User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday March 9, 2007 - 21:33:19 GMT
DailyFX.com - www.dailyfx.com

Share This Story:
| | Email

US Dollar – Another Shakeup in Sub-Prime Sector Takes the Wind out of Payrolls

DailyFX Fundamentals 03-09-07

By Kathy Lien, Chief Strategist of DailyFX.com

- US Dollar – Another Shakeup in Sub-Prime Sector Takes the Wind out of Payrolls
- Japanese Yen Extends Corrections, Signaling the Possible Return of Carry Traders
- Canadian Dollar Soars on Stronger Labor Market and Trade Data

US Dollar – Thanks to a stronger than expected non-farm payrolls report, the US dollar staged an impressive end of week rebound. Even though job growth was the weakest in 2 years, the health of the labor market was better than what many traders were anticipating. Having sent the CME derivatives down to 75.5k this morning, the market was leaning more towards a weaker report. However revisions remained the name of the game as January payrolls were notched up by 37k while average hourly earnings increased by a more than expected 0.4 percent. Average weekly hours dropped slightly but that may be related to the near record low temperatures in the month of February. In addition to the sharp upward revision the prior month, 505k people were not included in the household survey because of the weather; this the largest exclusion in 10 years and indicates that we could either see a strong rebound in March or a sharp revision to the February number. Both the stronger revision and the higher wage pressures will prompt the Federal Reserve to think twice about cutting interest rates in August. Before getting too dollar bullish however, the problems in the sub-prime lending sector continues to grow. We already know that New Century, the country’s second largest sub-prime lender is already at the brink of bankruptcy. However today, WMC Mortgage, the 9th largest sub-prime lender also announced that they will be closing 4 out of their 9 branches as well as cutting 20 percent of their workforce. The Fed is watching the sub-prime lending sector very closely as more investors become affected by the shakeouts in the sector. They also realize that this has significant implications for the housing market as a whole. Tighter lending rules could shave 200k home buyers from the market. Next week, we have a busy US calendar that starts off with retail sales on Tuesday. Yesterday, Wal-Mart blamed their weaker sales on the wintry weather. This suggests that next week's retail sales numbers and the US dollar could also face downside risk. The trade deficit also narrowed in the month of January, which is sure to have contributed to the overall dollar strength.

Euro – The Euro slipped as traders adjusted their monetary policy outlooks for the ECB and Federal Reserve. ECB President Trichet basically told traders on Thursday not to expect an interest rate hike in April while today’s US data has some traders pricing in a later rate cut from the Federal Reserve. Eurozone data this morning provided little direction with stronger German data countered by weaker French data. The wholesale price index for the month of February and the trade balance for the month of January both came out much stronger than expected, but the French industrial production and trade balance figures deteriorated. Looking ahead, although next week’s Euro strength and weakness will most likely be determined by US data, there are a few notable releases on the Eurozone calendar. This includes the German ZEW survey, Eurozone CPI and the release of the ECB monthly bulletin for March. Even though the ECB is still on track to raise rates again some time this year, the economy could begin to feel the impact of the Value Added Tax increase in Germany which means that the ZEW survey runs the risk of surprising to the downside, especially as analysts are typically more pessimistic than businesses. Meanwhile Switzerland is scheduled to announce its quarterly monetary policy decision next week along with retail sales. The Swiss National Bank is expected to lift interest rates given the recent strength in the overall economy.

British Pound – Despite softer manufacturing data this morning, the British pound has strengthened against the US dollar, Euro and Japanese Yen. Industrial production increased by a less than expected 0.1 percent in the month of January while manufacturing production dropped by 0.2 percent. On balance, the British pound has not done little this week after having broken down the prior week. The economic calendar in the week ahead is more interesting which should deliver some pound driven flows. We are expecting producer prices, the trade balance, more reports on the state of house prices and labor market data. Overall, the UK economy is holding up well and we expect the reports to reflect that. We will have to wait until March 21st to have more light shed on the outlook for UK monetary policy.

Japanese Yen – The reversal in the Japanese Yen continued as the currency loses more ground against the majors. A rosier outlook for the US economy has encouraged some traders to jump right back into the carry trade. The NZD/JPY and CAD/JPY were the best performing currency pairs of the day, as hawkish comments from RBNZ Governor Bollard earlier this week has traders buying New Zealand dollars in hopes of higher yields. Overnight, the only piece of data on the calendar was January machinery orders which were stronger than expected. The stability in the equity markets should have central bankers from around the world including the Bank of Japan breathing a sigh of relief. If the stock markets continue to rebound, traders may be comfortable enough to return their focus to the BoJ’s rate tightening cycle. Looking ahead, we are expecting second quarter GDP, current account, Domestic CGPI, consumer confidence, industrial production and leading indicators next week. The Japanese economic calendar is busy which suggests that the market may continue to focus on the Yen.

Commodity Currencies (CAD, AUD, NZD) – The commodity currencies are all up strongly today thanks to a return of carry trade demand and firmer economic data. There were no Australian and New Zealand data released last night, but traders are most likely still reeling off of the hawkish comments from the RBNZ earlier this week. Canada on the other hand reported a firm rise in employment for the month of February and an unexpected increase in the trade surplus for the month of January. The Canadian economy has been performing very well and we are finally seeing that filter into loonie strength. In the week ahead, labor productivity, manufacturing shipments and capacity utilization are the only pieces of CAD data on the calendar. Australia will be reporting business confidence, labor market data and consumer inflation expectations. New Zealand has house prices, the Manpower survey and retail sales on the docket.

 

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 20 October 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

Fri 20 Oct
12:30 CA- Retail Sales & CPI
14:00 US- Existing Homes Sales


Tue 24 Oct
All Day flash PMIs
Wed 25 Oct
01:30 AU- CPI
08:00 DE- IFO Survey
08:30 GB- GDP
14:00 CA- BOC Decision
14:30 US- EIA Crude
Thu 26 Oct
11:45 EZ- ECB Decision
12:30 US- Weekly Jobless
14:00 US- Pending Homes Sales
Fri 27 Oct
12:30 US- GDP
14:00 US- final Univ of Michigan

Forex Trading Outlook


Potential Trading Opportunities


  • POTENTIAL PRICE RISK: High Fri-- 12:30 GMT CA- Retail Sales and CPI. Top economic indicators.


  • POTENTIAL PRICE RISK: HIGH Fri-- 14:00 GMT US- Existing Homes Sales. Top Housing statistic.



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