Stock and Forex markets are in disharmony

By GG Analyst in Reviews 0 Comment

EUR/USD

The last day of the month wasn’t very lucky for the stock exchanges. Players decided to gather their profits and were eagerly selling stocks. However, it wasn’t an obstacle for S&P 500, which demonstrated the highest monthly close in history and all in all seven months of growth. It is remarkable that in the meantime there was a real fight between bears and bulls in Forex. As could be expected, the latter didn’t hurry to abandon 1.30 and spared no effort to help the pair consolidate lower. Over Friday the pair first fell from 1.3050 to 1.2950, but at the end more…

Bulls seek to close the month above 1.30 in EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

Instead of the expected growth the US dollar demonstrated a decline yesterday. It’s remarkable that EURUSD managed to get above 1.30. If the pair consolidates at this high, by the beginning of the week and the month we will get the rate above the important psychological level and above the 200-day MA. This disposition can arouse a considerable purchase interest. We still have doubts about the further growth, having in mind the US and EU fundamental indicators, but are less sure that this scenario will develop in the near future. As this week has showed, the US dollar does not necessarily more…

Rebellion of EU currencies

By GG Analyst in Reviews 0 Comment

EUR/USD

The sudden and ungrounded surge of European currencies (EUR, GBP, CHF) against the dollar should be treated as nothing more than ousting of bears from the market. It can be also called the last-ditch fight of the bulls, who summoned all strength to reverse the situation. But as practice shows, very often yesterday’s bulls turn out to be tomorrow’s bears, so these are the same big players, gaining liquidity for further attacks. Why are we so sure? The thing is that there was no reason for purchasing the euro. The only important event in Europe yesterday was the release of German more…

The US consumer sentiment helps the national currency

By GG Analyst in Reviews 0 Comment

EUR/USD

The scenario we described earlier is coming true. Instead of following the risk on/off principle, the currency market is moving on the difference of economic and monetary policy forecasts. The first scenario, which dominated before the crisis and the first years after it, presupposes weakening of USD against the background of stronger global economic growth. Very often the US statistics serve as the main sign of such strengthening and the major driver. Now the situation is a bit different. Strengthening of the labour market, growth of stock indices and multiyear highs of Consumer Confidence Index don’t let you automatically consider the more…

EUR again failed to break through 1.30

By GG Analyst in Reviews 0 Comment

EUR/USD

On Friday the single currency came up against the resistance at 1.30. The pair once again failed to pass this key level, so we are still staking on the bearish scenario of events. While the United States is about to start a cycle of the policy toughening (now it concerns only the stimulus pullback), Europe is still in limbo – the situation is mainly influenced by exterior factors here (affairs of the USA and China). Europe is unable to get out of recession on its own. It’s sad that this situation is already treated as normal. Germany’s final GDP for the more…