EUR: controlled by bears

By GG Analyst in Reviews 0 Comment

EUR/USD

Hardly had the EU currency took one feeble attempt to adjust its decline yesterday, when bears overtly reminded it who controlled the market. The pair tumbled from the level of 1.2960 down to 1.2880. The major fundamental factor is low interest rates in the  eurozone, which put pressure on the money market – investors are trying to withdraw their assets from Europe to the USA or other countries and this exerts pressure on the single currency. But on the other hand, now yields of the US bonds are growing, which means that their prices are falling  and this is already a more…

Overbought USD

By GG Analyst in Reviews 0 Comment

EUR/USD

1.2859 is another new low in EURUSD. Since the moment when this low was hit at the beginning of the EU session the pair has been consolidating above 1.2900. Though it is hard to believe in growth of the single currency on some good news from the eurozone, there will be reasons for a pullback in the pair. Now market participants are building the earlier end of the QE programme and/or the earlier beginning of rate increases into the rates. It is obvious from the reaction of the debt and stock markets, but the currency market seems to have already made more…

Nothing will ever stop the dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

EUR keeps waging an attack as if it made up for the unimpressive beginning of the year. Then the dollar was expected to show almost immediate growth, believing that QE tapering was a good reason for the currency’s appreciation. However, as seen, this reason is posed by the prospect of the rate increase. It’s of interest that market participants often ran ahead of time then, expecting earlier toughening of the policy, though already in a few months there was nothing else to do but suppose further incentives. Now the situation seems to have changed radically. According to the Fed’s research, the more…

EUR is crushed by the ECB

By GG Analyst in Reviews 0 Comment

EUR/USD

The heaven tumbled down for the single currency yesterday. The sudden decline of the core interest rate and other accompanying rates by 10bp forced EURUSD to fall down from the daily open of 1.3150 to 1.2940 by the end of the day. The pair was last seen that low more than a year ago. Then, in 2013, it found support near 1.2750, which leaves much space for maneuver regarding further decline. Though on the other hand EURUSD is so oversold that to stimulate depreciation today the US employment statistics should be unbelievably good. It is expected that the US employment will more…

USD launches a flank attack

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency hit a fresh local low, falling down to 1.3108, but bears were not strong enough to test 1.31. We should say that despite the expected beginning of the ECB’s QE on Thursday, the single currency is depreciating against the dollar much less than its rivals like the pound, yen and the Aussie (read below). Today the main risk for the pair is posed by the Final Services PMI. If this index has been considerably revised in comparison with the preliminary data, it may affect the course of trading. Unfortunately for the euro, now there are plenty of downward more…