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…

Geopolitics strikes at the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The safe assets are again appreciating. At night Obama permitted air strikes at Iraq, which certainly intensified the geopolitical tension in Eurasia. Ukraine and Russia, Gaza and Israel, Syria and Libya – all these countries are a cause for concern not only among cautious traders already. During yesterday’s press-conference the ECB President Mario Draghi often mentioned sharp strengthening of the geopolitical risks in the region, which tells negatively on the EU economy and puts pressure on the euro. Most likely, the negative, caused by the restriction of the commodity and money flow due to the EU sanctions and Russia’s counter measures, more…

Germany can’t save everyone

By GG Analyst in Reviews 0 Comment

EUR/USD

Italy is again suffering recession. It became obvious after yesterday’s release of the Prelim PMI data for the second quarter. The statistics indicated the economic slowdown by 0.2% in 2Q after the decline by 0.1% in 1Q. Actually, over the last three years Italy reported only one quarter of growth – the last quarter of 2013. All the rest of the time the economy was suffering sluggish weakening. Even some decrease in the unemployment rate since the beginning of the year doesn’t save the situation. 12.3% is still too high to rely on the growth of consumer activity. Even the foreign more…

Kiwi cannot fly

By GG Analyst in Reviews 0 Comment

EUR/USD

Another attack of bears pushed the single currency down against the US dollar and the British pound yesterday. The reason for the pair’s decline below the previous low was formally in the divergence of fundamental statistics. The final EU Services PMIs generally didn’t reach the preceding and forecasted rates. The only exception was Germany, whose PMI was raised from 56.6 to 56.7, but even there the Composite PMI was revised down because of the reduction of the Manufacturing PMI. Upon the whole the EU services sector is demonstrating the most active growth since May 2011, but the fact that the index more…