The week of benefit events by Central Banks

Central Banks


EURUSD started off on the wrong foot the last week obviously. From the very beginning the bears rushed to fight for 1.0850 mark. Later, on Tuesday, they repeated the attack but bulls has managed to keep the key mark, postponing the battle for trend. Most probably, the current or the next week will be vital for the pair’s trend. The new week brings such key events for the US dollar as Fed Reserve meeting and October employment report. We do not exclude that cautious Fed Reserve tries to start already on Wednesday, in its November comments, forming the market expectations of more…

Preview: 4 decisions of Central Banks and no changes



During the first half of the week the USD was influenced by the extremely weak payrolls from the USA. Moreover, on Monday Yellen totally destroyed the bulls hopes for the rate raise in June. She announced again the cautiousness that should use the Federal Reserve while the making rate decision. Hence, we should not worry either about unexpected policy tightening next week. As well FOMC forecasts about rate and economy growth remain uncertain. They may again reconsider GDP expectations to the decline side. As per the rate forecasts the uncertainty is much higher.

Weekly unemployment claims, released at the end of the more…

Technical analysis highlights a possibility of short-term correction


The single currency is no longer as sensitive to Draghi’s comments as before. Yesterday he expressed readiness to expand incentives, including non-traditional measures. However, the markets don’t take these words as a threat now as Draghi’s under increasing pressure of Bundesbank and the central banks of other core countries. Thus, the reaction to Draghi’s rhetoric was quickly exhausted. The pair dropped down to 1.2816 (a new high for more than a year). The pair remains oversold. But meanwhile its current position is explained by fundamental factors. So short-term traders can only rely on a quick pullback within the range of the more…

EUR has reversed, others lag behind


Even the relatively strong PMI rates for May couldn’t change the market sentiment regarding the single currency yesterday. The level of 1.37 was finally surrendered and now trading is held close to 1.3650. We got evidence of the downtrend formation when the pair dropped below the preceding low of 1.3675 and became sure about the bulls’ strength when went below that level once again. The lows were not completely renewed as on Wednesday the pair declined to 1.3633 and this morning it only hit 1.3640. The current rates are extremely important for the pair as the 200-day MA is just 10 more…

Outlook for 2014: Part Two


The Asian stock markets showed some growth after the holidays, taking their lead from the US pre-Christmas positive mood. Yet, the yen is still under pressure. It hit a fresh five-year high against the dollar – at 104.82. AUDUSD also opened with a gap down. Probably, it is somehow interconnected as AUDJPY hasn’t demonstrated any changes – the cross opened at 93.06, where it had been before closing. So, no significant shifts. And it is quite reasonable as during the holiday time there wasn’t any important events. During the pre-Christmas trading session the dollar was in demand most of the time, more…