Too big to grow

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex’s reaction to Bernanke’s commentary was the strongest, yet the market was the first to come to senses after the violent movement. Yesterday since the end of the US trading session and all through the Asian one the dollar index was retracing. Friday is expected to be quiet as no important news is scheduled for today. Among yesterday’s releases the German Flash Manufacturing PMI, which reflected the continuing weakening, deserves attention. Now the euro zone and Germany, a former locomotive, show roughly the same performance. Though, Germany’s Services PMI proved to exceed expectations, returning to the growth zone after two months more…

Expected unexpectedness

By GG Analyst in Reviews 0 Comment

EUR/USD

At the press-conference last evening Bernanke announced that the Fed would probably start the stimulus rollback later this year. Let’s be honest. Was there anyone in the market who didn’t believe that this scenario was possible? Numerous surveys show that the main question is not if the rollback will be held this year, but when. The market reaction was definite: to purchase dollars. The single currency was pushed down by almost 1.5 figures from above 1.3415 to  1.3260. Moreover, by the beginning of trading in Europe selling had begun again and by now the currency has hit a daily low at more…

GBP’s streak of luck is over

By GG Analyst in Reviews 0 Comment

EUR/USD

Set free, that is outside the narrow trading range, the single currency entered the period of high volatility. At the end of Monday the pair soared to 1.3380, but already by the beginning of the EU session it had returned to the preceding levels. The reason for that was Draghi’s determination to apply non-traditional monetary policy measures, which he expressed at the conference in Israel. The pair plunged to 1.3325, but was supported by the bulls and managed to set new daily highs. It’s an interesting case. The ZEW Economic Sentiment came out slightly above expectations, but the pair was already more…

EUR is expecting the Fed’s decision around the local highs

By GG Analyst in Reviews 0 Comment

EUR/USD

The consolidation of EURUSD yesterday eventually ended in with the break through the upper limit of the range, which led the pair to the daily high at 1.3381. Despite the fact that it is a really impressive scale for the move without reason, the bears immediately took it as an opportunity to sell the euro at a higher price. From the end of the New York session till the end of the Asian one the single currency was gradually depreciating. Now the rates are at 1.3350, which can become a good level of support. In the meantime, the market remains sluggish more…

Forex is consolidating before important events

By GG Analyst in Reviews 0 Comment

EUR/USD

USD failed to carry out a full-fledged correction at the end of the last week. EURUSD was fluctuating within the narrowing triangle.  An upward touch occurred at 1.3292 last Friday. At the beginning of the Asian session the pair rose to 1.3356 for a while, but then again retraced to the centre of the range. The main event of the week is the Fed’s monetary policy decision, scheduled for Wednesday evening. It’s quite possible that while there are no drivers Forex will continue consolidating at the achieved levels. Before the Fed’s decision the market can be spurred only by the ZEW more…