Yellen against USD

By GG Analyst in Reviews 0 Comment

EUR/USD

USD has been falling after Yellen’s words about ‘continuing commitment’ to economic support from Fed. It means that Fed’s governor remains dovish, just like at the end of the previous year. This softness anyway didn’t break the trend for tapering, set by another ultra-dove, Bernanke. In effect Yellen said that the threat is posed by deflation rather than inflation. In reaction to this comment EURUSD returned to 1.3840 during the Asian session. It is even possible that the growing energy independence of the USA is playing a crucial role here. The thing is that in the 2000s the global economic growth more…

Resistance to USD growth

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the US assets were again in demand. While stock exchanges were recouping the losses incurred at the end of the previous week, the US dollar was trying to partially offset the earlier losses. EURUSD fell down to 1.3790 yesterday, but soon it found buyers, who brought it back above 1.3800. Those market forces once again disabled taking control over the dollar despite the strong inflation data. CPI grew to 1.5% y/y against the supposed 1.4% and 1.1% a month ago. It is also remarkable that the core indicator, that with food and energy excluded, also returned to 1.7%, which was more…

In anticipation of a pullback

By GG Analyst in Reviews 0 Comment

EUR/USD

On Monday the single currency was under a moderate pressure, caused by Draghi’s promise to ease the policy not only in case of weak inflation, but also if the euro remains expensive. It’s quite logical as growth of the rate ensures inflation slowdown in the future and it happens with a certain lag, leaving space for maneuver. The most important thing is to use it in good time. Anyway, the euro remains under pressure. Governor of the Bank of France Noyer said yesterday that the ECB is ready for easing if inflation stays low for too long. Such statements from the more…

Bears keep putting pressure

By GG Analyst in Reviews 0 Comment

EUR/USD

Wall Street didn’t manage to recover fully after Thursday’s sellout. During the US session selling was still heavy as investors couldn’t find any support in the fresh corporate reports. The disappointment with the indicators of technology companies spread to other sectors as well. Actually, the reports fall short of the investors’ high expectations, which picture them strong enough to justify the overrated stocks and fight the negative consequences of the Fed’s policy toughening. Already now the bonds are increasing their yields, which makes them a bit more attractive, depriving the stock market of the growth potential. The single currency seems to more…

Ready to retrace

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar keeps growing and has already risen close to 1.3900. The dollar demand has been less strong this week, which is partly a result of the lower interest in the US stocks and partly – of the realization that the ECB won’t move in the direction of new incentives, while the EU economy is improving. Regarding stocks, we can see the growing confidence of investors in the inevitability of a retracement in the near future. Besides, lately the core indexes feel difficulty with growth and are trading flat, while volatility indexes have declined to the levels, speaking about a possible more…