sterling.

Analysts say the carry unwind has further to run as investors around the world reprice risks.

"The current re-pricing of risk is a phenomenon that will be with us - on and off - for much of the first half of 2007," HBOS Treasury markets in a note to clients.

"At its root is the dawning realisation that the probability of a continuation of the goldilocks scenario of strong growth and low inflation is low."

The bank added the trade-off between growth and inflation is much less favourable than at any point since the early 1990's.

Investors were on alert for possible comments on market conditions from Japanese finance minister Koji Omi later on Monday after his meeting with U.S. Treasury Secretary Henry Paulson in Tokyo.

"From a G7 perspective the move lower in euro/yen would be very welcome -- the question from the Ministry of Finance point of view is when does this become a disorderly move," said Kamal Sharma, currency strategist at Bank of America.

Investors were also awaiting speeches from Federal Reserve officials later in the day. Further ahead, the focus is on U.S. data including the February jobs report, to see if the figures provide any more reason to expect the Fed to cut interest rates, which could spark more dollar selling.

© Reuters 2007. 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