Draghi is beginning to resemble Trichet

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro climbed quite high yesterday, after Draghi’s words that the monetary policy doesn’t need any adjustment now. The ECB is still confident in the positive effect of the November rate cut, but adds that it is not very visible yet. We’ve frequently mentioned that the currency markets suffered a period of even higher rates  of the euro short-term loan before the New Year Day. The impact of the decline by quarter of a percent can be noted only with other conditions being equal, which never happens in the market. And the unwillingness to take advantage of inflation slowdown to ease more…

Ready for vigorous movements?

By GG Analyst in Reviews 0 Comment

EUR/USD

Stock markets continue their upsurge. For advocates of technical analysis it should be important that EURUSD closed the week above 1.3500 and even went beyond the starting level of Wednesday’s correction. At the same time stock markets managed to close near the psychological levels of 16000 and 1800 in Dow and S&P 500 accordingly. It happened due to the favourable US statistics combined with rather dovish claims of the Fed’s high officials. Yet, as you remember, the euro ran a correction on the comments about possible introduction of the negative deposit facility rate by the ECB and the Fed’s minutes, according more…

The ECB and Fed are getting farther from each other

By GG Analyst in Reviews 0 Comment

EUR/USD

The CBs of the world’s biggest economies keep moving in the opposite directions. The main currency pair received a double blow yesterday. It was somewhat unexpected as occurred neither on the publication of the Fed’s meeting minutes nor the release of statistics. Advocates of the technical analysis could triumph yesterday. For 10 trading sessions the single currency had been moving inside the narrow ascending channel and, as a result, had driven the pair in the overbuy zone, so when a correction broke the support of the uptrend (1.3510), it intensified the decline. Eventually, the movement carried the pair away to 1.3413 more…

EURUSD is ready to pierce the resistance

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro doesn’t even think to retreat. Yesterday’s correction in the pair from 1.3790 to 1.3740 by the beginning of the US session had ended with another uprise to the upper bound of the new channel. And in the Asian session today after a short respite the pair is again testing the resistance of the channel. Among yesterday’s statistics only the Consumer Confidence Index for the eurozone is of interest – it showed some improvement. However, it is hardly possible that growth of the index from -14.9 to -14.5 is the reason for the positive sentiment in regard to the single 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…