Three global scenarios for EURUSD

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD

The common currency was trying to fix itself above 1.13 level several times during two previous weeks. Bulls managed to accelerate the pair highest possible up to 1.1360, but the key resistance at 1.14 remained unreachable. Extremely low volatility on the markets until Friday explained by hints expectations from the Fed about chances of soon rates rising. Yellen’s speech about possible September rising could not convince markets. However, Fisher, Fed VP, has commented that the words of his Chief they should consider as a hint for the possibility of the rate rising in September. This revelation brought to the markets a more…

Expectations are the first and foremost

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Waiting

EURUSD

The influence of strong indicators of the labor market from the USA, issued on previous week, did not keep for a long time. On Tuesday, markets again tended to sell dollar. Eventually, by Friday the pair EURUSD reached 1.1250, getting back to the local lows of August. The released statistics calls our attention to the decline of labor efficiency in the USA and the simultaneous increase in expenses for the workforce. That is the evidence of hiring new employees by the companies. The efficiency grows when they fire people and replace them by programs. Therefore, the decrease is not such a more…

Dominance of downtrends

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Bears

EURUSD

Friday payrolls from the USA appeared strong. It is important to mention that not only employment increased but either wages growth accelerated. Thus, all together those indicators shifted expectations what gave the powerful impulse to buying USD against most currencies. For EURUSD this strong data resulted in a big drop of 110 points and in a support level a bit higher 1.10. At the beginning of the new week the pair was traded around this level, reflecting the traders’ search for new impulses. Trade has been consolidating around 1.10 since the end of June. As well the pair is traded currently more…

Bearish oil market and USD trend formation

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Oil & Dollars

EURUSD

The previous week became quite productive for the pair. On Wednesday, after FOMC comments, the American dollar got under pressure. Despite of the fact that the committee mentioned improvements in the economy and risks decline in the nearest perspective, the comment did not include anything about rate increase next time, as it was done last October before they raised the rate in December. They just made a standard comment about readiness to make it on any of the next meetings. But definitely this is not the sign for the tightening in the nearest future. Either the members of Federal Reserve have more…

Mature divergence of Federal Reserve and Bank of Japan

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FRS

EURUSD

This week good news from the USA economy continued to appear. However, some noticeable strengthening of the American currency came into view only by the end of the week. EURUSD ended Friday trading below 1.10 and was more than a figure away from the 200 MA. Such position allows us to talk about potential for the further decline when the trading starts the next week. Dollar bulls are inspired by the several good releases from the US economy.

Building permits and housing starts were better than expected and indicated the further growth. Existing houses sales reached 5.57 m. showing the highest level more…