The broken attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment statistics proved to be favouable, though all the short-term growth potential of EURUSD had been “eaten away” by the market movement a day before. As a result, the dollar bulls failed to bring the pair below the lows of the previous day, yet the decline from 1.3435 to 1.3312 can hardly be called unimpressive. So, what was good about the employment statistics? First of all, the number of new jobs in October exceeded 200K (204), moreover the rates of the preceding two months were also revised up. Thus, the average rate for the last three months is also more…

Fast and furious Draghi

By GG Analyst in Reviews 0 Comment

EUR/USD

Draghi, who yesterday celebrated the second anniversary of his tenure as president of the ECB, acted in a very unexpected way. The ECB lowered the refinancing rate by 25 basis points to 0.25%. The deposit facility rate was kept unchanged at the zero point. The interest rate was also cut by 25b.p. to 0.75%. At best the governing council was expected to have given some hints at taking action in a month or to have announced liquidity support through other tools of the ECB. Draghi again proved to be more maneuvering than considered by many. At the press-conference he pointed out more…

The market froze expecting Draghi and US stats

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex in general and EURUSD in particular are still in the standby mode, all waiting for Draghi’s commentary to the decision of the ECB’s governing council and for the release of the US GDP for 3Q and of unemployment claims, which can help to determine the trends of the labour market before tomorrow’s payrolls. The consensus forecast of economists doesn’t speak about changes in the refinancing rates and the deposit facility rate, but the community is waiting that Draghi will point out some measures to normalize liquidity in the banking sector of the region, as the latter is stalled getting ready more…

The need and chance for easing by ECB

By GG Analyst in Reviews 0 Comment

EUR/USD

On Friday USD purchasing continued and only on Monday we could see some stabilization. However the latter had been preceded by a serious attack on the euro during the Asian session, due to which EURUSD had tumbled down to 1.3440 at some point. It happened on reaction to the words of FOMC’s Richard Fisher, who criticized the US government for impeding the recovery. Anyway, the single currency found strong support at the level of its 7-week lows. The thing is that the pair has been purchased more than once at 1.3470 since the end of September. Later the pair stabilized at more…

EUR fell in anticipation of the rate cut

By GG Analyst in Reviews 0 Comment

EUR/USD

Such strong fluctuations in the euro aroused by inflation stats haven’t been seen for long. Inflation at 0.7% y/y in the eurozone (against the expected 1.1%) made EURUSD drop by about two figures. By now EURUSD has declined to 1.3539, taking into account that Thursday’s high was at 1.3738. Undoubtedly, selling of the euro coincided with the period of the dollar’s appreciation at the beginning of the day, but then the decline was getting momentum on its own. The low inflation rates, which were observed both in strong Germany and weak Italy, enabled large investment banks to expect that the ECB more…