EU currencies get support from stock growth

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s growth of stock exchanges helped the single currency in thin trading. While the main capital markets (Britain and the USA) were closed, stock index futures were attacking the new highs. Thus, S&P 500 not only managed to set a new record at 1900, but also to close out the day above that level. In the meantime, the technical analysis shows that this indicator is overbought. Strictly speaking, it doesn’t promise an immediate reversal at these levels. So those who play against the market should be more careful. The current position of the index urges to look out for the moment more…

EUR: a broken boundary

By GG Analyst in Reviews 0 Comment

EUR/USD

Strengthening of right-wingers in the European Parliament has complicated the position of those, who insist on austerity measures. It was quite expected that the number of euroskeptics would grow, but the actual growth has proved to surpass the forecasts and, as a result, put the single currency under pressure on opening of the trading day. Trading is now close to 1.3620, whereas the lowest level reached by the pair was 1.3612. Technically there is some reason for this poor beginning of the day. The single currency closed the week below the important 200-day MA, which promises growth in selling as large more…

EUR has reversed, others lag behind

By GG Analyst in Reviews 0 Comment

EUR/USD

Even the relatively strong PMI rates for May couldn’t change the market sentiment regarding the single currency yesterday. The level of 1.37 was finally surrendered and now trading is held close to 1.3650. We got evidence of the downtrend formation when the pair dropped below the preceding low of 1.3675 and became sure about the bulls’ strength when went below that level once again. The lows were not completely renewed as on Wednesday the pair declined to 1.3633 and this morning it only hit 1.3640. The current rates are extremely important for the pair as the 200-day MA is just 10 more…

EUR doesn’t surrender 1.37

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar has been depreciating for the recent two weeks. Despite the fact that during the last week the pair has mainly been close to 1.3700, we can’t but notice that bears still contrive to push it lower and lower before bulls gain revenge. Yesterday’s local low preceding the FOMC meeting minutes brought the euro to 1.3634. The minutes themselves proved to be milder than could be expected. The news released before the meeting on April 29-30 was generally positive, so the market expected to see more confidence about tapering and, probably, more certainty about rates. However, ‘flexibility’ in consideration of more…

EUR moved away from the extremums

By GG Analyst in Reviews 0 Comment

EUR/USD

In the absence of important news players tried to take profits from the preceding growth in the pair. Because of that the pair moved away from the extremums and hit 1.3900 this morning. Today the markets will be focused on Draghi’s speech at the press-conference after the rate decision. It’s quite possible that we will hear again about readiness to act and that the continuous low inflation will be pernicious for the economic growth. Not only the market participants, but also journalists of every stripe and colour have been long in the know about this chapter of economic theory and as more…