Forex is still in stupor, but stocks and commodities are tumbling down

By GG Analyst in Reviews 0 Comment

EUR/USD

Corporate reports are disappointing. The analysts’ favourite company – Apple – has managed to increase its net profit by 24%, but still failed to surpass the market expectations. About 70% of S&P 500 corporations have already submitted their reports by now. More often, the profit rates prove to be better than forecasted, while the turnover goes beyond expectations. This happens when companies sell high margin products, however on a smaller scale than desired by market participants. This disappointing fact sets the US stock indices along with Asia going down. And altogether this results in a lower demand for risk. The single more…

Markets: not bad, but far from perfect

By GG Analyst in Reviews 0 Comment

EUR/USD

Monday started with a slight upsurge in the single currency: the buyers gradually raised the rate from 1.3015 to 1.3065. Now, at these levels the pair faces difficulties before the further growth. Now it is already hard to understand what the decline on Wednesday – Friday was caused by. Actually, lately we’ve heard rather good news both from the USA and Europe. Of course, the positiveness of this news is relative. Looking at it, we can conclude that it can well be the case that in the third quarter neither Europe nor the USA faced slowdown. Anyway, everything is too far more…

Buying the dips

By GG Analyst in Reviews 0 Comment

EUR/USD

Within the last 24 hours the single currency has left the zone of 1.31. Late on Thursday evening EURUSD was as low as 1.3050. Those, who stick to technical analysis in their trading, suspect that the pair can form a double top, and this is not without reason. On Wednesday the euro tried to break above the previous highs, however the bears repulsed the attack. In the long term, we believe, the single currency is in no danger, but still we shouldn’t expect that growth will be without stops and retracements. One of such, apparently, was yesterday. Though the bulls felt more…

Was IMF too pessimistic?

By GG Analyst in Reviews 0 Comment

EUR/USD

One can hardly recall any correct economic forecast from the IMF over the recent years, even with numerous revisions considered. For this reason, the markets didn’t grieve much over the rather pessimistic comments of the IMF at the end of the last week. Besides, traders preferred not to make much fuss over the horrific figure of 4.5bln either. This is the sum which the EU banks will have to sell assets for in case the politicians don’t manage to deter the spread of the crisis. Still have a look at the actual data. The decline of the single currency proved to more…

Bailout of Spain – is it good or bad?

By GG Analyst in Reviews 0 Comment

EUR/USD

If we look at the headlines of the leading news agencies, it is absolutely unclear whether it is good or bad that Spain doesn’t ask for a bailout. Last week the speculations on the high expectations of Spain’s appeal for a bailout contributed to growth of the single currency against the dollar and gave rise to optimism in the markets. This morning the decline from 1.2950 to 1.29 again was attributed to the inevitability of Spain’s request for a bailout. For those who are tired of this fuss we’ll try to give an alternative explanation. EUR/USD is now balanced. The absence more…