Holiday pessimism in Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s a funny thing – the market is teeming with moves in various directions. The EU currencies (EUR and GBP) suffered a lot yesterday. Oil is going down in price, while the stock market has grown just like other risky assets. No matter how illogical this move is, there are still some signs that the markets are getting back to reality. So, yesterday the single currency dropped down after the ECB’s revision of the EU economic growth outlook. Mr. Draghi was rather pessimistic in his comments: on average the European economy is forecasted to shrink by 0.3% in 2013. Yet, as more…

Election results and Forex

By GG Analyst in Reviews 0 Comment

EUR/USD

This week is fraught with risks of uncertainty. And it is not all about the elections in America. We shouldn’t forget about China. According to the surveys now Obama is in the lead, but his advantage makes only about 0.7%. Thus, the election results are even more unpredictable than Friday’s employment statistics. Let’s focus on the possible reaction of the markets in each of the two  potential outcomes of the elections. In our opinion, Romney’s victory will be in favour of the dollar, but will increase the pressure on the stock exchanges. Obama’s reelection will tell favourably on the stock indices. more…

Thirst for risk

By GG Analyst in Reviews 0 Comment

EUR/USD

American exchanges will be open today. The markets look forward to this, since today is the last day of the month, so most funds will be reshuffling their portfolios. Very often it spills over into profit-taking, it means into the move opposite to that observed all through the month. In October the stock market has generally been on the decline. Following this logic, the US stock futures are growing now at the beginning of the day. Yesterday the single currency was appreciating, even despite rather poor news from Europe. EURUSD failed to test the level of 1.30, however the growth from more…

Market Mysticism

By GG Analyst in Reviews 0 Comment

EUR/USD

The famous market commentator, Mark Hulbert, has written a warning article, where he pointed out that yesterday’s decline of the American exchanges could be the start of a fundamental reversal. As an example he cited the fact that the bullish market of 2000s came into existence right on September 9, 2002. And the decline of 2007 started on October 9. It is creepy to think about the strict periodicity of these events – exactly 5 years. And it’s been just 5 years since 2007. On the one hand, the American markets have enough space for a fall, as they are rather more…

Markets get ready for a spurt

By GG Analyst in Reviews 0 Comment

EUR/USD

Last Friday and this Monday the range of the EUR/USD fluctuations exceeded 125 pips. On Tuesday the distance between the intraday high and low made 90pips, and yesterday’s fluctuations fitted into 60 pips. It will hardly be quiet today. This afternoon the ECB holds its regular meeting. This time no one expects any actions from Draghi. Just words. This Italian proved himself to be an eloquent orator, who can make decisive statements and stick to his guns despite resistance of other countries, even of Germany. Earlier Trichet didn’t show such firmness. This time we shouldn’t expect any new statements from Draghi, more…