Labour market: limping recovery

By GG Analyst in Reviews 0 Comment

EUR/USD

It is quite often the case in the financial markets when bad means good. That’s what we saw on Friday when poor payrolls aroused optimism in the stock markets and increased demand for risk in the neighbour markets. Yet, under such circumstances it makes sense to believe that such optimism will be short-term, but it is still doubtful as now we have information that the situation with the US economic growth is not as good as presumed by optimists. Friday’s employment statistics showed that the number of jobs had grown by 169K against the expected 178K.Yes, the difference is not very more…

Draghi put pressure on the euro, Carney failed to put pressure on the pound

By GG Analyst in Reviews 0 Comment

EUR/USD

ECB chief Mario Draghi made it clear that he remains dovish at yesterday’s press-conference after the rate decision. When commenting the decision he pointed out that the Bank is ready to take action in case of need. These words gave rise to selling of the euro as traders had expected more optimistic comments after a series of positive data. However, Draghi explained that a couple of positive PMIs, which have just entered the positive territory, doesn’t imply large-scale growth of activity and doesn’t affect the Bank’s forecasts on the EU economy. Also Draghi is right repeating that he will keep the more…

EUR: sucked down in the bog

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is sinking deeper and deeper in the bog. It is remarkable how systematically and gradually the pair is being pushed down. Apparently, capital movement is going on at the level of structural changes in the plans of investors. It means that inside the market behind such little movement of rates stands really big money. And this money wants to sell the euro rather than affect the currency rate. The single currency still has to deal with one important level, that is 200-day MA, which is now at 1.3140. The market touched this level, but quickly bounced off it. more…

Impudent bulls and bears

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday bulls and bears were again measuring their strength against each other, trying to budge EURUSD. Either the parties were equally strong or they were not willing to continue the fight, but after a steep drop the pair in a while returned to the previous levels. Impertinence of bears showed itself when they intensified their pressure on the euro right after the release of relatively good news from Germany. The Ifo statistics indicated growth of the Business Climate Index to the highest level over the last 16 months and, therefore, exceeded expectations. In August the index has risen to 107.5 against more…

USD is up against the developing currencies and Aussie

By GG Analyst in Reviews 0 Comment

EUR/USD

As could be expected, trading crossed the bounds of the narrow range, thus arousing strong volatility in the currency market without any particular reason. The euro purchases had led the pair from 1.3320 to 1.3450 by the beginning of the active US session.  Thus, the pair entered the area of half-year highs, going beyond the peak of June 19, which made 1.3420. It is also remarkable that this movement was not immediately followed by a retracement. Up to now trading is held above 1.34, which speaks about strength of the bulls and inspires hope for further growth. Anyway, the picture may more…