The European politicians say that the worst is over, but banks feel none the better for it

By GG Analyst in Reviews 0 Comment

EUR/USD

On the first full trading day after the long holidays markets failed to fight down the across-the-board pessimism and declined by over 1.5 % on average. Actually, markets didn’t have much choice due to the rising fears of another aggravation of the situation in Europe. In addition, hope for improvement of the exterior affairs also fades, as China’s and America’s economies are now slowing down as well. Under such circumstances all eyes are turned to the European politicians, who are looking for means to improve the market sentiment. For instance, the spokesman of the German ministry of finance stated yesterday that more…

Bernanke calls on banks to increase their capital buffers – markets don’t like it

By GG Analyst in Reviews 0 Comment

EUR/USD

On Monday evening markets started to recoup the losses suffered on poor employment data from the US. And since chances of the monetary policy toughening in the US diminished the dollar began to decline. The payrolls themselves were minutely described in our yesterday’s review, so we are passing over to other news. This night in Atlanta Bernanke made a speech in which he mentioned about the necessity of bigger bank capital buffers. This statement was quite alarming for banks and has already led to heavy losses of their stocks. Yet, Bernanke was his usual self, i.e. quite gentle, as he made more…

The weekend stole volatility

By GG Analyst in Reviews 0 Comment

EUR/USD

To discern the market reaction to Friday’s payrolls you’ll probably have to use a microscope.  It’s somewhat surprising as usually the release of the figure causes much movement in the markets and can even set the trend for the further month. Apart from the strong market reaction the indicator is also famous for its unpredictability: there is always a range of diverging forecasts and a wide discrepancy markets turned out mistaken in their estimates. The released data showed that employment growth made only 120K against the forecasted “above 200K”. According to the updated statistics the employment growth peaked in January, when more…

European bears, American bulls

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s great when officials pay their attention to the same figures as analysts do. Like was mentioned yesterday, although filling of the European banks with liquidity has helped to save the regional financial system from complete collapse, it still hasn’t reached the ultimate goal that Draghi talked about. Namely, it hasn’t managed to increase lending to the business and household sectors. However, as the ECB’s vice-president quite unexpectedly put in his speech, the Bank didn’t pursue the goal of supporting lending in the region. It’s a bit surprising. At the same time, the situation in Spain is becoming tenser and tenser. more…

Has ECB’s liguidity reversed the falling lending trend?

By GG Analyst in Reviews 0 Comment

EUR/USD

As reported in the press, the European leaders are considering the possible extending of bailout funds. Released at the end of the day, this news managed to restore confidence in the markets and hold the euro back from falling. As a result, EUR/USD is trading evenly at the same level as a day ago, around 1,3310. Not very prominent, but quite alarming news came in yesterday from the ECB. As shown in the regular statistics, M3 Money Supply grew from 2,5% to 2,8% in February. It indicates the reversal from the terrible figures of December and accounts for the ECB’s liquidity more…