Courage of the sterling

By GG Analyst in Reviews 0 Comment

EUR/USD

Because of the Easter holidays the markets have stayed in the mode of restricted dynamics since Friday. On such days it’s better to be on the alert to catch a sharp movement of the market should some unexpected news arise. In the meantime, without such news trading is held within a very narrow range. On Friday EURUSD was fluctuating in the range of 20 pips between 1.3822 and 1.3806 (at the closing time). During the Asian session today the pair went as low as 1.3804 and now it is again at the top of the mentioned range. As far as the more…

EUR won’t surrender 1.38 to USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The favourable economic data together with a series of positive corporate reports again draw investors’ attention to the US assets. But if it looks like a true return to the traded ranges for stocks and increases the chances of hitting new highs in S&P 500, USD unfortunately can’t boast any significant dynamics. EURUSD doesn’t have a reason even to go below 1.3800, sticking halfway. To convince the dollar-bulls in the earnest nature of intentions the week should be closed below 1.3700, which will completely make up for the growth in the previous week. But it is very unlikely as today the more…

Yellen against USD

By GG Analyst in Reviews 0 Comment

EUR/USD

USD has been falling after Yellen’s words about ‘continuing commitment’ to economic support from Fed. It means that Fed’s governor remains dovish, just like at the end of the previous year. This softness anyway didn’t break the trend for tapering, set by another ultra-dove, Bernanke. In effect Yellen said that the threat is posed by deflation rather than inflation. In reaction to this comment EURUSD returned to 1.3840 during the Asian session. It is even possible that the growing energy independence of the USA is playing a crucial role here. The thing is that in the 2000s the global economic growth more…

Resistance to USD growth

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the US assets were again in demand. While stock exchanges were recouping the losses incurred at the end of the previous week, the US dollar was trying to partially offset the earlier losses. EURUSD fell down to 1.3790 yesterday, but soon it found buyers, who brought it back above 1.3800. Those market forces once again disabled taking control over the dollar despite the strong inflation data. CPI grew to 1.5% y/y against the supposed 1.4% and 1.1% a month ago. It is also remarkable that the core indicator, that with food and energy excluded, also returned to 1.7%, which was more…

In anticipation of a pullback

By GG Analyst in Reviews 0 Comment

EUR/USD

On Monday the single currency was under a moderate pressure, caused by Draghi’s promise to ease the policy not only in case of weak inflation, but also if the euro remains expensive. It’s quite logical as growth of the rate ensures inflation slowdown in the future and it happens with a certain lag, leaving space for maneuver. The most important thing is to use it in good time. Anyway, the euro remains under pressure. Governor of the Bank of France Noyer said yesterday that the ECB is ready for easing if inflation stays low for too long. Such statements from the more…