User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday August 15, 2007 - 21:19:31 GMT

Share This Story:
| | Email

Forex - Japanese Yen Continues to Outperform All of the Majors

DailyFX Fundamentals 08-15-07
By Kathy  Lien, Chief Strategist of

- Carry Trades Continue to Sell Off as Dow Tumbles Below 13k on Red Letter Wednesday
- Japanese Yen Continues to Outperform All of the Majors
- Sharp Losses Continue for the Australian, New Zealand and Canadian Dollars

Carry Trades Continue to Sell Off as Dow Tumbles Below 13k on Red Letter Wednesday

Big moves in the US stock markets are driving major losses in carry trades.  Most of the Japanese Yen crosses are down between 1 to 3 percent on the day with the losses in the carry basket that we are monitoring, which consists of the three highest yielding currencies against the three lowest yielding currencies quickly closing in on the third biggest drawdown since the inception of the Euro.  This was back in May 2004, when the basket fell by 7.6 percent.  With the exception of the Japanese Yen, the dollar is up across the board as investors continued to bail out of risky assets and move back to cash.  Today is known as the “red letter day,” which is the last opportunity that investors have to request withdrawals by the end of September from hedge funds, which usually subscribe to the standard 45 day redemption notice.  Given the recent volatility in the financial markets, many investors will be looking to cut their losses and run. In order to meet these withdrawals, hedge funds will need to raise cash.  With many lenders refusing to lend, the only way to raise cash would be through further asset liquidation. Large scale redemptions could continue to weigh on the equity and bond markets in the weeks to come.  We are already seeing the credit crunch have a wider impact on the financial sector.  Deutsche Bank and UBS were both downgraded by rival brokers.  Countrywide Financial was downgraded to a sell by Merrill Lynch who added salt to the wound by warning that Countrywide could face bankruptcy.  After not injecting liquidity into the financial system on Tuesday, the Fed added another $7 billion of temporary reserves today.  Meanwhile a lot of US economic data were released but that seemed to matter little to a market that has already priced in an interest rate cut on September 18th. Consumer price growth and industrial production were right in line with expectations, foreign purchases of US securities was mixed, Empire State was very hot, but the NAHB housing market index plunged to 16 year lows.  If the Federal Reserve needs an excuse to cut interest rates, they probably already have one.  More housing market data and the Philly Fed survey are due for release tomorrow.  The market will probably be focusing more on housing starts and building permits than the manufacturing sector index.  

Japanese Yen Continues to Outperform All of the Majors

After being brutally beaten down over the past few years, the Japanese Yen has returned with a vengeance.  Like the Standard and Poor’s 500 Index, most of the Yen crosses have now erased all of its year to date gains.  The losses today have been extensive with AUD/JPY and NZD/JPY both down over 2 percent.  Yesterday, we indicated that retail traders were still going long, but the new lows reached today have stopped many of those traders out.  Whether or not carry trades continue to sell off will be partially dependent upon whether the Nikkei breaks lower tonight as well.  There is no major economic data due out from Japan this evening.  The turmoil in the markets has pushed the chances of an August 23 rate hike by the Bank of Japan from 37 percent yesterday down to 20 percent today.  It will be interesting to see if the Bank of Japan continues to add liquidity to the system as well. Finance Minister Omi said last night that the worst of the home loan crisis may be over.  

Sharp Losses Continue for the Australian, New Zealand and Canadian Dollars

Next to the Japanese Yen crosses, the biggest losers were the Australian, New Zealand and Canadian dollars.  More Australian hedge funds are being hit by the US subprime crisis.  Basis Capital told investors today that one of its hedge funds have lost over 80 percent of its value.  As of March, the fund had a $1 billion in holdings, which means that now they probably now have less than $200 million.  More skeletons will probably becoming out of the closet as the hedge funds in Australia prove to be up to their necks in risk.  The New Zealand dollar is tracking the Australian dollar lower, having sold off aggressively for the past five trading days.  The Canadian dollar also continued lower on the back of continued weakness in economic data.  We could see a bounce in the CAD however after Coventree announced that they have found buyers for their asset backed commercial paper, which suggests that they may lift their funding freeze.  The Bank of Canada also injected further liquidity to calm the markets.  

British Pound Slips as Bank of England Moves Further Away from Raising Rates

The British pound dropped for the third straight day in a row after the minutes from the latest Bank of England meeting revealed a unanimous vote to keep interest rates unchanged.  According to the minutes “"Most members emphasized that they had no firm view on whether rates needed to rise further."  Rate hike expectations have already been downgraded after the surprisingly soft consumer price report released yesterday.  The lack of support for a rate hike at the last meeting pushes the central bank even further away from raising interest rates to six percent by the end of the year.  Do not be mistaken however as the market has not given up on hope for another rate hike, especially after Bank of England member Sentence stressed that one consumer price report will not mean much to the BoE.   Meanwhile UK employment data was slightly worse than expected with average earnings including bonuses declining in the month of June and jobless claims falling less than expected.

Dollar Rally Takes Euro to Fresh Monthly Lows

Flight to safety continues to drive the US dollar higher against the Euro.  Over the past five trading days, the Euro has fallen close to 400 points.  It appears that the European Central Bank’s attempts to calm the markets have done little to ease market fears as bad news continues to hit the headlines.  Yesterday, ECB President Trichet said that conditions are normalizing which explains why they did not inject liquidity into the financial markets this morning.  If another piece of bad news hits the wires tomorrow, they may have to add more liquidity.


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

Mon 23 July 2018
A 14:00 US- Existing Homes Sales
Tue 24 July 2018
AFlash PMIs
Wed 25 July 2018
A 08:00 DE- IFO Survey
A 14:00 US- New Homes Sales
A 14:30 US- EIA Crude
Thu 26 July 2018
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
A 12:30 US- Durable Goods
Fri 27 July 2018
AA 12:30 US- GDP
A 14:00 US- Final University of Michigan

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