FOREX NEWS -Dollar dips on news of U.S. duties on Chinese paper

User Name: Password: Register - Lost password?

Forex News Blog
Back to The Headlines

Friday March 30, 2007 - 20:48:28 GMT
Reuters - www.reuters.com

Share This Story: | | Email
FOREX NEWS -Dollar dips on news of U.S. duties on Chinese paper
FOREX-Dollar dips on news of U.S. duties on Chinese paper
Fri Mar 30, 2007 4:21pm ET148

(Recasts, updates prices)

NEW YORK, March 30 (Reuters) - The dollar declined on Friday after the U.S. government said it will impose duties on imports of coated paper from China, raising fears of protectionism between the two economic superpowers.

While traders and investors debated whether the news was the opening salvo in a trade war, its impact on foreign exchange markets was immediate.

"The impact in the market has been to see the dollar get pummeled as dollar longs have been forced to bail out on the idea of trade protectionism ultimately undermining the U.S. economy," said Brian Dolan, director of foreign exchange research at Forex.com in Bedminster, New Jersey.

"This is still a developing story and it could turn even uglier if the tariffs are only on one product category."

It marks the first time the United States is applying duties to subsidized goods from non-market economies, the Commerce Department said.

The dollar fell 0.2 percent against the yen to 117.84 yen . The euro rose 0.2 percent against the dollar to $1.3356.

"The news about the tariffs on China is definitely taking the dollar down," said David Watt, a senior currency strategist at RBC Capital Markets in Toronto.

"It doesn't seem to be the best way to handle the issue. First, the U.S. still needs a lot of investment from abroad, especially from Asia, and it's not clear what type of impact such measures will end up having on consumers and on the U.S. economy," Watt said.

A trade war, with duties imposed by both sides, would hurt demand for U.S. exports by making them more costly in foreign markets, slowing U.S. economic growth. It would also make imports to the United States more expensive, adding to inflation pressures.

It could also prompt China to diversify some of its foreign exchange reserves out of the U.S. dollar. China had more than a trillion dollars in foreign exchange reserves at the end of 2006, the world's largest foreign exchange holdings. Analysts estimate about 70 percent of that amount is denominated in dollars.

Around the same time the China headlines reached investors, the dollar was hurt also by rumors that Washington had advised citizens in Bahrain to leave. That impact faded, however, when the White House said it was unaware of any such advisory.

The market's reaction showed how sensitive investors were to any news that could impact a U.S. economy already teetering on the brink of recession, said Michael Woolfolk, senior currency strategist at Bank of New York.

"Any escalation of tensions is one step closer to war and higher oil prices," he said.

Though oil closed down slightly on Friday, crude prices had climbed before the Bahrain rumor as the dispute between Iran and Britain over captured Royal Navy personnel showed no signs of a quick resolution. The UK and Iran tensions are on top of moves by the United States and other Western countries to pressure Iran into giving up its nuclear enrichment program.

The rhetoric with Iran on both issues has investors concerned about the impact of any rescue mission or large-scale attack on oil markets and the spillover into the global economy.

The Swiss franc, a traditional safe-haven currency, benefited from Middle East concerns. Dollar/Swiss franc fell 0.2 percent to 1.2149 francs.

Earlier, the dollar had firmed on higher-than-expected U.S. core inflation data and a robust Midwest manufacturing survey. That backed the view the Federal Reserve would be in no rush to cut interest rates. For more details, click [nNYH000417].

The dollar showed little reaction to data showing U.S. consumer sentiment fell in March to its lowest in six months amid worries about inflation and slowing gains in income. [nN30240689]. (Reporting by Nick Olivari and Gertrude Chavez-Dreyfuss, editing by Leslie Adler; Reuters Messaging: [email protected], +1 646 223 6151))

© 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.

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 23 Apr 2018
A All Day- Flash PMIs
AA 14:00 US- Existing Homes Sales
Tue 24 Apr 2018
AA 01:30 AU- CPI
A 08:00 DE- IFO Survey
A 14:00 US- CB Confidence
A 14:00 US- New Homes Sales
Wed 25 Apr 2018
AA 14:30 US- EIA Crude
Thu 26 Apr 2018
AA 11:45 EZ- ECB Decision
A 12:30 US- Durable Goods
A 12:30 US- Weekly Jobless
Fri 27 Apr 2018
AA 03:00 JP- Bank of Japan
A 08:00 DE- Employment
A 08:30 GB- GDP
A 14:00 US- University of Michigan

John M. Bland, MBA
co-founding Partner, Global-View.com

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.

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

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.

Friday March 30, 2007 - 20:48:28 GMT Reuters - www.reuters.com