Scotland supported Britain and helped the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

All day long yesterday the single currency was taking painful attempts to recover after the mess made by FOMC’s intention to introduce a tougher monetary policy than expected. It also must have been to the advantage of the single currency that the demand at the TLTRO auction , which the ECG conducted for the first time, proved to be lower than forecasted. The analysts, surveyed by Bloomberg, expected bids for approximately €175bln, while the actual demand proved to be twice as low, making 82.6bln. It means that banks don’t hurry to make 4-year loans at quite a low interest rate of more…

FOMC intends to act with decision

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed is preparing the markets for a more dramatic increase of interest rates from the beginning of toughening. Besides, Fed Chair, despite all vagueness of her comments, made it clear that the markets were underestimating closeness of rate increases. It can be treated as a promise of the first increase already in the first 3-4 months of the next year instead of the middle of the year as expected earlier. It seems that Janet Yellen tried to imitate Greenspan, making obscure comments and leaving herself more space for maneuver. If she starts to imitate not only Greenspan’s manner of wording, more…

Profit-squeeze in USD

By GG Analyst in Reviews 0 Comment

EUR/USD

China has pleased the markets a bit, announcing allocation of funds to five largest banks of the country. $81bln is not a very big sum and bears no comparison to the two preceding programs of incentives. However, the market more and more expects that the National Bank of China will remain on the sidelines at the time of sharp economic slowdown. ZEW Economic Sentiment proved to be stronger than expected and that aroused some optimism regarding the euro. The main index fell from 8.6 down to 6.9 instead of the forecasted reduction to 5.2. The indicator of the current situation tumbled more…

Finding a reason for correction

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD has been flat since the beginning of the week, but even this is not enough to state a sharper growth of the dollar index since last November. Each currency has its own reasons to depreciate against the dollar. Thus, the euro is under the pressure of deterioration of the investment climate due to the sanctions against Russia. The cut of the interest rates by the ECB last week also hampers the attractiveness of the single currency. Anyway, the reaction last week and earlier this week was so strong that on Wednesday, Thursday and Friday bears managed only to maintain their more…

EUR: controlled by bears

By GG Analyst in Reviews 0 Comment

EUR/USD

Hardly had the EU currency took one feeble attempt to adjust its decline yesterday, when bears overtly reminded it who controlled the market. The pair tumbled from the level of 1.2960 down to 1.2880. The major fundamental factor is low interest rates in the  eurozone, which put pressure on the money market – investors are trying to withdraw their assets from Europe to the USA or other countries and this exerts pressure on the single currency. But on the other hand, now yields of the US bonds are growing, which means that their prices are falling  and this is already a more…