Expectations are the first and foremost

By GG Analyst in Reviews 0 Comment

Waiting

EURUSD

The influence of strong indicators of the labor market from the USA, issued on previous week, did not keep for a long time. On Tuesday, markets again tended to sell dollar. Eventually, by Friday the pair EURUSD reached 1.1250, getting back to the local lows of August. The released statistics calls our attention to the decline of labor efficiency in the USA and the simultaneous increase in expenses for the workforce. That is the evidence of hiring new employees by the companies. The efficiency grows when they fire people and replace them by programs. Therefore, the decrease is not such a more…

Dominance of downtrends

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Bears

EURUSD

Friday payrolls from the USA appeared strong. It is important to mention that not only employment increased but either wages growth accelerated. Thus, all together those indicators shifted expectations what gave the powerful impulse to buying USD against most currencies. For EURUSD this strong data resulted in a big drop of 110 points and in a support level a bit higher 1.10. At the beginning of the new week the pair was traded around this level, reflecting the traders’ search for new impulses. Trade has been consolidating around 1.10 since the end of June. As well the pair is traded currently more…

Bearish oil market and USD trend formation

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Oil & Dollars

EURUSD

The previous week became quite productive for the pair. On Wednesday, after FOMC comments, the American dollar got under pressure. Despite of the fact that the committee mentioned improvements in the economy and risks decline in the nearest perspective, the comment did not include anything about rate increase next time, as it was done last October before they raised the rate in December. They just made a standard comment about readiness to make it on any of the next meetings. But definitely this is not the sign for the tightening in the nearest future. Either the members of Federal Reserve have more…

Pound is very attractive without Brexit influence

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brexit

GBPUSD

The British pound has gained strongly since last Thursday, when the supporter of EU membership was murdered by Brexit fanatic. Bookmakers and traders increased their bets quickly thinking that Brits would not like to leave EU. Such estimation is close to reality so far, however, it is too early to talk about final turn. Probably, markets will experience several volatility splashes of British currency during the week.

For those who consider to aсquire the British currency or the country’s assets as a whole, the current rate of the British currency involves very appropriate momentum to buy it if the country stays in more…

Preview: 4 decisions of Central Banks and no changes

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Currencies

EURUSD

During the first half of the week the USD was influenced by the extremely weak payrolls from the USA. Moreover, on Monday Yellen totally destroyed the bulls hopes for the rate raise in June. She announced again the cautiousness that should use the Federal Reserve while the making rate decision. Hence, we should not worry either about unexpected policy tightening next week. As well FOMC forecasts about rate and economy growth remain uncertain. They may again reconsider GDP expectations to the decline side. As per the rate forecasts the uncertainty is much higher.

Weekly unemployment claims, released at the end of the more…