Yellen stopped growth in EUR, but not in the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency didn’t venture to attack 1.37 on Tuesday. Growth was impeded by the market’s anticipation of further tapering by the Fed. It’s noteworthy that Yellen’s claims were quite reserved and generally in line with the traditions of the obscure rhetoric acquired by the Fed’s presidents.  She remarked that should the recovery go on at a forecasted rate, the QE will be curtailed with the current pace (by 10bln monthly). In the meantime, stock traders took her comments optimistically, getting themselves into eager selling. Since the beginning of February the market has recouped three fourths of the losses incurred at more…

EUR is a step off 1.37

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar keeps depreciating as demand for risky assets is growing. As before the risk demand spurs across-the-board depreciation of the dollar and renders great support to commodity prices. EURUSD managed to get above 1.3650, where from it slipped down at the end of January. Then the pair felt pressed due to expectations that the ECB would soften the monetary policy considering inflation easing. As it turned out, all in vain. The ECB doesn’t seem to hurry with easing of the monetary policy, referring to improvement in the performance of the eurozone. Moreover, one of the main threats of the more…

EUR is among safety assets

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the stock markets suffered a hard blow. The worn-out exchanges of the developing countries were knocked down. Most of them lost more than 2% over the day. Now we have quite an unpleasant situation on hand. The US Fed ignored the warning signals of the slowdown in the business activity and cut the QE programme last week. Thus, the markets are now sure that the only thing which can prevent the Fed from taking a similar step in the future is utterly disappointing statistics from the USA. Against this background the US investors, anticipating further cuts,  very painfully reacted to more…

It’s all USD’s fault

By GG Analyst in Reviews 0 Comment

EUR/USD

The pair got support on the strong stats from Europe and relatively poor data from the USA. Yesterday’s PMI helped the single currency get off the lower bound of the range, forming since the beginning of the week. The index pointed out strengthening of business activity in the eurozone. And what’s important not only in Germany, but also in other countries. But afterwards dollar bears fastened on the continuing claims index, which has been on the rise for the last three weeks. Except for one week in July, distorted by the holidays, the last time unemployment claims exceeded 3.06 million was more…

Friday’s fall of the dollar – is it a signal?

By GG Analyst in Reviews 0 Comment

EUR/USD

The upward move, which we described in our Friday’s review, was just the beginning of the drama that developed further. The single currency didn’t have a single black candlestick till 13 GMT, closing positive all the time. As expected under such conditions, the following upsurges were stronger than the preceding ones. The pair got exhausted already at 1.3891. By then it had already made 70 pips in one direction and almost 30pips in the opposite one over 15 minutes. Technically, these are the highest levels since late 2011. And from a strictly technical point of view, Friday’s move opens the way more…