Dollar is looking for the bottom

By GG Analyst in Reviews 0 Comment

Dollars

EURUSD

American dollar continues to pull back and now this looks like capitulation. Its decrease identified against most assets, while USD index lost around 1.2% for more than last 24 hours, reaching the main support levels. The bulls may upset by the fact that coming news is not making favor for American currency. Advance GDP, released yesterday, was worse than expected. The first three months got 0.5% yoy against expectations 0.7% yoy. This is hardly visible 0.1% in usual for us estimation. Contrary to this growth of European economy reached 0.6% as released by Eurostat today. Though, the expected growth was only more…

A creeping dollar

By GG Analyst in Reviews 0 Comment

Bull-NYC

EURUSD

The pair is slowly sliding down, recovering the previous growth and formatting the expectations for the further more serious turn. The possibility of such scenario will rise when (and if) EURUSD breaks the support line of the climbing channel that appeared at the beginning of March. Currently, there is a threat that pair will drop below 1.1300, 50 points lower from the current prices. However, it is difficult to find among macroeconomic news the only one, which is strong enough to move market from the current trend. Strong data from the non-production USA sectors in March influences market less than usual more…

Clearer deflation in Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

The EU inflation keeps slowing down. The most important news here came yesterday from Germany, which didn’t see any price growth in November after the decline by 0.3% a month before. Yet, the annual inflation rate dropped to 0.6%. Last time inflation was that low at the end of 2009 because of the economic meltdown and cut in consumer spending. Now the situation is a bit different. The unemployment level is the lowest since the time of Germany’s reunification, as was shown in the employment report for November. Besides, it was messaged that the number of the unemployed had decreased again more…

Poor US stats push EURUSD above 1.25

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency continues its ascent due to USD’s retreat. The latter is under pressure since the economic statistics proved to be poorer than expected by market participants. Actually, it is a franker acknowledgement of the necessity to lock in profits in USD before the final phase of the year. After Thanksgiving Day the market is likely to get more speculative and nervous. It can be vulnerable to sharp upsurges (the Pre-New Year rally) and dips (correction before the end of the year). But since in the preceding months we have seen impressive growth of the US currency and assets, correction more…

Sentiments causing a pullback

By GG Analyst in Reviews 0 Comment

EUR/USD

The market’s unwillingness (or inability) to continue purchases of USD is so strong that it contradicts the current macroeconomic background and forces market participants to look for any chance to lock in the profits. Thus, yesterday’s revised statistics on GDP in the third quarter proved to be surprisingly strong. The annualized growth made 3.9% against the preceding rate of 3.5% and the expected downward revision to 3.3%. The growth rate against 3Q of the previous year totaled 2.4%, which speaks about quite an impressive economic growth. Also, it should be noted that the Personal Consumption Index also rose by 2.2%. Earlier more…