Fewer and Fewer doubts: QE will kick off in September

By GG Analyst in Reviews 0 Comment

EUR/USD

How capricious the markets are! On Friday Bernanke expressed his grave concern about the current state of affairs in the labour market. In fact, formally this sphere is hardly the most troubled one in the USA. So it is just a political trick, a kind of attempt to inject another portion of adrenalin in the economy before the elections. It is meant to assure electors that the present government has done enough to stimulate the economy and is now busy with other, more understandable for the electorate, issues instead of rescuing the banks or housing market, which makes less than 10% more…

Money, welcome to the market

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke speaks in Jackson Hole today at 14.00 GMT, however the markets have already fallen just to keep on the safe side. We can’t say that there is some stunning news for the USA or extremely bad news for Europe. More likely, the markets have arrived at the same conclusions about the coming data as we did yesterday. Forex received a strong impetus towards the growth of the dollar. The euro/dollar slumped from 1.2550 to 1.2485. Of course, in the period of normal market activity we wouldn’t notice this movement, but yesterday’s drop looked really striking against the background of slack more…

Wearied after the rally

By GG Analyst in Reviews 0 Comment

EUR/USD

Last week abounded in heavyweight economic events, and the current one promises to be even more nervous. Draghi pledged to do his best to protect the euro. Already on Thursday he will have this opportunity when announcing the decision on the ECB’s monetary policy. Now the most probable turn of events is that the CB will buy bonds of ESM/EFSF. However, there are a few forecasts that suggest the rate cut. It’s worth mentioning that the cut of the official bank rate will lead to the negative rate on the ECB’s deposits. This means that the banks will have to pay more…

Chinese incentives are to benefit EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

On Monday the markets managed to extend correction. The most reassuring thing is that the correction was performed simultaneously in different markets. In the previous review we mentioned that the growth of the euro against the background of the falling stock markets is nothing but a mere technical bounce. However, yesterday the demand for risky assets was supported in the stock markets as well. The American exchanges posted the largest growth in two months, speculating on the expectations that China is heading for a new wave of incentives. It looks as though the politicians of the Celestial Empire were afraid themselves more…

Bernanke calls on banks to increase their capital buffers – markets don’t like it

By GG Analyst in Reviews 0 Comment

EUR/USD

On Monday evening markets started to recoup the losses suffered on poor employment data from the US. And since chances of the monetary policy toughening in the US diminished the dollar began to decline. The payrolls themselves were minutely described in our yesterday’s review, so we are passing over to other news. This night in Atlanta Bernanke made a speech in which he mentioned about the necessity of bigger bank capital buffers. This statement was quite alarming for banks and has already led to heavy losses of their stocks. Yet, Bernanke was his usual self, i.e. quite gentle, as he made more…