Between Fed’s QE3 and ECB’s LTRO

By GG Analyst in Reviews 0 Comment

EUR/USD

Mariano Rajoy, Prime Minister of Spain, keeps upsetting the markets with his unexpected remarks. Yesterday he kicked the euro from 1.2520 down to 1.2410, pointing out that the country’s banking system is “in an extremely difficult situation”. He also mentioned that joint euro bonds could ease the pressure currently imposed on the Spanish banks. Nevertheless, the aforementioned drop was soon followed by another attempt to go up to 1.25, where the pair found itself earlier today. Yesterday afternoon the markets were full of hope that after the phone conference the G7 finance ministers and leaders of the local CBs would take more…

EUR plunged below 1.29. Politicians consider the losses the Greek secession may inflict

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency opened the day with a drop below 1.29, caused by the persisting political uncertainty in Greece. Apart from the Bloomberg’s survey which forecasts the more than 50 % probability that “at least one country will leave EU by the end of the year”, some European officials already say that the consequences of this step are discussed at the summit level. As many times before, the deadline for the political decisions on Greece has been passed with no certain decision taken. The country still doesn’t have the government. The ECB’s Honohan said that “technically” Greece can disintegrate the euro, more…

Greek deal is done and markets wait for payrolls

By GG Analyst in Reviews 0 Comment

EUR/USD

Thursday proved to be quite a favourable day for the markets. Tuesday’s losses in the stock markets were recouped, and the single currency climbed pretty much higher.  EUR/USD is trading near 1.3250 now. Most likely, it will stick to this level until the release of data on the US employment. The results of the private investor participation in the debt swap were postponed to Friday morning. The good news is that the 66% threshold has been crossed, which, actually, was already evident from the leaks yesterday. With the collective action clauses applied, the level of participation in the swap amounted to more…

Euro area rose to two-month highs on triggering of stop orders

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency has moved up on triggering stop orders and reached 1.3360. This level is the highest since mid-December. The rising optimism in stock markets and subsiding fears around Greece lead to partial liquidation of short positions in the euro. As has already been mentioned, the market is heavily tilted against the euro, yet its exchange rate has remained relatively stable so far. Thus, the upward movement of EUR/ USD has good chances to go on. This rally is supported by strengthening of stock markets on good reports and rise in prices of raw materials. Until recently the inverse correlation more…