RBA joins the ranks of dovish DM CB

By GG Analyst in Reviews 0 Comment

EUR/USD

The market remains in the consolidation phase, with EUR/USD fluctuating around 1.29. Various discrepant news releases are tilting the balance first to one side and shortly after to the other one. It’s important that yesterday the single currency didn’t surrender to bears and managed to get over the morning pessimism of the markets. The slight upward revision of the EU Manufacturing PMI data for September inspired the markets with hope. Later that day the ISM Manufacturing PMI statistics for the USA were published. This index proved to be surprisingly good. Instead of the expected 49.8 (which means a slight decline against more…

A new quarter – new trends

By GG Analyst in Reviews 0 Comment

EUR/USD

The last trading day of the week, month, quarter and with some countries of the fiscal year didn’t pass without a sale. On Friday the single currency lost the gains of Thursday – it dropped down to 1.2840 and this night it came close to 1.28. The pressure of this week has been caused by the renewed concerns about the manufacturing slowdown of China. The official data on the Manufacturing PMI have been pointing at the slackening of business activity for two months in a row. It is surprising that notwithstanding this fact the markets, which already last week had the more…

Poor US statistics didn’t stunt the market growth yesterday

By GG Analyst in Reviews 0 Comment

EUR/USD

Spain faces a difficult task, but, in our opinion, Rajoy’s government has taken the right approach to the deficit reduction issue. Next year’s budget, which was published yesterday, focuses primarily on the reduction of the government spending instead of the tax increase. Cutting the government spending by 7.3%, Spain supposes to save €13bln. It’s important that this scheme of deficit reduction goes in line with the EU bailout terms. Thus, Spain formulates the fiscal policy, which beforehand presupposes the turn for help from the outside. Otherwise, it would be necessary to revise the budget in a few months, which would only more…

Tug of war is over: bears win

By GG Analyst in Reviews 0 Comment

EUR/USD

A tug of war between bears and bulls has ended in victory for bears. The stock markets have declined sharply: the American exchanges have lost by more than a percent and the Asian markets have fallen by approximately two percents. The reason why the US exchanges have taken up a defensive position is quite clear: earlier that day the indices hit the highest level for the last 5 years. With such a background it was logical to expect profit taking. Here we should also consider the fact that the rally in the American market has been exemplary for too long and more…

Euro-bears to attack 1.29 again

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro-bears had enough courage, but no strength to test 1.29. On the disappointing Ifo Business Climate statistics the euro sank down to 1.2895. The Ifo index is considered to be one of the best health indicators for the largest EU economy. In September instead of the expected growth it fell down to 101.4, which is the lowest value since February 2010. It should be mentioned here that the falls of such amplitude (-13.7 points after the peak of 115.1 in February) very often forego the periods of economic contraction. Apparently, in the third quarter Germany won’t be able to show more…