Dying carry-trade

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets are still in dissonance. Yesterday the single currency was appreciating while the US stock exchanges were on the decline. The EU markets were closed and will be back to work only today. The thin pre-holiday currency market was warmed up to the degree that triggered stop-orders. As a result, the daily minimum was set at 1.3180 at the beginning of trades and then with short hitches the pair got to 1.3250. Anyway, the pair didn’t manage to grow higher – instead traders got down to collecting their profits and activity started to gradually subside. This day promises to be more…

Has ECB’s liguidity reversed the falling lending trend?

By GG Analyst in Reviews 0 Comment

EUR/USD

As reported in the press, the European leaders are considering the possible extending of bailout funds. Released at the end of the day, this news managed to restore confidence in the markets and hold the euro back from falling. As a result, EUR/USD is trading evenly at the same level as a day ago, around 1,3310. Not very prominent, but quite alarming news came in yesterday from the ECB. As shown in the regular statistics, M3 Money Supply grew from 2,5% to 2,8% in February. It indicates the reversal from the terrible figures of December and accounts for the ECB’s liquidity more…

Is EUR becoming the carry-trade funding currency?

By GG Analyst in Reviews 0 Comment

EUR/USD

The data on the ECB’s direct loans proved adverse for the common currency and eventually generated demand for the dollar. It is quite an interesting result as the figures turned out to be close to the middle of the predicted values. Three-year loans totaled 530 billion euro. However, the euro failed to make any gains on the news. On the other hand, the peripheral bond yields began to decline straight away, thus indicating that the fears for the fate of these countries subsided. Judging by the influence such loans produce on the currency, they can be definitely attributed to quantitative easing, more…

The euroarea tensions do not allow EUR to join the market rally

By GG Analyst in Reviews 0 Comment

EUR/USD

The Greeks haven’t agreed on the tougher austerity programme yet. The European leaders, in their turn, are increasing their pressure on the country, urging it to carry out the expenditure cuts sooner. Yesterday the euro had been falling until it reached 1.3030, but then another wave of stop-orders pulled the pair back above 1.31. It happened on the news that the government agreed to dismiss 15000 public sector workers. But it is not enough, and today the debates will be carried out against the background of large-scale strikes. Since the events are long-term, traders currently have a great deal of short more…