Problems are only with the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency still cannot start growing. Yesterday’s consolidation of EUR/USD with purchases on the decline below 1.2850 was sharply broken by the S&P’s message about cutting of Spain’s rating. Now it is just a step above the dust heap. As emphasized by the rating agency, the entire blame lies with the poor economic growth and inability of the government to handle the situation. But we know that these things are closely connected with each other and that the poor economic growth feeds itself in the environment of fiscal austerity: the economy gets worse, entailing plunge in tax receipts and increase more…

Market Mysticism

By GG Analyst in Reviews 0 Comment

EUR/USD

The famous market commentator, Mark Hulbert, has written a warning article, where he pointed out that yesterday’s decline of the American exchanges could be the start of a fundamental reversal. As an example he cited the fact that the bullish market of 2000s came into existence right on September 9, 2002. And the decline of 2007 started on October 9. It is creepy to think about the strict periodicity of these events – exactly 5 years. And it’s been just 5 years since 2007. On the one hand, the American markets have enough space for a fall, as they are rather more…

Mysterious reaction to employment statistics

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment releases are always very informative, this is why commentators very often not only make discrepant forecasts, but also give discrepant interpretation of the results. This time the situation is even more interesting. The two major indexes indicated opposite trends. Actual payrolls coincided with the forecasts, showing the employment increase by 114K. It’s remarkable that together with the serious growth, the data for the previous two months were also revised. The seemingly poor August figures were revised from 96K up to 142K and in July, as it turned out, there was a dramatic growth by 181K. Anyway, this quick more…

Central and tail-risk scenarios for payrolls

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency shot up yesterday, hitting the level of 1.30 already before the payrolls. Having taken the grip of such an important psychological level before this serious news, the bulls rejoice in their success.  Yet, it’s remarkable that Draghi hasn’t given any new information to the markets. Investors and traders didn’t hope for that and to make out the further cause of actions tried to be attentive to the nuances. The markets arrived at the conclusion that Draghi would prefer to get a bailout request from Spain and probably from Italy as soon as possible to bring all guns into more…

Choppy market

By GG Analyst in Reviews 0 Comment

EUR/USD

We can’t say that trading in Forex is as quiet, to be more exact listless, as about a month ago, however no definite trend has set in yet. The single currency has performed a nice jerk since the start of the week, bouncing off 1.28 and getting to 1.2967 yesterday. Yet, the currency passed exactly the same distance from mid Friday till the beginning of Monday’s session in Asia. Probably, we’ll see another move down to 1.28 soon. EUR/USD looks quite unstable above 1.2950, so at the end of the US session traders started to purchase the US dollar. The leading more…