The payrolls shook 1.25 in EURUSD and pushed GBPUSD below 1.60

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency tested 1.2500 on Friday. This decline was caused by the perfect US employment statistics. The unemployment rate decreased from 6.1% to 5.9% and the number of jobs grew by 248K instead of the expected 210. Besides, the August statistics were revised up from 142 to 180. The average weekly hours has also slightly increased (from 34.5 to 34.6). But in the meantime, the average hourly earnings lost 1%, which in a way contradicts the classic situation with the tight employment market. It’s also no good that the participation rate has again fallen. In September it made 62.7 against more…

Only EUR held out yesterday

By GG Analyst in Reviews 0 Comment

EUR/USD

ECB Governor Mario Draghi failed to meet the demands of market participants. They were displeased with absence of a clear guideline in the monetary policy easing. Formally, the Bank pointed out that the policy has too many indefinite variables, so the size of future bond purchases can’t be forecasted with great certainty. However, the BOJ, for example, solved the problem in a different way: they set the target (2% of inflation in the medium term) and defined the way (doubling of money supply), also remembering about methods (purchasing plans which can change). Basing on Draghi’s comments, the markets suppose that the more…

Hit the bottom?

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday bulls managed to keep the pair from hitting new lows. It was actively purchased below 1.2590. Earlier today we saw some hints at profit-squeeze in USD, which helped to push the pair to 1.2670. Yet, the movement doesn’t look very steady in expectation of details on the ABS programme. Again it was interesting to see that the news about slower business activity didn’t push the pair to new lows. On the contrary, the latter slides down much easier when there isn’t any obvious reason. Yesterday’s data on the German Manufacturing PMI in September were revised from 50.3 down to 49.9 more…

USD hits fresh highs

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EUR/USD

We were right – Germany is not the entire eurozone. Its price stability hasn’t helped to keep the rates for the whole region unchanged. According to Eurostat’s preliminary inflation estimate, published yesterday, the annual inflation rate in September fell to 0.3%. It corresponds to the rates expected at the beginning of the week, but after the reassuring German statistics traders have already managed to build retention of this index at 0.4% into their strategies. This situation intensifies pressure on the ECB, urging the latter to announce the beginning of the bond buying programme. On speculations that it will happen already this more…

Attempts to put pressure on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro had managed to recover by the end of the day and close Monday positive. During the day EURUSD went as high as 1.2714, but closer to its end the pair was pushed below 1.2700. The data on the US consumer spending surpassed expectations, showing that personal spending grew by 0.5% after going down by 0.1% a month before. The data went beyond expectations and indicated revival of demand, which can urge the Fed to initiate tightening, or in other words normalization of the monetary policy. Besides, the consumer and business confidence of the eurozone keep sliding down. Against such more…