User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday November 9, 2007 - 12:31:31 GMT
Reuters - www.reuters.com

Share This Story:
| | Email

FOREX NEWS-Dollar dives as credit woes fuel rate cut prospects

 
Fri Nov 9, 2007 7:21am EST

(Recasts, changes byline, updates prices, adds quotes)

By Simon Falush

LONDON, Nov 9 (Reuters) - The dollar slumped to 1-1/2 year lows against the yen, as investors sold the U.S. currency in favour of safe haven assets in the wake of concerns about the health of the financial sector and expectations of U.S. rate cuts.

The embattled dollar also plunged to new record lows versus the euro and a basket of currencies, on Friday as fears grew that more U.S. financial firms will be hit by credit market turmoil, while high yielding carry currencies fell.

The Australian and New Zealand dollars fell by more than a percent versus the greenback as investors, rattled by concerns about the health of the financial sector, exited carry trades where they borrow low yielding currencies like the yen to fund purchases of higher yielding assets.

Such worries came to the fore again after ratings agency Standard & Poor's said on Thursday that a collateralised debt obligation (CDO) managed by State Street Global Advisors may have started selling assets. [ID:nT14586].

A downbeat economic forecast from Federal Reserve Chairman Ben Bernanke on Thursday cemented market views that the Fed will cut rates more, further eroding the greenback's yield appeal.

This contrasts with continued hawkish rhetoric from the European Central Bank -- despite its warnings on "brutal" FX moves -- and the Bank of England's decision not to cut yet.

"There is a flight to quality as risk aversion has come back, with write-downs in the U.S. financial sector coming in more than expected," said Antje Praefcke, currency strategist at Commerzbank Corporates and Markets in Frankfurt.

"The market is looking for reasons to sell the dollar, which there are, as Fed cut speculation firms."

By 1127 GMT, the dollar was down 1.2 percent versus the yen at 111.34 yen <JPY=>, having touched 110.99, its lowest level since mid-2006.

The euro hit a peak of $1.4752, its highest level since inception according to Reuters data, before trimming gains to stand at $1.4672 <EUR=>.

It is now up over 11 percent since the start of the year and has breached levels equivalent to record highs in the Deutschemark/dollar exchange rate.

Sterling retreated from earlier 26-year high at $2.1161 <GBP=> after shares in Barclays fell as much as 9 percent on market talk of big credit market losses at Britain's third largest bank [ID:nL09723643].

The dollar extended its overnight slide against the Swiss franc, falling to 1.1190 francs <CHF=>, the lowest since 1995.

Reflecting rise in risk aversion, the euro was on track for its biggest one-week percentage drop versus the franc since September 2001 <EURCHF=>.

European equity markets fell around 1 percent (.FTEU3: Quote, Profile, Research), while implied one-week volatility in euro/dollar spiked up to 10.35 percent, its highest in 2-1/2 years.

GREENBACK DIVES

The dollar index (.DXY: Quote, Profile, Research) which measures its value against a basket of six major currencies, fell as low as 74.978, its lowest ever level.

Bernanke told U.S. lawmakers that the Fed expected economic growth to slow noticeably in the fourth quarter of 2007 and the first half of 2008, citing credit industry turmoil and the likelihood that the housing sector slump deepens.

That contrasted with ECB President Jean-Claude Trichet's vow on Thursday to keep a grip on inflation, leaving a chance that the ECB may raise interest rates further from current 4 percent.

He also said that "brutal" currency moves are not welcome.

Friday also features the release of U.S. September trade data as well as the Reuters/Univeristy of Michigan consumer confidence index for November.

"With Bernanke's testimony coming out officially with the whiff of stagflation - today's focus on University of Michigan index and import prices, we expect further pressure on the dollar as Asian Central Banks are unlikely to be able to react swiftly enough," Dresdner Kleinwort said in a research note.

During Thursday's New York trading, U.S. short-term interest rate futures showed an 94 percent implied chance the Fed will trim benchmark rates by a quarter point in December, up from 70 percent late on Wednesday.

At one point, the implied probability of a cut reached 100 percent after Bernanke's testimony. (writing by Simon Falush; Editing by Ron Askew)

© 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.

 

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 18 December 2017

Register for the Amazing Trader

1.

Amazing Trader EVENT RISK Calendar:

Mon 18 Dec
10:00 EZ- final HICP
Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account
Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude
Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP
Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes
Mon 25 Dec
00:00 Christmas Holidays

Forex Trading Outlook


Potential Trading Opportunities

  • POTENTIAL PRICE RISK: Medium Mon--10:00 GMT-- EZ- final November HICP. flash data are rarely changed.


  • POTENTIAL PRICE RISK: HIGH- Medium Tue --09:00 GMT-- DE- IFO Survey. Key report but usually not a market-mover
  • POTENTIAL PRICE RISK: HIGH- Medium- Tue --13:30 GMT-- US- Housing Starts and Permits. Leading indicators of activity

  • POTENTIAL PRICE RISK: HIGH-Medium- Wed --15:00-- US- Existing Homes Sales. Top Housing statistic
  • POTENTIAL PRICE RISK: Medium- Wed --15:30-- US- EIA Crude

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