Cuts won’t hurt

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is in demand now,  yet remains at 1.3050, the low hit early this year . At this level the pair was trading in the first days of January  and returned there at the beginning of the week on disappointing results of the Italian elections. As has already been mentioned, the pair is more likely to grow than fall in the long run, however in the near term it is still possible that 1.30 will be tested. Apparently, it is an important stage in the struggle between bears and bulls, which will determine the further fate of the pair. more…

Buy it if you dare

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke spoke again to the Congress and for the second time confirmed his adherence to the bond-buying policy. Traders have caught at the phrase that the size of asset purchases can grow as well as decline. The markets , which see only what they want to see, got ablaze with the hope for the possible increase in the programme, should fresh signs of economic slowdown appear. Here we should also note that Bernanke and his team intend to rev up if the GDP growth rate goes below the trend one. Yet Germany insists on  stopping bond purchases immediately after the situation more…

Bernanke knows how to support the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke said everything that was necessary to inspire confidence in the markets. At times it is very difficult to understand whether he got into the markets’ trap ( as just a day before he delivered his speech the markets had suffered the sharpest decline in the last few months) or really remains ultra-dovish, though his policy is somewhat warped in some markets. So, Ben Bernanke, delivering a semiannual testimony before the Senate Banking Committee, pointed out the necessity to preserve the stimulating course of the monetary policy. It dispelled the fears which arose after the FOMC’s meeting minutes in January. The more…

G20 didn’t dare to name the shame

By GG Analyst in Reviews 0 Comment

EUR/USD

G20 is a dog that barks and doesn’t bite. The joint statement pointed out that the countries would abstain from competitive devaluation of their domestic currencies. Anyway, the states do have some space for maneuver since they are not forbidden to carry out quantitative easing and increase expenditures to support growth of their domestic economies. Actually, that is what all were after when expanding their currency reserves. Thus, the fears that Japan’s politicians would be shaken a finger at and that the Fed would be more cautious proved to be groundless. All this is a good stimulus to ease tension in more…

The bears attack

By GG Analyst in Reviews 0 Comment

EUR/USD

Triggering of stop-orders in EURUSD drove the pair to 1.3519 yesterday, but at these levels sellers entered the game. As a result, the daily close was slightly negative, 1.3450, but now we can observe some growth in the dollar, which pushed the rates even lower, to 1.34. In the charts we see that yesterday’s reversal is absolutely identical to the situation on February 7. The same downward wave took the pair from 1.357 down to 1.335. If this time the decline is of the same scale, we may see EURUSD somewhere between 1.3250 and 1.3270. Yesterday’s upsurge of the single currency more…