Nothing fundamental, just techniques

By GG Analyst in Reviews 0 Comment

EUR/USD

Mr. Draghi is surely a more prominent figure than Ewald Nowotny. This is why his performance produced such a strong reaction in the market yesterday. And though the slope towards sales in the euro was really sharp, we didn’t expect that fixing of ‘shorts’ would run without even the slightest attempt to fight for an important psychological level of 1.20. We believe that yesterday’s growth of the euro up to 1.2320 after Draghi’s commentary was technical rather than caused by a sharp change in the market sentiment. The ECB’s head said that the Bank would do its best to protect the more…

March to new lows

By GG Analyst in Reviews 0 Comment

EUR/USD

Let’s have a bit of practice in the political logic. Germany asserts that without the fiscal compact it’s pointless to speak about any large-scale support measures in regard to the suffering countries. But the other day these very suffering countries suggested a closer integration than that pointed out by Germany. As is known, Merkel turned down this run of events: “only over my dead body”. What conclusion can we draw up? Only one – Germany is not at all eager to give any help, doesn’t aim at closer integration and doesn’t stand up for the preservation of the eurozone in its more…

Greece’s rating is cut to selective default, but who cares?

By GG Analyst in Reviews 0 Comment

EUR/USD

S&P has downgraded Greece’s credit rating to selective default (SD). This decision hasn’t come as a surprise, as the agency already promised to do it a couple of months ago. For this reason, there haven’t been any sharp euro sales. The agency has also pointed out that if there aren’t enough private investors engaged in debt swap, the country will inevitably face outright default. However, as the technical analysis shows, the euro sales were just held during the day yesterday, not longer. EUR/USD fell to 1.3366 during Monday’s session, but already now trading is again conducted around 1.3440. Demand in stock more…

Euro Burst through the Channel, but Yet Has to Struggle to Keep its Positions

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro kept rising on Thursday. Since the start of the week it has already gone up to 1.2950 from the desperate 1.2620. In general, the positive sentiment was supported by well-bid auctions held in the countries enjoying a special interest of investors. Germany, Spain, France and EFSF as well were checking the market appetite for their securities. Demand proved high and yields – lower than during the similar auctions at the end of the year. But it would be really interesting to know what role the ECB played in these cases.  Interestingly, the EUR/USD was moving up almost invariably, which more…

Finally European Leaders Have Turned Their Eyes on Labour Market Issues

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency fell to 1.2662 yesterday, which is 5 points below the previous local minimum. These sales were caused by a number of reasons. First, data on annual estimates of GDP growth in Germany were released yesterday. Although they coincided with the forecast of growth by 3.0%, a more detailed statistical analysis has suggested that German GDP declined by about 0.2%in the fourth quarter. This signal is not a favourable one, as Germany was often the engine of growth. In addition, there came out the final data on Eurozone GDP for the third quarter. The statistics were unexpectedly revised lower. more…