FOREX NEWS-Dollar retreats as US stock market falls
Mon Oct 15, 2007 4:39pm EDT
(Updates prices, adds comments)
By Gertrude Chavez-Dreyfuss
NEW YORK, Oct 15 (Reuters) - The dollar eased against the yen and euro on Monday, weighed down by weakness in the U.S. stock market after comments by a top Citigroup official raised anew concerns about global credit.
U.S. bond prices rose, boosted by safe-haven bids, while equities posted sharp losses, led by financial services, on Citigroup's gloomier economic outlook.
Citigroup Inc (C.N: Quote, Profile, Research) Chief Financial Officer Gary Crittenden on Monday said he was "not optimistic" that markets for collateralized debt obligations and other fixed-income products, hammered by this summer's credit crunch, will soon recover. See [ID:nN15323179].
"The stock market is definitely having an impact on currencies," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.
"The relationship between equity markets and the yen crosses has come back in full force and that's the primary driver today. It looks like Citigroup's comments that the credit crisis is intensifying has precipitated the stock market decline," Dolan said.
The Dow Jones industrial average (.DJI: Quote, Profile, Research) was down about 0.7 percent at the end of the trading day.
Citigroup Inc and other global banks earlier said they were pooling money to prevent investment funds from having to dump assets into the market. The news initially lifted stocks, but shares later fell as the move reawakened concerns about the fallout from the credit squeeze. For details, see [ID:nN15323179].
The yen, which tends to fall as risk appetite increases as investors borrow cheap yen to buy higher-yielding assets, fell in response to firmer equities earlier, and the dollar hit a peak of 117.94 yen <JPY=>, its highest since mid-August. But the dollar slipped against the yen as stocks dropped to trade at 117.26 yen, down 0.3 percent on the day.
Also weighing on the dollar against the yen was the surge in oil prices, which jumped to an all-time high above $86 per barrel (CLc1: Quote, Profile, Research) on Monday. Oil prices were propelled by strong demand from booming commodity markets.
The euro rose 0.2 percent to $1.4202 <EUR=>, not far from its record high above $1.4280 set two weeks ago.
Against the yen, the European currency traded as high as 167.72 yen, according to Reuters data <EURJPY=>, its highest level since July 23. It last traded at 166.57 yen, little changed on the day.
The dollar weakened against a basket of six major currencies (.DXY: Quote, Profile, Research), trading 0.1 percent lower at 78.087.
With no first-tier economic data due on Monday, investors were focused on a speech by Federal Reserve Chairman Ben Bernanke on the economic outlook scheduled for 7 p.m. (2300 GMT) for a hint on the outlook for U.S. interest rate cuts.
Avery Shenfeld, senior economist at CIBC World Markets in Toronto, said he expects Bernanke to "justify preemptive August rate cuts." But, like Fed Vice Chairman Donald Kohn in comments last week, the Fed chief could cast doubt on follow-up easing moves, said Shenfeld, adding that such comments would be supportive for the dollar.
Market players are also cautious about making active bets on currencies ahead of the G7 meeting later this week, with recent volatile foreign exchange moves expected to be a major topic for discussion.
European Central Bank President Jean-Claude Trichet told a Russian newspaper, which was published on Monday, that the euro's exchange rate should reflect fundamentals and excessive currency moves are bad for growth. See [ID:nL15646801].
Data on U.S. net capital flows for August are also due on Tuesday. Although the report covers numbers from two months ago, analysts are still keenly awaiting the data and a negative outcome would further pressure the dollar.
"If the U.S. (Treasury flows) data shows another black hole in U.S. balance of payments funding then the dollar could be vulnerable to further attack -- especially after the low capital inflows in July," said Bear Stearns in a research note.
Reuters journalists are subject to the Reuters Editorial Handbook which requires fair presentation and disclosure of relevant interests.
Forex Trading News
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
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.
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.com
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.
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.
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.
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.
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 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.
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 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.
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.
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.