If no growth, then a fall

By GG Analyst in Reviews 0 Comment

EUR/USD

Judging by the newspaper headlines of the beginning of the week, it looks as though the situation had come under control of Draghi since Germans have become more yielding in regard to the issue of common bonds. Since then the markets haven’t seen any significant details on this. Most of the markets have been trading sideways, each time fearfully bouncing off the highs. But the euro has been methodically giving up its positions after Wednesday’s highs. Basically, diversity in the performance of currencies with equal reaction to risk demand is not a frequent case. Very often, this doesn’t last for long more…

Running on the spot

By GG Analyst in Reviews 0 Comment

EUR/USD

Last week the positive corporate reports provided immunity against euro sales in Forex. Surprising enough, but very often optimism was maintained by favourable sales outlook while the actual reports weren’t always strong enough to delight investors. This week the situation in the euro zone has remained pretty much the same. The existing problems are still unsolved, but corporate reports don’t make the markets happy any longer. Yesterday we mentioned that over Friday and Monday the S&P 500 futures approached the lower boundary of the ascending corridor before a possible growth. However, yesterday the bears proved to be stronger, breaking down that more…

Markets listlessly correct after this week’s growth

By GG Analyst in Reviews 0 Comment

EUR/USD

The dashing march of stock exchanges is fading away by the end of the week, which in fact can boast the strongest growth since last January. As has already been mentioned in our previous reviews, good corporate reports helped the markets, favourably telling on the risk demand. Yet the single currency is enjoying just a nominal growth after the drop down to 2yr lows against the dollar. A sequence of ascending highs and lows in EUR/USD is good in itself, but still it is a very slack dynamics. By now the common currency hasn’t managed to make any gains against the more…

Bernanke disappoints, corporate reports inspire

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke didn’t put forward any proposal to the markets, but the latter weren’t much upset because of that.  Addressing the Congress with the Semiannual Monetary Policy Report, the Fed’s head highlighted rather gloomy perspectives of the American economy, but kept the tone of careful scrutiny. His speech was rather retrospective and alluding to the previous commentaries of the CB than prospective, that is pointing out the future of the policy. Remember that at the June meeting FOMC decided for the extension of Operation Twist (exchange of short-term bonds for long-term bonds) before the end of the year. Then in the June more…

Short covering in EUR before Bernanke’s speech

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was on the decline yesterday morning, but the news from the USA once again reminded us that the situation across the Atlantic is also rather gloomy. The pressure over the euro has been provoking the change of the interest rate differential after the ECB cut the rate down to 0.75% at the beginning of the month. That made the euro one of the weakest currencies, forcing it to fall against most of its competitors. Most likely, the decline in the euro/dollar from 1.2260 down to 1.2175 in the morning hours yesterday was caused not so much by the more…