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…

America’s slowing down even without cuts in public spending

By GG Analyst in Reviews 0 Comment

EUR/USD

Signals of economic activity subsidence after a slight surge in spring keep coming from America. Following the decline of new home sales (by 13%), goods orders also sharply decreased. This index lost 7.3%, which is twice as much as the expected correction of 3%. Besides, the growth rate a month ago was also revised down. All in all, yesterday’s drop crossed out more than half of increase in goods orders over the preceding three months. In connection with these statistics the following question inevitably comes to mind: weren’t the data on acceleration of the US economic growth in the first half-year more…

US housing market: everything okay?

By GG Analyst in Reviews 0 Comment

EUR/USD

New home sales in the USA dropped right by 13.4% in July. That unexpectedly sharp decline gave rise to dollar selling in the second half of Friday’s trade. EURUSD flew up by half a figure to 1.3400. That was the third attempt to break through that level for the last three weeks. The first attempt was in the first decade of August – then the pair just touched that level. And the other two tries took place last week, yet each time the pair failed to consolidate above those levels. At the moment trading is held at 1.3380 and the pair more…

Fierce fight of bulls and bears

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday was marked by an interesting fight between bulls and bears. The dollar has a good chance to grow due to the coming stimulus rollback by the Fed. At the same time, the single currency is also getting some good news. The preliminary PMI rates for the largest countries of the eurozone proved to surpass the expectations and grew against last month’s rate. Manufacturing PMI for the whole eurozone hit 51.3, but the biggest contribution was made by improvement in Germany, where that index rose from 50.7 to 52.0. However, these rates (exceeding expectations, by the way) failed to prevent the more…

The Fed is ready for the stimulus rollback

By GG Analyst in Reviews 0 Comment

EUR/USD

Those, expecting that the FOMC’s minutes would make things clearer, must have been utterly disappointed yesterday. The minutes didn’t contain any obvious signals of the stimulus rollback in September. The members of the Committee have different views on the future of the Fed’s policy. We should understand that the meeting was held before the release of August’s employment statistics, which have strengthened the beliefs that the economy  needs support less and less.  The improvement in unemployment claims lets market participants hope that the Fed’s members, which have doubted better economic growth, will become more confident about it in mid September. Despite more…