User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday July 10, 2007 - 21:16:35 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS-Dollar falls to record low vs euro on subprime scare

FOREX-Dollar falls to record low vs euro on subprime scare
Tue Jul 10, 2007 5:04PM EDT

(Updates prices, adds comment, changes byline)

By Kevin Plumberg

NEW YORK, July 10 (Reuters) - The dollar fell to a record low against the euro and a 26-year low against sterling on Tuesday as investors feared that the deteriorating U.S. subprime mortgage market could eventually slow the economy.

The dollar's broad decline was relentless late into the session and was steepest against the yen and Swiss franc, low-yielding currencies that benefited as investors cut back on their exposure to riskier, higher-yielding assets.

The sell-off was sparked by a report from credit rating agency Standard & Poor's that it may downgrade $12.1 billion in subprime-related debt. For details, see [ID:nN10336254]. Subprime loans are extended to borrowers with poor credit.

"Despite being a traditional 'safe haven' currency, the dollar is unlikely to benefit ... given that the U.S. is the locus of problems," said CitiFX analysts in a note. "In turn, the Swiss franc and the yen are due to strengthen disproportionately as a result," they said.

The euro rose as high as $1.3742 against the dollar, a record high, according to electronic trading platform EBS. It ended the day near the highs, at $1.3729, up 0.7 percent on the day.

Sterling climbed to around $2.0274 against the dollar, the highest in 26 years, according to Reuters data.

Against the yen, the dollar fell to a one-month low around 121.88 , down more than 1 percent for its biggest decline since mid-March. The dollar weakened 1.1 percent to a two-month low of 1.2028 Swiss francs , the largest fall since November 2006.

Against a basket of major currencies, the dollar fell to a two-and-half-year low of 80.815 (.DXY: Quote, Profile, Research).

"The market is seen in the process of forming a potentially significant bottom (in the dollar index) with as much as nine to 12 months of gains and 12-point rise after, but there are still no firm signs that this period of bottoming is complete," said David Solin, partner with Foreign Exchange Analytics.

The subprime news pushed U.S. stocks and Treasury yields sharply lower.

Implied volatility of major currencies along with stock option volatility ticked up, contributing to the pullback in risk-taking among investors.


The dollar was particularly vulnerable to the re-emergence of subprime concerns, which have nagged on investors all year, since expectations have increased the Federal Reserve will keep interest rates steady this year while other central banks raise rates.

Widespread housing sector weakness has the potential to drag on economic growth and raise expectations for an interest rate cut by the Fed.

"This concern offsets the recent string of economic data that had shown the U.S. economy had finished the second quarter with good momentum," said Marc Chandler, head of global currency strategy with Brown Brothers Harriman.

Benchmark U.S. rates have held at 5.25 percent for more than a year, reducing the dollar's appeal to global investors when other major central banks such as the European Central Bank are raising rates.

Furthermore, the spread of the implied U.S. interest rate in December 2008 over the euro zone's narrowed to 49 basis points, down sharply from around 70 basis points a month ago.

The ECB is expected to hike rates again in September to 4.25 percent, with some economists betting on a follow-up quarter-point hike to 4.5 percent by the end of the year.

The Bank of Canada, meanwhile, raised interest rates to 4.50 percent earlier on Tuesday. The U.S. dollar rose 0.2 percent against the Canadian dollar to C$1.0514 , benefiting modestly from the Canadian central bank's less hawkish monetary policy statement. "It's still an interest rate differential game," said Gregory Salvaggio, a vice president for trading at Tempus Consulting in Washington.

© Reuters 2006. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Reuters journalists are subject to the Reuters Editorial Handbook which requires fair presentation and disclosure of relevant interests.


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