It is definite now: Federal Reserve will not raise the rate

By GG Analyst in Reviews 0 Comment

FRS building

EURUSD

During last week, the pair was going up, coming off slowly from the support line of the wide uptrend channel since last December. If we look to the pair movement through this channel, we can notice that movement in May was indicative (two previous movements took almost the same time) and fast movement from its upper boundary to the lower. However, the probability to break the support of the uptrend channel was quite big.

At least Federal Reserve members were helping it a lot, showing, one after another, that possibility and necessity of a soon policy tightening exists. Still market participants were more…

Brief moment of simultaneous growth of the markets and the Dollar

By GG Analyst in Reviews 0 Comment

USD rising

EURUSD

The current week is after dollar, regardless of the fact that half of the time USD was retreating. The week before, market participants received many signs from the Federal Reserve members about rationality of the sooner policy tightening, but the dollar’s rally was not considerably strong, based on their warnings. The markets were waiting for such announcements from Yellen. Her Friday speech before long weekend attracted more attention in the situation without other important releases. And she said what she had to say: without stating specific dates, she notified that she is tending towards soon rate raising. Her speech pushed dollar more…

Federal Reserve is preparing markets for the interest rate increase

By GG Analyst in Reviews 0 Comment

FRS

EURUSD

Last week the Federal Reserve members performed active campaign for changing of market expectations about interest rates. Fed Reserve representatives referred that market volatility calmed down in comparison with the situation in the beginning of the year, while more economic indicators came to the normal levels. Moreover, April FOMC minutes have reflected either that the Committee is seriously considering the rates increase in June. We would like to mention that previous data, possessed by the Committee, were much worse than those noticed during last weeks. Simultaneously, Federal Reserve is observing foreign financial markets cautiously watching out for volatility.

They do not say more…

Dollar is looking for the bottom

By GG Analyst in Reviews 0 Comment

Dollars

EURUSD

American dollar continues to pull back and now this looks like capitulation. Its decrease identified against most assets, while USD index lost around 1.2% for more than last 24 hours, reaching the main support levels. The bulls may upset by the fact that coming news is not making favor for American currency. Advance GDP, released yesterday, was worse than expected. The first three months got 0.5% yoy against expectations 0.7% yoy. This is hardly visible 0.1% in usual for us estimation. Contrary to this growth of European economy reached 0.6% as released by Eurostat today. Though, the expected growth was only more…

Dollar returned to an important support

By GG Analyst in Reviews 0 Comment

USA

EURUSD

Fed Reserve comment on monetary policy has evoked volatility splash but eventually did not bring any significant shifts in a trend since the pair continued its smooth growth along the trend from the beginning of the week. As a whole the comment could support American currency since it excluded any concerns about global finances, but was mentioned that income growth would support inflation and bring it closer to its target in a medium-term. Moreover, Fed Reserve mentioned acceleration of real income that, combined with the effect of deflation, will boost eventually inflationary trend. In our opinion, the enclosed announcement contained enough more…