Profit taking in GBP

By GG Analyst in Reviews 0 Comment

EUR/USD

Monday didn’t abound in important news releases and statistics. Anyway, the single currency managed to slightly grow against the dollar and the pound. At the very beginning of trading in Europe EURUSD rose by 40 pips due to the stronger risk demand, which we highlighted in our yesterday’s review. However, by the end of the day the positive had dispersed. To some extent it was a result of Draghi’s claims in the EU Parliament that purchases of public and private debt fall ‘squarely’ within the ECB’s mandate. Many officials in Germany and other core countries, including members of the ECB, are more…

Bulls leave no hope

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar retained the positions gained on Thursday, remaining at 1.36 against the euro. In the meantime, commentators are considering the issues of the Portuguese Bank as a small hitch, which shouldn’t be exaggerated. They’d better regard it as a canary in the coal mine. Anyway, in general investors are positively disposed now, which is mainly a result of the strong US employment statistics. These data (employment growth by 288K in June and returning of the weekly unemployment claims close to 300K) increase chances of inflation acceleration in the coming months. Yet, the participation rate is rather low and in more…

Europe’s periphery again catches attention

By GG Analyst in Reviews 0 Comment

Though James Bullard is not a voting member of the Fed now, he is still concerned with the Committee’s inside. For this reason his comments that FOMC could start increasing the rates earlier than expected by the market stopped the US dollar from falling in the morning yesterday. And then the almost forgotten fear again fell upon the markets, the fear about Europe’s ‘troubled’ countries and their financial sectors. The second largest bank of Portugal aroused particular concerns around its solvency, as Espirito Santo International, a shareholder of Banco Espirito Santo SA, missed short-term debt payments. It immediately stirred concerns about more…

Fed to end QE by October

By GG Analyst in Reviews 0 Comment

EUR/USD

As reported in yesterday’s meeting minutes of FOMC, if the US economy maintains the expected growth rate, the Fed will announce the end of QE already in October. It means that at the October meeting the decrease will make 15bln and before that, in July and September, asset purchases will be reduced by 10bln. It is unlikely that the Fed will give up this course for a quicker one because of the strong employment data. It is remarkable that the minutes highlighted concerns about investors’ possible misinterpretation of the  risks in the hope that interest rates will remain low for long. more…

Persistent purchasing of EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

It was quite a boring trading session for the pair, nothing to compare with Brazil’s defeat in the semifinal. It is not the first time the US dollar takes timid attempts to grow in the morning and then falls down in the afternoon. It is remarkable that the depreciation of the US currency (the growth of EURUSD) is going on against the correction in the stock exchanges. The latter are concerned about the ratio of corporate profits before the beginning of the reporting season – Samsung’s downward revision of the forecasts has its effect. Anyway, it doesn’t spoil the general picture more…