Soft pressure on the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is trying hardest to catch at 1.36. Yesterday it slipped from 1.3668 to 1.3585 in the course of the sluggish EU session. The only thing which prevented it from further  decline was strengthening of risk demand that was supporting the US exchanges. Whatever skeptics say about the minimum effect of the ECB’s measures on the euro, it still exists. In the currency market the rates have shifted from the euro to the dollar, so in the quiet market we see prevalence of gradual  euro selling in favour of the US currency. The latter will function more as a more…

Growing risk demand

By GG Analyst in Reviews 0 Comment

EUR/USD

The employment data almost completely met the forecasts and even slightly exceeded them. The number of jobs grew by 217K in May against the initially expected 214. With this indicator it is more of an accident rather than regularity. Despite its importance this indicator cannot be forecasted, mainly because it is leading and as such affects other trends. The other parameters of Friday’s US employment statistics also met the expectation or slightly surpassed them. The private sector employment increased by 216K, which is much different from ADP’s data (179K). Average hourly earnings show slow, but steady growth. The annual growth rate more…

Bulls’ defensive line

By GG Analyst in Reviews 0 Comment

EUR/USD

The revised statistics on the US GDP in the first quarter proved to be even worse than that poor growth rate of 0.1%, which we saw a month ago. The revised data showed that the economy was shrinking at the pace of 1.0%. These data are really poor, yet they were soon diluted by quite favourable employment data. The weekly unemployment claims decreased to 300K, which is much better than the expected 321K and the preceding rate of 327. The continuing claims are still in the downtrend, making now only 2631K. This unemployment downtrend was exactly that very factor, which outweighed more…

Yellen against USD

By GG Analyst in Reviews 0 Comment

EUR/USD

USD has been falling after Yellen’s words about ‘continuing commitment’ to economic support from Fed. It means that Fed’s governor remains dovish, just like at the end of the previous year. This softness anyway didn’t break the trend for tapering, set by another ultra-dove, Bernanke. In effect Yellen said that the threat is posed by deflation rather than inflation. In reaction to this comment EURUSD returned to 1.3840 during the Asian session. It is even possible that the growing energy independence of the USA is playing a crucial role here. The thing is that in the 2000s the global economic growth more…

Resistance to USD growth

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the US assets were again in demand. While stock exchanges were recouping the losses incurred at the end of the previous week, the US dollar was trying to partially offset the earlier losses. EURUSD fell down to 1.3790 yesterday, but soon it found buyers, who brought it back above 1.3800. Those market forces once again disabled taking control over the dollar despite the strong inflation data. CPI grew to 1.5% y/y against the supposed 1.4% and 1.1% a month ago. It is also remarkable that the core indicator, that with food and energy excluded, also returned to 1.7%, which was more…