Tapering may start already before the year end

By GG Analyst in Reviews 0 Comment

EUR/USD

Well, after all Obama has nominated Janet Yellen to head Federal Reserve. This news is not surprising as already for several weeks Yellen has been considered to be the most probable candidate for the post. The markets’ attention was riveted on a different event – the publication of FOMC’s September meeting minutes. As you remember, then the size of the bond-buying programme was kept unchanged despite the warnings about readiness for gradual stimulus rollback. The minutes point out that the Committee sees the need for this measure already before the end of the year. So, it’s all small wonder. Bernanke’s caution more…

Important levels

By GG Analyst in Reviews 0 Comment

EUR/USD

Passions are rising. Stock markets displayed their inner nervousness, flinging down out of the slack downtrend. At the end of the US session the stock exchanges showed a decrease by about 1.5% from the intraday highs. Investors regained self-possession already during the Asian session, when the quotes stabilized. As has been often the case recently, the currency market behaves in a different way. The bulls tried to swing EURUSD, which was seen in two attempts to grow to 1.36 late on Tuesday and early on Wednesday. The bulls obviously sought to launch a counterattack to take the pair farther away from more…

Every which way

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s not easy to characterize the market reaction when there are neither economic nor news releases. Monday was one of such days. Anyway, there were some things happening under the surface. Risk aversion at the end of trading in the USA provoked falling of stock indices down to the lows since the beginning of September. It is remarkable that the correlation between stock indices and currency markets has completely disappeared. EURUSD is living its own life – yesterday it hit the low of 1.3542, but soon returned to 1.3570 and was trading there for the most part of the day. Those more…

Dissolving of the government shakes trust in USD

By GG Analyst in Reviews 0 Comment

EUR/USD

If in the first hours and days after the deadline the US dollar didn’t suffer much pressure, now it is obviously getting in the downtrend. It is especially clear against appreciation of the single currency. The thing is that the euro is supported by the fact that the political crisis of the Italian government has been resolved. Berlusconi’s party supported Premier Letta in the vote of confidence, which occurred under pressure of the party and its leader. Besides, Obama himself makes the situation tenser. In the political game against the republicans he reminds that further delay in the budget adoption decreases more…

Draghi isn’t anything like he used to be

By GG Analyst in Reviews 0 Comment

EUR/USD

Having stopped consolidating, EURUSD has moved upwards. The pair is testing 1.3600 now, which hasn’t been seen since February. Honestly speaking, it is somewhat against our expectations as lately we’ve observed mainly worsening of the released statistics. This has allowed us to suppose that the growth impulse is dying. Anyway, yesterday traders’ attention was all focused on Draghi’s speech, in which the ECB’s governor didn’t say a word about the need for measures to improve lending in the region. The euro grew on such claims as before that the CB’s members had expressed their readiness to take such a step. Yet, more…