China supports optimism of the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the ECB purchased French BTFs, this way starting QE in its region. Of course, yesterday’s fluctuations couldn’t put any significant impact on the market, but they were quite able to change the mood of its participants. It didn’t happen though. Traders were purchasing the single currency. They keep doing it now as well, hoping that these measures will contribute to quicker recovery of the eurozone. Since the beginning of 2013 the ECB’s balance has been shrinking as banks were allowed to return loans, issued earlier within the LTRO programme. These returns have cut the CB balance by about a third, more…

Will FOMC revise its plan to terminate QE in October?

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency keeps drifting near 1.2750, having no desire to fall and no strength to grow. The six-week decline of stock indices arouses more and more concern among the Fed’s officials. Though they don’t assert that this behaviour of the markets will make FOMC revise its plan to end QE in October, they still promise to consider it in the coming days. Rosengren, President of the Federal Reserve Bank of Boston, said that QE will be finished in October if nothing dramatic occurs. So now market participants are trying to make out how dramatic the recent sale, which lasted for more…

Stock exchanges set the trend

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the euro-bulls didn’t let the pair cancel out the growth of Wednesday. The pair was picked up on the dip to 1.2700 and was pushed off above 1.2800. It’s absolutely unbelievable volatility in comparison with that mire, we observed last summer, when VIX reached the pre-crisis lows. Now it is at its three-year highs due to the impressive correction in the stock indices. It is that very profit-squeeze, we mentioned so often before. To be honest, we expected it much earlier, so now buyers’ enthusiasm has significantly subsided after hitting 2000 in S&P500. Another, more direct, reason for the beginning more…

Weak Oil again supports USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the euro was under pressure due to another tide of demand for the dollar. The US currency again enjoys popularity in view of growing concerns about the oil price wars, unleashed by Saudi Arabia. The main player of OPEC agreed to lower the release price of oil for China, which entailed higher pressure on the global oil rates. For the most part, this policy of Arabia comes from the intention to preserve its share in the market and keep the USA out of the shale oil business. It is supposed that if this business  remains on the edge of profitability, more…

Pernicious for USD, favourable for EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

The US market was trying to form a rebound off the weekly open almost all through the day yesterday, but these attempts were ruined by the bears’ finale. As a result, the stock exchanges again fell sharply, developing last week’s decline. This behaviour of the stock market has a beneficial impact on EURUSD. During bears’ attacks the euro is growing against the dollar. Yesterday afternoon the pair went as high as 1.2757, thus growing by a figure and a half over the day. The fluctuations of the recent week vividly show how much the market volatility has increased. Traders are trying more…