Degrading US GDP for 1Q

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s data on the US GDP proved to be a real disaster and caused weakening of the US currency. Often the final (third) estimate of the US GDP doesn’t bring any significant changes, but this time the annualized growth rates were considerably revised down to -2.9%. Yet, the expected decline made only 1.8%. A month ago it was reported about the decrease by 1.0% and initially – about growth by 0.1%. Thus, with time the GDP estimate for the first quarter has deteriorated. Many experts, including the Fed’s members, think that it is an extremely retrospective view as it considers a more…

Carney stirred GBP selling

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we reported that Monday’s business activity statistics proved to be worse than expected and indicated growth slowdown. Yesterday’s Ifo indicators also fell short of expectations. The Business Climate index has been falling for two months in a row, though even now it is still quite high. What was the euro/dollar’s reaction? None. The single currency continued its attack on the US dollar, going to 1.3627 in the heat of the EU session. Then the pair was affected by caution of the market players, who didn’t hurry to take their profits after hitting a fresh historic high in the US indices. more…

Expanding attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s Flash PMIs for the eurozone could become an unpleasant surprise for the euro, just like frankly dovish comments of Draghi and Nowotny at the weekend and on Monday. Actually, they didn’t. The single currency proved to be strong enough to fight attraction, although absolutely all the Flash PMIs fell short of expectations. The German and EU estimates remain above 50, which separates decline from growth. Anyway, Germany’s manufacture didn’t grow, staying at approximately the same level, and the services sector slowed down its growth. As a result, the composite index tumbled from 56.0 to 54.8 and the Flash Manufacturing PMI, more…

USD: a step back

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency feels quite confident. At least it is strong enough to get above 1.3600. Yet, it should be noted that the attempts to fray nerves of the 200-day MA haven’t been crowned with success. For now. On Thursday the pair got to 1.3642 and on Friday – to 1.3633 with the daily closure at 1.3600, just like now. And the 200-day MA has now risen to 1.3660 against 1.3630, when it tested that important technical level in May. The pair’s strength is mainly explained by certain disappointment of investors in the dollar. The Fed’s members don’t hurry with the more…

VIX lows, GBP highs

By GG Analyst in Reviews 0 Comment

EUR/USD

The dollar was getting weaker all through the EU session yesterday. Only at 1.3640 bulls eased their pressure, taking their profits. The same situation was observed in the stock exchanges. Now the euro/dollar is trading at 1.36, thus promising a good week for bulls. They will hardly yield here without trying to attack the 200-day MA. All this depreciation of the dollar leads to decline in the VIX volatility index. Earlier we thought that the very approach of the index to its lows would be more than enough and the market wouldn’t go further, since we expected that volatility would grow more…