USD’s rally to pause at the end of the month

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock market feels more and more confident at a new level. S&P 500 has exceeded 2000 and the global asset market reached the capitalization of 66trln, as calculated by Bloomberg. Before the global financial crisis appreciation of the stock markets often turned out to be USD’s decline and strengthening of the currencies in the developing countries, which also affected EUR and the pound. Though the pound in theory can follow this very tendency against growing chances of the rate increase earlier than in the USA (see below), the euro’s recent weakness has been quite reasonable. And don’t say that more…

EUR is kept off the levels above 1.32

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency didn’t manage to recover yesterday. EURUSD was below 1.32 almost all day long yesterday, though the major rivals of the single currency felt much better. Besides, S&P 500 crossed the level of 2000, which was a significant moment for the markets. The index didn’t move far from this level and went on the defensive right after hitting the level. As we mentioned yesterday, the initial weakness of the euro was maintained by the divergence between the US and EU monetary policies, once again emphasized by the comments of the Fed’s and ECB’s governors in Jackson Hole. But further more…

USD’s across-the-board rally

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency keeps falling against the dollar. The governors of the world’s global CBs in their speeches only emphasized the divergence between the US and EU policies, whereas Madame Yellen was less mild about the monetary policy prospects mainly due to the rather favourable employment statistics in the recent months. Of course, here we should take into account that the strongest data were on the employment/unemployment rate, while the earnings growth and participation rate were obviously far from perfect. But this way or another the EU affairs are much worse. If the US unemployment shrank by 3.8%, the EU one more…

Speculators seek to sell USD prior to Yellen’s speech

By GG Analyst in Reviews 0 Comment

EUR/USD

Speeches of Janet Yellen, Federal Reserve Chairwoman, are often full of cautious comments and are generally treated by the markets as rather dovish. Being just a certified candidate for chair of the Fed, she already maintained a softer stance than Ben Bernanke, so the markets even staked that her advent would help to stop QE reduction. This year she has aroused a fresh tide of anxiety regarding the policy toughening when pointing out that unemployment below 6.5% wouldn’t be a reason to consider raising the rates. Instead the Fed  began to focus on a wide range of employment indicators. Thus, Janet more…

USD grows with money coming back to the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency continued its impressive descent. Earlier we mentioned that it was walking a tightrope close to 1.33. This morning the pair has fallen to 1.3240, which is the lowest level since last September. The selling impulse strengthened due to the release of FOMC’s meeting minutes at the end of July. They focused on advantages of earlier rate increase. They consist in the fact that later a smaller rate increase will be needed and it means that there won’t be a necessity to cool the economy. The smooth monetary policy is the major priority of the world’s CBs. In more…