The USA is on its own

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro is being gradually sold. At the same time stock markets are not the best benchmark as the main cause of the pressure on the single currency consists in the renewed fears for the sovereign debt crisis. Peripheral bond yields are again on the rise due to the increasing problems in the banking sector, which is under the threat of toughening of capital adequacy rules. Yesterday’s comments of Draghi, who said that the ECB was far from completing the cycle of the soft monetary policy. It was quite a logical statement for the head of the CB of the region more…

Don’t scold Japan for no reason

By GG Analyst in Reviews 0 Comment

EUR/USD

The dollar has been falling intensely for the recent three weeks, and the last two ones were especially active in this regard. The main reason for that disfavour towards the dollar was seen in a stream of poor news releases, which forced the markets to reconsider the date to start the stimulus rollback. We expected (and continue to expect) that weakening of the dollar will be limited as the major rivals of the US currency (EUR, JPY, GBP) are now having bigger troubles with their economies and their CBs are much farther from  starting the policy toughening cycle. Anyway, in the more…

Uninteresting payrolls

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment report is considered to be one of the most unpredictable publications.  The market consensus is generally built on the basis of a great data spread, and the actual data very often differ much from it. Deep down, the forecasts were rather congested and the actual data proved to be close to the average market expectations. The release showed that employment grew by 175K against the expected 167K. The same with employment change in the private sector- it proved to be 178K against the forecasted 175K. The data were good enough to believe in the normal pace of growth more…

Enjoyed the rally? Probably, it’s not the end

By GG Analyst in Reviews 0 Comment

EUR/USD

Did you like it? Several factors coincided at once to provoke heavy selling in the dollar, which only in EURUSD resulted in a move of 270pips from the daily low to the daily high. Moreover, having risen from 1.3090 to 1.33 for less than five hours after Draghi’s speech, at night the single currency was consolidating at 1.3340, it means traders have gathered their profits and do not hurry to purchase dollars. Let’s look into the reasons. First of all, during the day the US currency was gradually weakening as a result of the preceding poor statistics, which reduced the likelihood more…

Is USD up for a reversal?

By GG Analyst in Reviews 0 Comment

EUR/USD

On Tuesday the single currency stalled on the way to 1.31. Thanks to other instruments  the US currency strengthened its positions a little bit. Anyway, the dollar index (DXY) is moving away from its extremums, which it reached at the end of the previous month. Yesterday it was by 2.5% below the highs, hit on May 23. We have more and more doubts that the dollar will resume growing in the near future. For about a year the index has been in the uptrend, yet the latter has been running in waves. We should take into consideration that another tide of more…