Another rise in the hope of the deal

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets were quite brisk yesterday. Behind that again were Obama’s comments on the fiscal cliff issue. The president urges to complete the deal before Christmas. And now it seems quite possible as one of the republican congressmen expressed his support for raising taxes for the rich, but on condition that the tax benefits for those who earn less than $250K a year will be preserved. Such news stopped selling of risky assets. In particular EURUSD dropped as low as 1.2880 and by the end of the trading day had grown already to 1.2960. Now the market is trading in a more…

Reality Bites

By GG Analyst in Reviews 0 Comment

EUR/USD

Encountering resistance from the IMF, the European ministers of finance haven’t come to terms on the Greek debt issue. The EU and IMF have absolutely different views on the future of Greece. The Fund considers that with the current state of affairs the country won’t be able to observe the terms of the agreement (reduction of the debt to 160% of GDP). And in this case the IMF will be unable to issue another bailout tranche to the country. We, just like most market players, expected that the creditors would finally manage to come to an agreement. This didn’t happen. Now more…

Demand for risk is recovering

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro had a hard time yesterday. For an hour it was attacked by a hailstorm of poor news from Europe. The German and Euro-Zone Manufacturing PMIs came out not only worse than expected, but even worse than the previously reported levels, thus reflecting a higher pace of business slowdown in comparison with the last month. So it’s hard not to start selling the euro, especially taking into account that before that many expected a confident recovery. Moreover, one of the most respected business climate indicators by Ifo dropped down to the level of 100, which is the lowest mark since more…

That’s all, Folks!

By GG Analyst in Reviews 0 Comment

EUR/USD

On Monday the euro fell below 1.32 due to the investors’ disappointment in the EU summit. Problems haven’t been solved; all we have now are just pledges to consider a closer fiscal union in half a year – an eternity for a debt crisis! EURUSD is now at 1.3170. It was at 1.3370 at the beginning of Monday’s trading. Moreover, the received comments have once again proved that Germany is not very willing to accept current terms. The fact is that Bundesbank can issue a loan to the IMF only when given the consent of legislators. As follows from the previous more…

Draghi dragged the euro down

By GG Analyst in Reviews 0 Comment

EUR/USD

Mr. Draghi bitterly disappointed the financial world on Thursday. Yes, the key interest rates were lowered by a quarter of a point to 1 percent. But, alas, there’s no “shock and awe” over the troubled countries’ bond purchases. There hasn’t been even a single attempt to play with the laws and find some loophole. ECB is perseveringly sticking to its guns: “We have a treaty and Article 123 prohibits financing of governments. It embodies the best tradition of the Bundesbank. We shouldn’t try to circumvent the spirit of the treaty.” After that statement markets immediately went down and the demand for more…