Nothing will ever stop the dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

EUR keeps waging an attack as if it made up for the unimpressive beginning of the year. Then the dollar was expected to show almost immediate growth, believing that QE tapering was a good reason for the currency’s appreciation. However, as seen, this reason is posed by the prospect of the rate increase. It’s of interest that market participants often ran ahead of time then, expecting earlier toughening of the policy, though already in a few months there was nothing else to do but suppose further incentives. Now the situation seems to have changed radically. According to the Fed’s research, the more…

Geopolitics strikes at the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The safe assets are again appreciating. At night Obama permitted air strikes at Iraq, which certainly intensified the geopolitical tension in Eurasia. Ukraine and Russia, Gaza and Israel, Syria and Libya – all these countries are a cause for concern not only among cautious traders already. During yesterday’s press-conference the ECB President Mario Draghi often mentioned sharp strengthening of the geopolitical risks in the region, which tells negatively on the EU economy and puts pressure on the euro. Most likely, the negative, caused by the restriction of the commodity and money flow due to the EU sanctions and Russia’s counter measures, more…

Suspension of USD’s rally

By GG Analyst in Reviews 0 Comment

EUR/USD

The employment statistics proved to less favourable than expected. The labour market created 209K of jobs instead of the expected 230. The private sector employment increased by 198K against the forecasted growth by 225K. The average earnings haven’t grown against the previous month, which anyway hasn’t posed an obstacle for growth of the annual rate from 1.9% to 2.0%. But still it is worse than the supposed acceleration to 2.2%. It seems that employers don’t hurry to raise earnings despite the impressive increase in the number of jobs. Possibly, the reason is that there is a huge number of potential workers, more…

USD’s futile attempt to trigger stops

By GG Analyst in Reviews 0 Comment

EUR/USD

The story with the Malay plane combined with closeness of the local lows in EURUSD provoked emergency liquidation of long positions. The pair was picked up below 1.35, but before that it managed to gather stops after reaching 1.3490. Bears were very close to the annual lows, set in early February (1.3476), but failed to cross them. Anyway, the week was closed above 1.35 and this morning the single currency was still being purchased.  Now the pair is trading at 1.3540, having come off the dangerous lows, which are able to provoke further decline. There is no important news scheduled for more…

Profit taking in GBP

By GG Analyst in Reviews 0 Comment

EUR/USD

Monday didn’t abound in important news releases and statistics. Anyway, the single currency managed to slightly grow against the dollar and the pound. At the very beginning of trading in Europe EURUSD rose by 40 pips due to the stronger risk demand, which we highlighted in our yesterday’s review. However, by the end of the day the positive had dispersed. To some extent it was a result of Draghi’s claims in the EU Parliament that purchases of public and private debt fall ‘squarely’ within the ECB’s mandate. Many officials in Germany and other core countries, including members of the ECB, are more…