Another hint at the rate cut by the ECB

By GG Analyst in Reviews 0 Comment

EUR/USD

As expected, the ECB is trying to put pressure on the single currency. On Monday several members of the EU CB made it clear that the current rates are not ultimate. The bank still can afford to decrease them. Besides, it seems that while the ECB has been keeping the deposit facility rate zero, officials have worked out for themselves a technical possibility of negative interest rates. Now this measure doesn’t look extreme and entailing unpredictable consequences. The reasons why euro-officials put pressure on the single currency are quite understandable. Since the rate cut at the beginning of the month the more…

Ready for vigorous movements?

By GG Analyst in Reviews 0 Comment

EUR/USD

Stock markets continue their upsurge. For advocates of technical analysis it should be important that EURUSD closed the week above 1.3500 and even went beyond the starting level of Wednesday’s correction. At the same time stock markets managed to close near the psychological levels of 16000 and 1800 in Dow and S&P 500 accordingly. It happened due to the favourable US statistics combined with rather dovish claims of the Fed’s high officials. Yet, as you remember, the euro ran a correction on the comments about possible introduction of the negative deposit facility rate by the ECB and the Fed’s minutes, according more…

The markets quickly recovered from the meeting minutes

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency couldn’t stay below 1.3400 for long. Bulls came to their senses and under the cover of the favourable EU statistics were purchasing the euro. The poor rate of France’s Manufacturing PMI (47.8 against the expected 49.6) was pushed into the background by Germany’s manufacturing stats, which proved to be better than forecasted (52.5 against the expected 52.3). The services sectors of these countries also performed below and beyond expectations accordingly. The flash index for the entire eurozone hit the level of 51.5 in November, which  is slightly better than the October rate of 51.3 and slightly worse than more…

The ECB and Fed are getting farther from each other

By GG Analyst in Reviews 0 Comment

EUR/USD

The CBs of the world’s biggest economies keep moving in the opposite directions. The main currency pair received a double blow yesterday. It was somewhat unexpected as occurred neither on the publication of the Fed’s meeting minutes nor the release of statistics. Advocates of the technical analysis could triumph yesterday. For 10 trading sessions the single currency had been moving inside the narrow ascending channel and, as a result, had driven the pair in the overbuy zone, so when a correction broke the support of the uptrend (1.3510), it intensified the decline. Eventually, the movement carried the pair away to 1.3413 more…

QE is getting out of date

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD is already testing the resistance at 1.3550. Actually, the pair has already managed to go above this level, but yet it is too early to celebrate victory over this resistance. Anyway, the fact remains that the pair is still gradually purchased. There hasn’t been much news since the beginning of the week, so the market mechanically has continued the same trend. Today it is worth paying attention to the US inflation and retail sales statistics. Existing Home Sales are also noteworthy. It will be statistics for October, when a part of government services were closed for more than two weeks. more…