Key mark for Euro passed

By GG Analyst in Reviews 0 Comment

Europe

EURUSD

The important support for EURUSD at 1.05 was broken this week. This happened due to more optimistic than expected forecasts for economy and further course of interest rate’s hike. In September, markets and the Fed Reserve had something we may call consensus for expectations of two hikes in 2017, but in December more hawks appeared, and eventually they await for three hikes. This goes along with Trump’s promises to boost economy growth by means of taxes and public expenses. Since the real divergence between monetary policies of ECB and the Federal Reserve became a driver of EURUSD drop below 1.05, the more…

ECB has managed to reverse Euro downwards

By GG Analyst in Reviews 0 Comment

Euro

EURUSD

Last week opening was bad for EURUSD. Prime Minister of Italy has lost the referendum with a big gap. This resulted in pair’s fall to 1.05 level, but bulls managed to the keep the attack: EURUSD closed the day around 1.0760, with the intraday range around three patterns. Further, the pair was developing correction bounce during a week. Eventually, by ECB rate decision on Thursday, EURUSD had already two attempts to climb above 1.08. The same as a year ago, markets were waiting for details about further development from December ECB meeting. They did not have instant changes, but the markets more…

Dollar won back its part, Euro’s turn now

By GG Analyst in Reviews 0 Comment

EURUSD

Dollar was defending itself last week. Growth impulse after Trump’s rally was losing its power. The potential for dollar growth on the higher chances for the rate raising by the Fed Reserve won back (they are sure 100% about December rate increase) even with the gap, since they include 50% chances for two more raising in 2017. Meanwhile, stock markets continued to grow on the expectations of public spending increase, and did not consider the policy tightening as a threat for upwards movement. On Thursday and Friday the market gave a formal reason for dollar selling, which used dollar bears quite more…

Carry –trade is ruling the markets again

By GG Analyst in Reviews 0 Comment

Carry-trade

EURUSD

The pair is trying desperately to keep stable after it reached the important support level, which managed to withstand multiple bears’ attacks in 2015. However, on Wednesday, which had the full American session on this week, the bears made attempt to press in the important levels. Eventually, EURUSD decreased till 1.0510. The important thing is that the main driver of pair’s weakening was escaping to risky assets. Due to the above, the common currency was losing its attractiveness, as during last years. On Thursday and Friday the trades were not so active, so the markets were fixing profits from the beginning more…

Dollar is keeping rising on Forex

By GG Analyst in Reviews 0 Comment

USD

EURUSD

EURUSD is losing 2.5 figures the second week in a row. The US dollar was continuously growing against currency basket during 10 last days. It’s hard to find a period when the US dollar was growing so constantly, though the movement scope is rather far from the historical maximum swing. But such movements hide inside the biggest danger. The USD demand, during 2008 crisis, was caused by the liquidity issues, so it was solved comparably simple through supply of the USD liquidity. And now, the dollar is increasing due to the fundamental reasons – on the expectations of tougher monetary policy more…