USD’s across-the-board rally

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency keeps falling against the dollar. The governors of the world’s global CBs in their speeches only emphasized the divergence between the US and EU policies, whereas Madame Yellen was less mild about the monetary policy prospects mainly due to the rather favourable employment statistics in the recent months. Of course, here we should take into account that the strongest data were on the employment/unemployment rate, while the earnings growth and participation rate were obviously far from perfect. But this way or another the EU affairs are much worse. If the US unemployment shrank by 3.8%, the EU one more…

Fed is the only one to deter USD’s powerful rally

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s economic statistics from the USA supported USD’s growth. In accord with the preliminary estimate, the GDP grew by 4.0% annually after the decline in the first quarter had been revised to 2.1%. Thus, the decline in the first quarter proved to be less deep than reported a month ago (2.9%) and the further growth more than made up for the dreadful beginning of the year. Such a disposition allowed to think that the Fed doesn’t need to hurry with a sharp revision of the growth outlook for the year. In its turn it suggests a possibility of earlier toughening of more…

EUR moved away from the extremums

By GG Analyst in Reviews 0 Comment

EUR/USD

In the absence of important news players tried to take profits from the preceding growth in the pair. Because of that the pair moved away from the extremums and hit 1.3900 this morning. Today the markets will be focused on Draghi’s speech at the press-conference after the rate decision. It’s quite possible that we will hear again about readiness to act and that the continuous low inflation will be pernicious for the economic growth. Not only the market participants, but also journalists of every stripe and colour have been long in the know about this chapter of economic theory and as more…

In anticipation of a pullback

By GG Analyst in Reviews 0 Comment

EUR/USD

On Monday the single currency was under a moderate pressure, caused by Draghi’s promise to ease the policy not only in case of weak inflation, but also if the euro remains expensive. It’s quite logical as growth of the rate ensures inflation slowdown in the future and it happens with a certain lag, leaving space for maneuver. The most important thing is to use it in good time. Anyway, the euro remains under pressure. Governor of the Bank of France Noyer said yesterday that the ECB is ready for easing if inflation stays low for too long. Such statements from the more…

ECB is ready for unconventional steps, but will hardly take them

By GG Analyst in Reviews 0 Comment

EUR/USD

ECB is ready to take measures not to let the period of extremely low inflation continue. We keep getting messages regarding this. Liikanen, mentioned yesterday, again spoke about possible introduction of negative interest rates to punish the banks, which park money at ECB and don’t issue loans to business and households. Draghi also didn’t specify anything yesterday, promising to ‘do whatever it takes to ensure price stability’. It’s important that Draghi and even Germany’s Weidmann mentioned quantity easing and negative interest rates among the considered measures. The market has already heard something like that before and it’s been long observed that more…