The inflation slowdown in the USA gives the Fed room for maneuvering

By GG Analyst in Reviews 0 Comment

EUR/USD

Though we cannot talk about the absolutely smooth run of events in the USA yet, one factor definitely speaks in its favour. This is the slowdown of inflation. Such disposition leaves space for the Fed to maneuver in regard to the further QE. Frankly speaking, inflation has never held back from taking decisive measures, yet the pressure on the part of economists has always been high. Let’s turn to the facts. According to the preliminary estimates, in the first quarter the US economy was developing with the annual rate of 2.2%. It is a bit weaker than the expected 2.6%, but more…

The euro is under pressure due to the disappointment in the first round of elections in France

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency demonstrated a fairly good growth on Friday due to the stream of positive news out of the region. The German IFO figures moderately exceeded the expectations. The US stock markets also brought in some favourable news, which helped to maintain the demand for risk. Eventually EUR/USD climbed above 1.32 by the end of Friday’s trading, however this week has been opened with the sinking down to 1.3160. Such caution over the common currency is caused by Hollande’s victory in the first round of French elections. Of course, this is not the end, but markets feel nervous as the more…

North America doesn’t hurry to help Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

This morning the Asian markets are under a slightly descending pressure, but the pressure is moderate and therefore doesn’t tell on the currency quotes. Yesterday the euro went through a few disturbing hours, but then investors resumed buying the currency. The disappointment in the high yield, which investors demanded of the Spanish long-term bonds, caused the decline of the euro/dollar from 1.3150 to 1.3070.  The sales were also boosted by the rumours that Hollande, who is known to be against the earlier EU arrangements and agreements, is taking the lead in the French presidential race. The leaders of the largest economies more…

EUR: a long tightrope walk above the chasm

By GG Analyst in Reviews 0 Comment

EUR/USD

For the last 12 trading days positive and negative news on the euro have been perfectly balancing each other, making the euro/dollar fluctuate up and down the 1.31 level. Today the markets are standing still in expectation of the long-term Spanish debt auction. Remember that despite the yield growth the short-term auction results were regarded as positive and brought down the CDS price. The same outcome can be expected this time, as the ECB will hardly let the situation run out of control at such an important moment. After all, if deterioration in Spain reaches the same point as in Greece, more…

Asian bears against American bulls

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency with credit tested the 1.30 level yesterday. The bears didn’t manage to push down the currency in Asian and European trading hours. Meanwhile Americans were already buying the euro, having driven EUR/USD a safe distance up. The euro jumped up to 1.3150, but this morning Asians resumed their attempts to press the pair, which is now trading at 1.31. The Asians’ caution and demand for safety look quite natural. The nations with the current account surplus are in constant search of promising investment directions. And now the profitability of investments in the euro is rather doubtful. In fact, more…