Why the ECB failed to put pressure on the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency frayed traders’ nerves a lot yesterday. Its initial decline from 1.3540 to 1.3501 for about an hour was recouped by the reverse growth and closing at 1.3660.The ECB cut all the three rates, making the bank deposit rate negative. So what aroused purchasing of the single currency again? First of all, the demand for risky assets, provoked by the rate decrease. After all, it often supports the single currency. Then it is a correction of the forward guidance, which now states that the rates won’t be reduced again. It was expected that the ECB would also take other more…

The narrow channels of Forex

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s attempt of the euro to come off  the four-month lows proved to be futile. The euro/dollar has been plying between 1.3585 and 1.36550 for over a week. The certain dissatisfaction with the US statistics, due to the poor employment data from ADP, could strengthen the single currency only for a while yesterday, taking it to the upper bound of the range. As reported by that company, the US private firms in May increased the number of jobs by 179K instead of the expected 217. The rates for the preceding two months were also revised down. The foreign trade data also more…

EUR is trying to grow against the news

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we again saw how the market was ‘selling’ facts. The so-much-awaited report on consumer prices in the eurozone showed slowdown. The annual inflation is again at the lows of March (0.5%). Those, in their turn, are the lowest in five years. Before the release of the data the euro/dollar had  been pushed down and the pair again had hit the local lows at 1.3585. However, the released statistics stirred short covering. It was supported afterwards. As a result, the euro grew to 1.3646. Since no input data have changed and the ECB is still expected to ease the policy, yesterday’s more…

EUR keeps crawling down

By GG Analyst in Reviews 0 Comment

EUR/USD

The European session began with the fresh pressure on the single currency. Before the release of Final Manufacturing PMI the euro had been pushed from 1.3640 down to 1.3590. Most likely, it had been connected with the earlier reaction of the market to the inflation statistics in the German lands, which at the end of the day was to form into the overall picture. Then it turned out that the actual data failed to meet the forecasts, so the euro’s decline was accounted for by fundamental factors. The EU Services PMI in May was revised down to 52.2 instead of the more…

USD again has MAY in its favour

By GG Analyst in Reviews 0 Comment

EUR/USD

Thursday and Friday ensured a short break for the single currency. Despite the traditionally increased demand for dollars at the end of the month, most players preferred to take profits, giving other currencies a chance to recoup themselves. May is customarily a favourable month for the dollar, and this year hasn’t been an exception. In the first days of May the currency dropped from almost 1.400 down to 1.3585 on the speculations around the coming rate cut. The most important thing, in our opinion, was decline below the 200-day MA. Going below this level is able to cause serious strengthening of more…