Bears keep putting pressure

By GG Analyst in Reviews 0 Comment

EUR/USD

Wall Street didn’t manage to recover fully after Thursday’s sellout. During the US session selling was still heavy as investors couldn’t find any support in the fresh corporate reports. The disappointment with the indicators of technology companies spread to other sectors as well. Actually, the reports fall short of the investors’ high expectations, which picture them strong enough to justify the overrated stocks and fight the negative consequences of the Fed’s policy toughening. Already now the bonds are increasing their yields, which makes them a bit more attractive, depriving the stock market of the growth potential. The single currency seems to more…

Ready to retrace

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar keeps growing and has already risen close to 1.3900. The dollar demand has been less strong this week, which is partly a result of the lower interest in the US stocks and partly – of the realization that the ECB won’t move in the direction of new incentives, while the EU economy is improving. Regarding stocks, we can see the growing confidence of investors in the inevitability of a retracement in the near future. Besides, lately the core indexes feel difficulty with growth and are trading flat, while volatility indexes have declined to the levels, speaking about a possible more…

USD falls into a nosedive

By GG Analyst in Reviews 0 Comment

EUR/USD

The risk demand showed up where no one expected it. We had thought that the meeting minutes would be tougher, but the reality proved to be quite different. FOMC is trying to move off Bernanke’s sharp limits which could become a guideline for the markets, when the Fed will raise the rate. Strictly speaking, it is not a sign of the extra-soft policy, but still doesn’t let us speak about its toughening. Thanks to it the US stock markets grew by more than a percent and the dollar got weaker across the board (except for the yen). EURUSD rose to 1.3870, more…

EUR redeemed its positions

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency regained its positions after Draghi’s speech last Thursday. Yet, it is not only the merit of the EU officials, who have been saying since the beginning of the week that QE and other ways to ease the monetary policy are merely treated as possible options for the future, rather than as a predetermined scenario, which is simply not highlighted yet. The dollar is pressurized also due to the soft rhetoric of the Fed’s members, who intend to raise the rate when the economy is more ready and who also consider the current policy not transparent enough for the more…

EUR grew due to ECB’s confidence in growth

By GG Analyst in Reviews 0 Comment

EUR/USD

The plenty of speeches made by the EU officials yesterday were to the benefit of the single currency. The euro/dollar started growing after Ewald Nowotny had said that the ECB was also seriously considering  consequences of different ways to ease the monetary policy, but didn’t hurry to apply them. Yves Mersch also pointed out in his speech that the economic recovery in the EU was reducing deflation risks. Actually he said exactly the same thing as we had done before the ECB’s meeting last week (‘Don’t wait for Draghi to be mild’). We were mistaken only about the tone of the more…