Enjoyed the rally? Probably, it’s not the end

By GG Analyst in Reviews 0 Comment

EUR/USD

Did you like it? Several factors coincided at once to provoke heavy selling in the dollar, which only in EURUSD resulted in a move of 270pips from the daily low to the daily high. Moreover, having risen from 1.3090 to 1.33 for less than five hours after Draghi’s speech, at night the single currency was consolidating at 1.3340, it means traders have gathered their profits and do not hurry to purchase dollars. Let’s look into the reasons. First of all, during the day the US currency was gradually weakening as a result of the preceding poor statistics, which reduced the likelihood more…

The Fed points out improvement despite contraction in government spending

By GG Analyst in Reviews 0 Comment

EUR/USD

The US S&P 500 keeps suffering losses. Yesterday it decreased by other 1.3%. The stock bulls have a cause for concern. First of all, the ADP statistics proved to be worse than expected, showing employment growth in the private sector by 135K in May against the forecasted 171K. Of course, it’s better than the increase reported in April – 113K (revised down from 119), but it is too little to speak with confidence about steady growth. Anyway, in the Fed’s Beige Book, which was published later yesterday, market observers noted a surer growth, varying “from modest to moderate”, in 11 regions. more…

Is USD up for a reversal?

By GG Analyst in Reviews 0 Comment

EUR/USD

On Tuesday the single currency stalled on the way to 1.31. Thanks to other instruments  the US currency strengthened its positions a little bit. Anyway, the dollar index (DXY) is moving away from its extremums, which it reached at the end of the previous month. Yesterday it was by 2.5% below the highs, hit on May 23. We have more and more doubts that the dollar will resume growing in the near future. For about a year the index has been in the uptrend, yet the latter has been running in waves. We should take into consideration that another tide of more…

USD suffered because of PMI

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar suffered because of the poor statistics. First of all, Manufacturing PMI for May was significantly revised up. In Italy the index made 47.3 against 45.5 a month ago. In France it was raised from the same 45.5 to 46.4. In Germany – from 49.0 to 49.4. Manufacturing PMI for the euro zone totaled 48.3 against the first estimate of 47.8. Though the index is still below 50, reflecting a decline, it is possible to notice the general upward trend, lasting for about a year already. By contrast with it the market was surprised by a sharp plunge of more…

Stock and Forex markets are in disharmony

By GG Analyst in Reviews 0 Comment

EUR/USD

The last day of the month wasn’t very lucky for the stock exchanges. Players decided to gather their profits and were eagerly selling stocks. However, it wasn’t an obstacle for S&P 500, which demonstrated the highest monthly close in history and all in all seven months of growth. It is remarkable that in the meantime there was a real fight between bears and bulls in Forex. As could be expected, the latter didn’t hurry to abandon 1.30 and spared no effort to help the pair consolidate lower. Over Friday the pair first fell from 1.3050 to 1.2950, but at the end more…