Toward the mountaintop, inch by inch

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro keeps recouping its losses and has already recovered to the levels seen before the ECB’s rate decision. 1.3500 had been broken by the beginning of the EU session, after which bulls wanted to take the pair higher, but were stopped at 1.3540. The bears are retreating, albeit gradually. To surrender there should be more solid reasons and there hardly was any yesterday. In the meantime, stock markets were making their way up for the most part of the day. At the beginning of trade S&P 500 hit 1800 and Dow broke above 16000, but then players decided to start more…

It’s getting hot in the stock market before the holiday season

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex-bulls are getting stronger and growth of the stock market in the absence of other important news is pulling the dollar down. All through the previous week EURUSD was recovering from the blow it had received on the interest rate cut at the beginning of November. But as we live at the time when interest rates around the world are close to zero, the ECB’s cut of the deposit-facility rate and of the refinancing rate by 0.25bp resulted in the reduction of the currency market interest rates by just a few percent points. Thus, to achieve the necessary effect Draghi will more…

Forex disregards Yellen’s softness

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD remains in the uptrend. But yesterday it seemed that we turned on a serious resistance at 1.35. Thus, on the one hand, we’ve got a series of ascending intraday lows, but on the other hand bears are putting up strong resistance at 1.35.  By the end of the week the market has stuck somewhere in between 1.3418 and 1.3490, which were hit during the European and US sessions (now it is 1.3450). It’s remarkable that for all that stock exchanges don’t feel any confusion. For them the situation is pretty clear. The next chairman of the Fed, Janet Yellen, is more…

Central banks’ games

By GG Analyst in Reviews 0 Comment

EUR/USD

Concluding from the recent speech of Janet Yellen, the new chairman of the Fed promises to be even milder than Bernanke. In the comments, prepared for today’s report to the Senate Committee, she says that yet the Fed has got lots of various means to support the economy and the labour market, which are now far from the potential rates. Upon the whole she believes that now it is necessary to provide as many incentives for growth as possible in order to return to the normal mode of the monetary policy. In this case we see a striking difference between the more…

EUR bears should be more eager

By GG Analyst in Reviews 0 Comment

EUR/USD

Despite the blow Draghi delivered to the single currency last week  and also the pressure put by the employment statistics, the single currency is still strong enough to make its way up. The charts show a series of ascending intraday lows: 1.3293, 1.3317, 1.3358. In the short term these data can be enough to be bullish, but regarding a longer term it is quite dangerous to purchase the single currency at the current levels. Trading is now held at 1.3430 and it is the highest rate which EURUSD corrected to after the rate cut announcement. It is quite likely that the more…