Outlook for 2014: The time of shocks is over

By GG Analyst in Reviews 0 Comment

EUR/USD

Let’s outline the prospects of the major currency pairs in the coming year. The euro performed well in the last quarter, considerably appreciating against the dollar and the yen. Even against the sterling its decline was not as strong as it could have been. And if we include here the rate cut by the ECB in November, the current strength of the single currency looks really mysterious. We think that EURUSD is getting support from the EU banks, which store liquidity on their balance sheets to get stronger by the time of stress tests. The improved sentiment indicators in the region more…

Forex is getting quiet after strong fluctuations

By GG Analyst in Reviews 0 Comment

EUR/USD

Quite naturally the single currency was suffering losses in the second half of the previous week. It was a result of the Fed’s decision to cut the monthly purchases by $10bln to 75bln. Eventually, EURUSD fell from 1.3810 to 1.3620. It seems that at that level players were purchasing the single currency within the bounds of a short-term profit taking. The previous week was the last full week of the year. This week the market liquidity will be limited before the holidays and right after them in the expectation of New Year’s Day. The end of the last week, when the more…

All attention to the stats

By GG Analyst in Reviews 0 Comment

EUR/USD

Monday’s selling interest was not spurred yesterday. The market is back at the week’s opening level. However, all the attempts to consolidate above 1.3600 proved to be futile. The pair rose as high as 1.3613 and rolled down below 1.36 while the Asian stock markets were going through a correction. The stock exchanges went into profit-taking after reaching the six-year high in Nikkei and the US stocks continued to decrease as expectations in regard to QE had been revised. This is what we have been preparing you for so long. The US central bank, in theory, can cut the volume of more…

It’s all the opposite in Forex

By GG Analyst in Reviews 0 Comment

EUR/USD

The first trading session of December was marked with heavy pressure of the dollar. The attempts of the single currency to consolidate above 1.36 stumbled over selling pressure. It’s remarkable that the news coming from the eurozone was not bad. The final releases for some countries and the single estimate for others either exceeded the expectations or met the forecasts. Spain was a small exception – its manufacturing sector shrank unexpectedly (the index fell below 50 to 48). Anyway, as earlier the poor EU statistics didn’t prevent the single currency from growing, so yesterday the relatively favourable data didn’t interfere with more…

The unstoppable pound

By GG Analyst in Reviews 0 Comment

EUR/USD

On Friday trading was mainly held within a very narrow range. The only exception was when EURUSD tumbled down by 20pips in the first hours of the US session. This movement was false as it occurred only because most traders hadn’t entered the market, taking another day off after Thanksgiving. The pair returned to Friday’s levels, that is 1.3600, just over a couple of hours after the Asian session had begun. This week promises to be very eventful. Both the ECB’s meeting and the US employment statistics are scheduled for it. These two events have been provoking the strongest volatility recently. more…