GBP suffers again from Brexit

By GG Analyst in Reviews 0 Comment

EURUSD

Yesterday the pair got the blow as a result of the terrorist attack and obviously low economic indices. In spite of the fact that Ifo indicator was better than expected and reached 106.7 level, its movement looks more like rebound from the last month lows rather than real trend turn. Meanwhile, German Manufacturing PMI decreased from 50.5 to 50.4 and could not reach the forecasted of 50.9. The same French index has fallen below 50 for the first time since last August, appearing now at 49.6 though predicted level was 50.2. Economic sentiment as well could not show investors delight more…

Euro declines without news

By GG Analyst in Reviews 0 Comment

EURUSD

As before Federal Reserve’s announcement about interest rate, pair EURUSD slowly declines without news releases. The reason is the demand growth for risky assets that encourages borrowings in EUR which stands as a funding currency. Though, it’s important to realize that scope of Euro weakening is less than the two previous escalation impulses caused by ECB and FRS. To boost selling of common currency market participants, probably, willing to have more heavy reasons that will create bearish approach for euro. This is blocked by the confidence of the market that interest rate will reach the lowest boarder received as hints from more…

False dip of the greenback

By GG Analyst in Reviews 0 Comment

EUR/USD

USD’s growth at the beginning of the US session last Friday could be easily accounted for by the desire to lock in profits. For that reason market participants selected the first coming macroeconomic report as a cause to lock in profits. The newsfeeds say that they hurried to sell the dollar on the message about  increase in business inventories by 0.3%. But in our opinion, it’s hardly reasonable. This growth of business inventories, in accord with some surveys, met the expectations. Moreover, the news releases before and after the business inventories report were also better than expected. And they were of more…

Attempts to put pressure on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro had managed to recover by the end of the day and close Monday positive. During the day EURUSD went as high as 1.2714, but closer to its end the pair was pushed below 1.2700. The data on the US consumer spending surpassed expectations, showing that personal spending grew by 0.5% after going down by 0.1% a month before. The data went beyond expectations and indicated revival of demand, which can urge the Fed to initiate tightening, or in other words normalization of the monetary policy. Besides, the consumer and business confidence of the eurozone keep sliding down. Against such more…

Technical analysis highlights a possibility of short-term correction

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is no longer as sensitive to Draghi’s comments as before. Yesterday he expressed readiness to expand incentives, including non-traditional measures. However, the markets don’t take these words as a threat now as Draghi’s under increasing pressure of Bundesbank and the central banks of other core countries. Thus, the reaction to Draghi’s rhetoric was quickly exhausted. The pair dropped down to 1.2816 (a new high for more than a year). The pair remains oversold. But meanwhile its current position is explained by fundamental factors. So short-term traders can only rely on a quick pullback within the range of the more…