Is the Christmas Forex-rally about to start?

By GG Analyst in Reviews 0 Comment

EUR/USD

Don’t be surprised at yesterday’s retracement of the markets. It doesn’t really mean that the further upward move is not possible and that the market is disappointed because Bernanke has proved to be tougher than needed. Yesterday’s move down as well as selling late on Wednesday has just marked taking of profits and rebalancing of positions before the Christmas rally. Yes, we believe that it hasn’t started yet, since the level of 1.3140 hasn’t been passed. The bears have pushed the pair off this level frequently this year. But this time there’s a good chance that the level will be passed more…

The higher we grow, the faster we fall

By GG Analyst in Reviews 0 Comment

EUR/USD

The bears are trying to grab the markets in their paws. Yesterday the common currency didn’t have even a single chance to test 1.3140. The market reversed at 1.3125. Yet, it doesn’t change anything now. As has already been mentioned, the recent sharp upsurge from time to time stumbled upon the short-term selling, after which players again started buying the single currency. But this time the decline is smoother and there isn’t any sound reason on the euro’s side. Now it’s all about the dollar. The latter started appreciating in many asset classes. And largely it is a result of the more…

Republicans won’t give in without a struggle

By GG Analyst in Reviews 0 Comment

EUR/USD

Doctor House was right – everybody lies. This time those, who believed that it would be easy to agree on the fiscal cliff issue, proved to be mistaken. The good beginning of trades in stock exchanges on China’s agitation was ruined by poor news from the USA. The republicans refuse to support tax increases. They stick to the idea of further active economic stimulation, while Obama advocates spending cuts. We still believe that the middle way here consists in tax increases for the rich and preservation of some tax benefits. Yet republicans want deeper spending cuts on health care than Obama more…

The markets go on the defensive under the “cliff” threat

By GG Analyst in Reviews 0 Comment

EUR/USD

As expected, it wasn’t easy to break through 1.30. The active European session resulted in selling the euro, partly because investors don’t believe that the EU debt crisis will be resolved now and partly because there’s no progress in the fiscal cliff issue. Difficulties on this path aren’t surprising and we spoke about this in our previous reviews. Obama seeks the support of small business to preserve tax benefits for the middle class. However, everyone understands that such benefits put a heavier burden on the rich. Republicans are against this. Probably, in the short term the markets would favour the victory more…

Still cherish hopes for the politicians?

By GG Analyst in Reviews 0 Comment

EUR/USD

The day which had promised to be quiet turned into a big rally for the stock exchanges and risk-sensitive currencies.  The rally was spurred by Obama’s assurances that the fiscal cliff issue would be settled in the near future. As a result, S&P closed six sessions in a row with significant gains, though on Wednesday and Thursday it looked as if the growth impulse petered out. As expected, the struggle for 1.29 in EURUSD was rather fierce. Eventually, at the height of the EU session the bears gave in, thus allowing the pair to grow further. The euro had almost managed more…