Why the Fed should by tougher

By GG Analyst in Reviews 0 Comment

EUR/USD

The US inflation stats came as an unpleasant surprise for the dollar-bears yesterday. It turned out that consumer prices in May grew by 0.4%, which is twice as much as expected. The annual inflation instead of staying at 2.0% grew to 2.1%. Of course, it is too early to speak about the radical change of the situation, however now the Fed surely has less space for maneuver. In accordance with the classic economic rules, increased consumer activity has led to faster price growth. Apparently, in the coming months we’ll see much of this. The seven meager years after the subprime mortgage more…

Abe’s third arrow

By GG Analyst in Reviews 0 Comment

EUR/USD

Though the beginning of the day was far from good, the single currency nevertheless grew against the dollar in the course of the day. This morning a fresh tide of growth helped the pair go up to 1.3586. It is a bit above the high set at the end of the previous week, which speaks about bulls’ success in winning back their positions. Their morale should be boosted by the hints of different ECB’s officials at scanty chances of further steps from the Bank.  We hear hints that the ECB will resume bond purchasing to its balance sheet at the very more…

Soft pressure on the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is trying hardest to catch at 1.36. Yesterday it slipped from 1.3668 to 1.3585 in the course of the sluggish EU session. The only thing which prevented it from further  decline was strengthening of risk demand that was supporting the US exchanges. Whatever skeptics say about the minimum effect of the ECB’s measures on the euro, it still exists. In the currency market the rates have shifted from the euro to the dollar, so in the quiet market we see prevalence of gradual  euro selling in favour of the US currency. The latter will function more as a more…

Bulls’ defensive line

By GG Analyst in Reviews 0 Comment

EUR/USD

The revised statistics on the US GDP in the first quarter proved to be even worse than that poor growth rate of 0.1%, which we saw a month ago. The revised data showed that the economy was shrinking at the pace of 1.0%. These data are really poor, yet they were soon diluted by quite favourable employment data. The weekly unemployment claims decreased to 300K, which is much better than the expected 321K and the preceding rate of 327. The continuing claims are still in the downtrend, making now only 2631K. This unemployment downtrend was exactly that very factor, which outweighed more…

EU currencies get support from stock growth

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s growth of stock exchanges helped the single currency in thin trading. While the main capital markets (Britain and the USA) were closed, stock index futures were attacking the new highs. Thus, S&P 500 not only managed to set a new record at 1900, but also to close out the day above that level. In the meantime, the technical analysis shows that this indicator is overbought. Strictly speaking, it doesn’t promise an immediate reversal at these levels. So those who play against the market should be more careful. The current position of the index urges to look out for the moment more…