GBP’s streak of luck is over

By GG Analyst in Reviews 0 Comment

EUR/USD

Set free, that is outside the narrow trading range, the single currency entered the period of high volatility. At the end of Monday the pair soared to 1.3380, but already by the beginning of the EU session it had returned to the preceding levels. The reason for that was Draghi’s determination to apply non-traditional monetary policy measures, which he expressed at the conference in Israel. The pair plunged to 1.3325, but was supported by the bulls and managed to set new daily highs. It’s an interesting case. The ZEW Economic Sentiment came out slightly above expectations, but the pair was already more…

EUR is expecting the Fed’s decision around the local highs

By GG Analyst in Reviews 0 Comment

EUR/USD

The consolidation of EURUSD yesterday eventually ended in with the break through the upper limit of the range, which led the pair to the daily high at 1.3381. Despite the fact that it is a really impressive scale for the move without reason, the bears immediately took it as an opportunity to sell the euro at a higher price. From the end of the New York session till the end of the Asian one the single currency was gradually depreciating. Now the rates are at 1.3350, which can become a good level of support. In the meantime, the market remains sluggish more…

Forex is consolidating before important events

By GG Analyst in Reviews 0 Comment

EUR/USD

USD failed to carry out a full-fledged correction at the end of the last week. EURUSD was fluctuating within the narrowing triangle.  An upward touch occurred at 1.3292 last Friday. At the beginning of the Asian session the pair rose to 1.3356 for a while, but then again retraced to the centre of the range. The main event of the week is the Fed’s monetary policy decision, scheduled for Wednesday evening. It’s quite possible that while there are no drivers Forex will continue consolidating at the achieved levels. Before the Fed’s decision the market can be spurred only by the ZEW more…

Don’t scold Japan for no reason

By GG Analyst in Reviews 0 Comment

EUR/USD

The dollar has been falling intensely for the recent three weeks, and the last two ones were especially active in this regard. The main reason for that disfavour towards the dollar was seen in a stream of poor news releases, which forced the markets to reconsider the date to start the stimulus rollback. We expected (and continue to expect) that weakening of the dollar will be limited as the major rivals of the US currency (EUR, JPY, GBP) are now having bigger troubles with their economies and their CBs are much farther from  starting the policy toughening cycle. Anyway, in the more…

The Fed points out improvement despite contraction in government spending

By GG Analyst in Reviews 0 Comment

EUR/USD

The US S&P 500 keeps suffering losses. Yesterday it decreased by other 1.3%. The stock bulls have a cause for concern. First of all, the ADP statistics proved to be worse than expected, showing employment growth in the private sector by 135K in May against the forecasted 171K. Of course, it’s better than the increase reported in April – 113K (revised down from 119), but it is too little to speak with confidence about steady growth. Anyway, in the Fed’s Beige Book, which was published later yesterday, market observers noted a surer growth, varying “from modest to moderate”, in 11 regions. more…