User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday August 31, 2004 - 21:30:54 GMT
DailyFX.com - www.dailyfx.com

Share This Story:
| | Email

Dollar Tumbles On Weaker Confidence and Chicago Manufacturing Activity

DailyFX Forex Fundamentals 08-31-04

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

·Dollar Tumbles On Weaker Confidence and Chicago Manufacturing Activity
·Only 2% Of UK Retailers Report Higher Sales According to CBI Survey
·Yen Pressured On Weaker Japanese Industrial Production and Sentiment Among Small Businesses

EURUSD

The euro finally managed to deliver an interesting trading day as fundamentals begin to shift. More specifically, the Eurozone delivered better than expected economic data, while data from the US continues to disappoint. In France, the number of people filing for unemployment benefits fell 10,000 during the month of July, bringing the unemployment rate down from 9.9% to 9.8%. This will certainly be positive for consumer consumption. The rebound in France, the second largest country in the Eurozone has been slightly more impressive than the rebound in Germany. Meanwhile, workers in Italy also enjoyed stronger than expected wages. The flash estimate of consumer price inflation in the Eurozone was unchanged at 2.3%, which was slightly softer than expectations. In the US on the other hand, both the Chicago Purchasing Manager’s Index and the Conference Board’s consumer confidence survey reported disappointing results. Manufacturing activity slowed from 64.7 to 57.3, while confidence declined for the first time since February. It will be interesting to see if the manufacturing sectors in Italy, France and Germany follow suit.

USDCHF

The dollar tumbled against the majors as the US economy reverts to the now all too familiar trend of slower growth. The expansion in Chicago’s manufacturing sector slowed in the month of August, just like it did in the Philadelphia region, which certainly has played a role in today’s falling US consumer confidence report. Last week, the dollar found some respite from the correction in oil prices, but with the percentage decline in oil prices decreasing, its translational benefits for the greenback is also evaporating. As we indicated yesterday, the market will began to secure its positioning ahead of the non-farm payrolls report after today’s US data. However, we do want to caution against any aggressive positioning before tomorrow’s manufacturing sector ISM report. Although the employment component of the Philly Fed survey decreased in August, the employment component of the Chicago PMI survey increased from 45.6 to 51.1, which means that companies are once again hiring instead of firing. We will look to the nationwide ISM report to see which trend is predominant, although the consensus is for a continuation of slower hiring. 150k is still an overly optimistic target and we do not see enough justification for such a strong rebound. We will elaborate further on our NFP views, as we get closer to the release of the report.

GBPUSD

The biggest talk in the market during the European trading session was the decoupling between the euro and the pound. However, the positive relationship resumed its normal course following the release of the US numbers. The initial decoupling occurred because of the discrepancy between the data released from the UK and Europe this morning. As mentioned in our euro commentary, today’s data was euro positive. In contrast, the data from the UK confirms the Bank of England’s successful efforts in slowing the housing market and the general economy. Net mortgage lending fell from an upwardly revised GBP9.3 billion to GBP8.6 billion. Although net consumer credit beat expectations, the amount of credit extended is a contraction from the previous month. After five rate hikes, prospective homeowners are finally slowing house purchases. Meanwhile, the CBI retail sales survey fell from +24 to +2 in August, which means that only 2% of retailers surveyed reported rising sales this month. The CBI attributed the decrease to poor weather, but this is the lowest level we have seen in the index since March 2003.

USDJPY

Although Japanese growth is still impressive, we are beginning to see signs of slowing. Given the concerted efforts by the Chinese government to slow their economy and the damaging effects of higher oil prices, it is reasonable to see this slowing spillover onto Japan’s economy. Industrial production was flat in the month of July, after falling –1.3% in June. The market had actually expected activity in the manufacturing sector to rebound by 1.0%. Earnings decreased –0.4% in the same month, bringing the annualized rate down to 4.5%. Small business confidence dipped below 50 to 49.9, indicating that a larger number of small corporations are pessimistic rather than optimistic due to rising inventories and falling profits. However, despite the weaker data, we caution against joining the yen bear bandwagon prematurely. Although the industrial production report was weak, the government is optimistic and indicates that demand in the automobile and electronics sectors should firm in the coming months. Also, not all data released was weak. Construction orders increased for the second consecutive month while housing starts increased for the first time in two months.

 

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