Friday’s fall of the dollar – is it a signal?

By GG Analyst in Reviews 0 Comment

EUR/USD

The upward move, which we described in our Friday’s review, was just the beginning of the drama that developed further. The single currency didn’t have a single black candlestick till 13 GMT, closing positive all the time. As expected under such conditions, the following upsurges were stronger than the preceding ones. The pair got exhausted already at 1.3891. By then it had already made 70 pips in one direction and almost 30pips in the opposite one over 15 minutes. Technically, these are the highest levels since late 2011. And from a strictly technical point of view, Friday’s move opens the way more…

Bulls’ spurt

By GG Analyst in Reviews 0 Comment

EUR/USD

Despite the strong domestic statistics, the American currency still feels pressured. Nevertheless, the pressure weighs not only upon the US currency, but also on other safe assets. The yen and franc are suffering and the stock markets keep demonstrating impressive growth. This surge of optimism has been caused by the news that the US employment market is doing well. The weekly unemployment claims have reduced by 42K to 338K instead of growing to 380. The forecasters have made a serious mistake, or probably it is all about the holiday season, when population gets less active. After all, the number of continuing more…

Outlook for 2014: Part Two

By GG Analyst in Reviews 0 Comment

EUR/USD

The Asian stock markets showed some growth after the holidays, taking their lead from the US pre-Christmas positive mood. Yet, the yen is still under pressure. It hit a fresh five-year high against the dollar – at 104.82. AUDUSD also opened with a gap down. Probably, it is somehow interconnected as AUDJPY hasn’t demonstrated any changes – the cross opened at 93.06, where it had been before closing. So, no significant shifts. And it is quite reasonable as during the holiday time there wasn’t any important events. During the pre-Christmas trading session the dollar was in demand most of the time, more…

Outlook for 2014: The time of shocks is over

By GG Analyst in Reviews 0 Comment

EUR/USD

Let’s outline the prospects of the major currency pairs in the coming year. The euro performed well in the last quarter, considerably appreciating against the dollar and the yen. Even against the sterling its decline was not as strong as it could have been. And if we include here the rate cut by the ECB in November, the current strength of the single currency looks really mysterious. We think that EURUSD is getting support from the EU banks, which store liquidity on their balance sheets to get stronger by the time of stress tests. The improved sentiment indicators in the region more…

Marking time

By GG Analyst in Reviews 0 Comment

EUR/USD

Two steps back and a step forward – this is approximately the way in which describe the dollar’s performance in the recent days can be described. On Friday and yesterday it was retreating, thus giving bulls an opportunity to test 1.3700. Yet, all the attempts to get above 1.3710 were not very confident and were immediately followed by a pullback at a safe distance. Now trading is held at 1.3680 and the dollar is getting some support as the Fed’s hawk Fisher has mentioned that he was advocating a bigger cut of the purchases last week. This news, as well as more…