Markets climb extremely high to launch correction next

By GG Analyst in Reviews 0 Comment

EUR/USD

Markets cracked under their own weight and after an impressive rally on Monday launched a deep correction. Formally, the sales were triggered by a dramatic deterioration of the consumer confidence, recorded by Conference Board. In March the figure made 70.2 against 71.6 a month earlier. Besides, the worsening was mainly caused by ongoing concerns of the Americans about the employment situation in the country. Remember that just a few days ago everyone saw only positive changes in this sector and drew the parallel with the figures at the start of recession? Of course, the labour market issue may pale into significance more…

Good news does not always excite the market growth

By GG Analyst in Reviews 0 Comment

EUR/USD

EUR/USD has been falling since Friday and has lost almost two big figures over this time. The single currency is now worth $1.3080, which is a four-week low. Against our expectations the market did not wait for the publication of statistics on the US employment to start selling risky assets, including the euro. As a result, at the time the non-farm payrolls were released, the euro was already trading as high as 1.3125. The labour market statistics has come in almost as good as expected, showing the 227K increase in the number of jobs (we predicted 235K, while the general market more…

Is it the end of the Greek drama?

By GG Analyst in Reviews 0 Comment

EUR/USD

Private lenders have agreed to write off the Greek debt by 53.5%, though earlier it was negotiated to cut the nominal face value by 50%, which corresponds to the 70% loss of the net present value. In addition, it’s been reported that an agreement on the second bailout package was also reached. Actually, rumours about a good state of affairs were circulating around the market all day yesterday, thus maintaining a high demand for the euro. The single currency got stronger yesterday and is now trading near 1.3270, compared with Monday’s opening level of 1.3150. Now it’s possible to say that more…

The Year Is New, but Trends Are Old – the EUR Keeps Going Down

By GG Analyst in Reviews 0 Comment

EUR/USD

So far the single currency has been keeping that very trend which emerged back in November. The corridor of a bit wider than 400 points is still in power despite several attempts of the pair to break it up. The bulls’ attacks were repulsed on December 28 and on January 4. Assuming that the corridor will be still here in January, the pair is likely to be trading between 1.19-1.23 by the end of the month. It would be a natural outcome considering the business slowdown in Europe which is marked by several indicators. Let’s consider one of them – PMI: more…

The Santa Claus Rally Has Reached a Crucial Point: either Up or Down

By GG Analyst in Reviews 0 Comment

EUR/USD

American stocks made a considerable breakout on Friday. The U.S. broad market index S&P 500 closed the pre-Christmas trading session above the 200-day moving average, but, what is more important, went positive at year-end. This surplus is minimum – just 0.6%, but it is still attracting a great deal of attention. Generally speaking, breaking of the 200-day moving average is a strong bullish signal for the stock exchanges. But now skeptics stronger than ever claim that it’s nothing more than the Santa Claus rally and wants confirmation. These talks have already caused a slump of the Asian exchanges. On Tuesday morning more…