Slight attempts to rise

By GG Analyst in Reviews 0 Comment

EUR/USD

The exchanges, especially the Japanese Nikkei, have slightly moved off yesterday’s lows, recovering from the heavy selling. Once again it supported such EU currencies as the euro and pound. Yesterday right after the release of the US statistics EURUSD rose to 1.2950, now it is trading a bit above 1.29. Our scenario of a grand downward reversal of the markets hasn’t developed yet, but it is obvious that there aren’t anything that would arouse growth. The fears, connected with the release of the EU preliminary PMI, haven’t realized as most of the published indices proved to be better than expected. The more…

Bernanke: a dove with a hawkish beak

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke and FOMC’s meeting minutes arranged a roller coaster attraction for the markets yesterday. Since the speech of the Fed’s head to the Congress was the main event of the day, before it the markets had been quiet, gradually selling the dollar and purchasing income assets (now probably only stocks belong here). The US currency started falling more intensely when Bernanke mentioned that if the stimulus was curtailed too soon, it might hamper the labour market. The stock market hit new highs and EURUSD shot up to 1.30. However, it failed to consolidate there as then followed an avalanche of selling, more…

Premier being introduced, EUR breathed a sigh of relief

By GG Analyst in Reviews 0 Comment

EUR/USD

The European currencies are not going to yield without a struggle. Last night both the euro and the pound were doing well against the dollar, but for different reasons. Let’s have a closer look at them. At first sight it looks really surprising that amid the growing fuss about the possible rate cut by the ECB next week and also almost right after the release of disappointing statistics on the business activity (PMI, ZEW, Ifo) the euro is able to demonstrate growth. However, it should be taken into account that the rate cut by another quarter of a percent will hardly more…

Sudden demand for risk

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was purchased against the news yesterday. It means that the initial reaction to the poor ZEW quickly turned into purchases of the euro. As a result, the market is now consolidating between 1.3170-80, while a day ago it was close to 1.3040. Apparently, the market is focused on selling the dollar rather than on buying the euro. Indirectly risk demand was maintained by the recovery of markets after the drop a day before. Speaking about the German indicator of economic sentiment, in April it makes just 36.3 against the expected 41.5. It is a cyclic indicator and such more…

Unsteady growth of EURUSD

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro bulls were very close to breaking through 1.31 yesterday. The uptrend in the euro can tell favourably on the demand for debt securities of the EU troubled countries. Another positive fact from the technical viewpoint is breaking through the 200-day MA, which happened last Thursday in the volatile session after Draghi’s speech. Besides, strengthening of the single currency goes in line with our opinion regarding Forex and its cycles. The fundamental data keep us from recommending to stake everything on buying the currency. First of all, we have a continuous uptrend of the US stock markets, which may start more…