USD is sinking because of risk demand

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we witnessed a splendid rally against the dollar. Let’s be honest, it was quite a surprising thing. EURUSD grew from the lows of Thursday (1.3470) by over two figures. The markets slowed down only near the yearly highs, at 1.3680. Now we see some consolidation, so the pair has managed to retrace by 20pips off yesterday’s highs. When ascending, stock markets managed to hit a fresh historic high at 1733 (for the December futures). Psychologically the optimism is understandable: the markets got the long-awaited relief and the debt ceiling increase, which is able to arouse demand for risky assets. But more…

Games of the dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

The Congress voted for the debt ceiling increase. Now the Treasury is allowed to take loans at least till February 7. Exactly by this time all disagreements regarding the deficits and government spending structure are expected to be eliminated. Besides, the Treasury is allowed to take measures to postpone the date, when it runs out of money. According to different estimates, it may be in March-April. But it doesn’t mean that the political crisis is postponed till that date. The nearest deadline, set by lawmakers, is December 13 – by that time the lawmakers will have to approve a long-term deficit more…

Denying to the last

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s a funny thing: already today the debt ceiling negotiations should come to the end otherwise default will occur already tomorrow, but for all that the markets manage to see the positive in the news from Washington. They are merely denying the problem. From the psychological point of view, the markets are just at the first stage – denial – and they still have to go through anger, bargaining, depression and acceptance. Yet, the other stages will scarcely be favourable for stock indices and the US dollar. Now the most probable way out is seen in another compromise with the debt more…

Politicians may reach an agreement on Tuesday

By GG Analyst in Reviews 0 Comment

EUR/USD

Just yesterday we pointed out that decline of stock exchanges was caused by lack of interest in the dollar, but already today we see quite a different picture, though at the limited scale. The senators’ hint at the possible conclusion of the fiscal deal on Tuesday made stock exchanges grow – the S&P 500 futures exceeded 1700 pips – yet the single currency was falling only during the US session, when indices were growing intensely. Later, when the general positive mood spread to other markets, EURUSD set off in the upward direction. Now trading is held at 1.3570, which 20 pips more…

Great expectations and grim reality

By GG Analyst in Reviews 0 Comment

EUR/USD

The negotiations on Capitol Hill have stalled. The traders, who hoped that an agreement would have been reached by Monday, are now utterly disappointed, which results in a stock market correction after the heavy growth at the end of the previous week. See how phantom the reasons for recent growth of stocks have been – it’s been based only on the suppositions of progress, without any real evidence of such. So don’t be surprised if in the coming hours you will be a witness of no less impressive retracements. The politics is quite a phantom and unsteady thing. The economic stats more…