The Reports on Kim Jong-il’s death Push Up the Dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency managed to save its face by closing the previous week above 1.30.  For all that there was no sign of any significant progress in handling the crisis in Europe.  What we see at the moment looks like a technical rebound rather than a movement on expectations of recovery. Thursday and Friday were marked by little growth on the pair, which must have allowed bears to get ready for mounting an attack this pre-Christmas week.  U.S. price data have confirmed the tendencies of recent months. The headline CPI is slowing down on oil and energy disinflation, demonstrating a 3.4% more…

Euro: Down and Out

By GG Analyst in Reviews 0 Comment

EUR/USD

The wave of the euro sales hasn’t taken long to appear. Already yesterday the single currency dipped close to 1.30 and stopped only 8 points above that level. Once again the movement was caused not by statistical data, but by politicians’ pledges. Throughout the day it became clear that there were certain difficulties in fulfilling those minimum requirements that had been proposed at the summit. The countries were again acting as sovereign states, defending their own interests. The ECB’s representative reminded that the Bank was unable to pursue the same policy as the Fed and couldn’t be a lender of last more…

That’s all, Folks!

By GG Analyst in Reviews 0 Comment

EUR/USD

On Monday the euro fell below 1.32 due to the investors’ disappointment in the EU summit. Problems haven’t been solved; all we have now are just pledges to consider a closer fiscal union in half a year – an eternity for a debt crisis! EURUSD is now at 1.3170. It was at 1.3370 at the beginning of Monday’s trading. Moreover, the received comments have once again proved that Germany is not very willing to accept current terms. The fact is that Bundesbank can issue a loan to the IMF only when given the consent of legislators. As follows from the previous more…

The UK Turns Against EU

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency doesn’t feel like growing, which increases the risk that it will be pushed down. The European summit demonstrated an unexpectedly strong resistance of the UK to the closer European integration. Before the Summit the mass media and politicians had been building up a stir over it, calling this event crucial for the euro. But as always the miracle did not happen. Though there were some positive shifts. The European Central banks have agreed to grant the IMF loans, which may eventually be spent to rescue the troubled countries. Yet it circumvents the law according to which the supranational more…

Draghi dragged the euro down

By GG Analyst in Reviews 0 Comment

EUR/USD

Mr. Draghi bitterly disappointed the financial world on Thursday. Yes, the key interest rates were lowered by a quarter of a point to 1 percent. But, alas, there’s no “shock and awe” over the troubled countries’ bond purchases. There hasn’t been even a single attempt to play with the laws and find some loophole. ECB is perseveringly sticking to its guns: “We have a treaty and Article 123 prohibits financing of governments. It embodies the best tradition of the Bundesbank. We shouldn’t try to circumvent the spirit of the treaty.” After that statement markets immediately went down and the demand for more…