EUR and GBP struggle further, AUD and JPY capitulate.

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro resists dollar’s pressure. The US currency was appreciating against many assets and asset classes yesterday, but the euro managed to win the day. The euro-bulls can hardly celebrate the victory, but anyway we should admit that EURUSD was purchased well at the daily lows (1.3355) and even demonstrated a series of ascending intraday highs and lows. As a result, the bulls managed to bring the pair up to 1.3426. Last night the pair was again pushed below 1.34, which means that the bears still keep control of the situation. On the whole the market has been balancing in a more…

Draghi is not satisfied with the more expensive euro

By GG Analyst in Reviews 0 Comment

EUR/USD

Mr Draghi met our expectations. Not that he spoke openly about depreciation of the euro or threatened with quantitative easing to weaken the euro, but still he pointed out that the increase in the euro, though reflecting that the eurozone is again trusted, may hamper the recovery. In our opinion, the markets were especially sensitive to the phrase that quick growth of the euro may impair price stability. And this implies that the CB will be ready to act should the euro keep growing. At the moment investors are puzzled which of the CBs is the least tolerant to the high more…

Correction or reversal?

By GG Analyst in Reviews 0 Comment

EUR/USD

Those, who missed volatility and interesting trends in the second half of the previous year, now should be happy about the current state of things in Forex. The single currency rose by 2 figures up to the 15-month high last week and this week for less than 2 days again dipped below 1.34. In January the pair was consolidating below this level for about two weeks, while breaking through the level promised a powerful and continuous rally. The rally proved to be relatively powerful, but not continuous. Back then we already noted that the single currency was appreciating against the dollar more…

Asynchrony of markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The payrolls were somewhat dubious. On the one hand, the January data proved to be worse than expected, but on the other hand the rates of many previous months were revised up. Thus, it turned out that a year ago, in January 2012, the US labour market grew by 311K, while in January 2013 it added just 157K, i.e. twice as little. This growth rate lags behind the natural population growth, so it’s not surprising that the unemployment should rise from 7.8% to 7.9%. The earnings keep growing at a pace slightly higher than the inflation rate, demonstrating 2.1% for earnings more…

Broad USD decline

By GG Analyst in Reviews 0 Comment

EUR/USD

The dollar’s antirally continues. It is a relatively new trend, as earlier the euro was growing against the dollar almost alone. Now appreciation of risk-sensitive assets is getting all-round. Yesterday the euro bears were defending fiercely and didn’t give up 1.36. But in the Asian session today purchasing of the euro became more intense. That was largely caused by growth in EURJPY, which has been on the rise for 11 out of the recent 12 weeks and is now relentlessly sweeping stops before itself. Yet we shouldn’t think that the euro itself has nothing to do with it. Yesterday’s employment data more…