The flat end of the week

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency would have had a hard time, if the German PMI hadn’t come to the rescue. The preliminary French PMI, published half an hour before, intensified pressure on the euro due to the decrease in the Manufacturing and Services PMIs. The former fell from 48.8 right down to 47.3 against the expected 48.6 and the latter – from 48.4 to 48.1 against the expected 48.2. The French economy keeps slowing down. The Composite PMI in the meantime dipped down to 48.0, which hasn’t been seen since last February. The pair managed to stay above 1.26 (the low was more…

1.2600 as a crucial correction level

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is still being attacked by bears. These traders have decided to take advantage of the moment and sell the euro at a higher price due to the previous correction. Besides, as has already been mentioned, in the periods of such surface lull, trading volumes are quite handsome, which enables players to store liquidity for a serious attack. Unfortunately, it is hard to understand which stance big players will take. Now it seems that the euro’s correction is coming to its end and the pair will soon reach fresh highs since the beginning of October (below 1.2500). Now trading more…

EUR suffers losses in the period of the market appreciation

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency fell under pressure after Reuters’ message that the ECB could start purchasing corporate bonds already in December. That news deprived the euro of about 0.7% and pushed EURUSD down to 1.2700. Formally this level held out , but it seems to be just a question of few days, when the single currency will continue its downward movement. Investment banks have already hastened to announce the end of the correction and the beginning of a new downward trend with the targets at 1.25 and in the longer term at 1.20. Weidmann, Bundesbank President and the main oppositionist of more…

China supports optimism of the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the ECB purchased French BTFs, this way starting QE in its region. Of course, yesterday’s fluctuations couldn’t put any significant impact on the market, but they were quite able to change the mood of its participants. It didn’t happen though. Traders were purchasing the single currency. They keep doing it now as well, hoping that these measures will contribute to quicker recovery of the eurozone. Since the beginning of 2013 the ECB’s balance has been shrinking as banks were allowed to return loans, issued earlier within the LTRO programme. These returns have cut the CB balance by about a third, more…

Will FOMC revise its plan to terminate QE in October?

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency keeps drifting near 1.2750, having no desire to fall and no strength to grow. The six-week decline of stock indices arouses more and more concern among the Fed’s officials. Though they don’t assert that this behaviour of the markets will make FOMC revise its plan to end QE in October, they still promise to consider it in the coming days. Rosengren, President of the Federal Reserve Bank of Boston, said that QE will be finished in October if nothing dramatic occurs. So now market participants are trying to make out how dramatic the recent sale, which lasted for more…