Germany can’t save everyone

By GG Analyst in Reviews 0 Comment

EUR/USD

Italy is again suffering recession. It became obvious after yesterday’s release of the Prelim PMI data for the second quarter. The statistics indicated the economic slowdown by 0.2% in 2Q after the decline by 0.1% in 1Q. Actually, over the last three years Italy reported only one quarter of growth – the last quarter of 2013. All the rest of the time the economy was suffering sluggish weakening. Even some decrease in the unemployment rate since the beginning of the year doesn’t save the situation. 12.3% is still too high to rely on the growth of consumer activity. Even the foreign more…

Kiwi cannot fly

By GG Analyst in Reviews 0 Comment

EUR/USD

Another attack of bears pushed the single currency down against the US dollar and the British pound yesterday. The reason for the pair’s decline below the previous low was formally in the divergence of fundamental statistics. The final EU Services PMIs generally didn’t reach the preceding and forecasted rates. The only exception was Germany, whose PMI was raised from 56.6 to 56.7, but even there the Composite PMI was revised down because of the reduction of the Manufacturing PMI. Upon the whole the EU services sector is demonstrating the most active growth since May 2011, but the fact that the index more…

Another step towards normalization in the USA

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday EURUSD was drifting within a rather narrow trading range in the absence of news. Over the day the pair went down just by 10 pips to 1.3420, though upon the whole bears seemed to be stronger. The thing is that the intraday low was at 1.3408 while the high was near the daily open. In the European news background only the Sentix Investor Confidence is of interest – it was poor due to the increased geopolitical risks in the region (Ukraine, Iraq, Gaza Strip). The rate fell down to the levels reported a year ago, albeit remained positive. It is more…

Fed is the only one to deter USD’s powerful rally

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s economic statistics from the USA supported USD’s growth. In accord with the preliminary estimate, the GDP grew by 4.0% annually after the decline in the first quarter had been revised to 2.1%. Thus, the decline in the first quarter proved to be less deep than reported a month ago (2.9%) and the further growth more than made up for the dreadful beginning of the year. Such a disposition allowed to think that the Fed doesn’t need to hurry with a sharp revision of the growth outlook for the year. In its turn it suggests a possibility of earlier toughening of more…

USD has been bought beforehand

By GG Analyst in Reviews 0 Comment

EUR/USD

This week we expect a whole series of important macroeconomic news from the USA. It will all start with the release of the GDP data for the second quarter on Wednesday. Further the baton will be picked up by the FOMC’s decision on QE and interest rates and by employment stats on Friday. The GDP is expected to show impressive growth against the recovery after the disastrous first quarter in the background. The Fed will hardly suggest anything new except for the 10-billion tapering of the asset purchasing programme, but traders and investors will still look for hints at the earlier more…