USD is growing non-stop

By GG Analyst in Reviews 0 Comment

EUR/USD

Euro-bulls were disappointed. Those, who bet that the ECB’s differences wouldn’t let Draghi continue with policy easing, proved to be wrong. Yes, we also were of that opinion, so a sharp drop of the single currency from the current levels proved to be a kind of surprise to us as we had expected some consolidation near 1.2500. Besides, the US employment data, which initially had passed unnoticed, again exceeded the expectations. The number of weekly unemployment claims had shrunk by the beginning of November to 278k. Moreover, the number of continuing claims decreased dramatically and hit a multi-year low yesterday. In more…

Out of control

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency has again fallen under pressure today. On Monday the pair hit a fresh 26-month low at 1.2438. Then the pair was in moderate demand and grew to 1.2575 at some point. Against the global growth of the dollar the single currency got support from messages that Mario Draghi’s colleagues are displeased with his management style and are trying to restrain his intention to continue easing the policy till the end of the year. In the recent weeks speculations have been around the dilemma whether the ECB will launch a programme of quantitative easing or abstain from it. The more…

Time of great motions?

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency managed to rally its strength, relying on the support at 1.2550. Today the pair remains under pressure so this level can fail to withstand the attack. USD’s appreciation is explained by its strength against the yen during the Asian session and also by the reduction of commodity prices, which cools down interest in the commodity currencies. Yesterday’s statistics were a bit more positive than expected, both for the euro and the dollar. Industrial and Services Confidence and their general index surpassed expectations, while Consumer Confidence remained the same. It is lightly positive news for the EU currency. more…

Fed ended QE without scruple

By GG Analyst in Reviews 0 Comment

EUR/USD

The Federal Reserve finally put an end to bond purchasing, as had been mentioned in the earlier plans of the Committee. It was feared that the Fed would soften its stance in view of the inflation which proved to be weaker than expected and of the recent sharp decline of the stock markets. Instead of this the Committee focused on the favourable data on employment and also on consumer and business spending, explaining that these trends can become a reason for inflation acceleration. Logic is simple here. Lower unemployment increases competition between employers, which results into acceleration of earnings growth and more…

Not everyone can make USD retreat

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s US statistics put a negative impact on the dollar. Investors’ disappointment was aroused by the utterly poor data on durable goods orders. The decline of the general index by 18.3% in September didn’t entail recovery. In September the volume of orders fell by 1.3%. The core industries, without considering orders in the transport sector a month earlier, have grown by 0.7% and in September they lost 0.2% instead of growing by 0.5% as expected. This picture speaks about cautiousness of corporations regarding economic prospects. In its turn, it can lower investors’ optimism about the prospects of the labour market, which more…