They sold Euro before Draghi’s speech

By GG Analyst in Reviews 0 Comment

Mario Draghi

EURUSD

Traders could not resist the tension. After quite stable growth inside a tight channel the pair broke its support at 1.1350 and went down for more than a half figure. Today traders have enough time before the coming Draghi’s speech, therefore they are not in hurry to buy cheaper euro but instead boosting selling. Except risks of monetary policy, pressure to common currency caused either by higher demand for risky assets that makes the protective function of the common currency less attractive. Moreover, we should notice good indicator of home sales. Existing Home Sales in March added 5.1% that was higher 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…

Deceitful weakening of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar opened the week with a gap against the EU currencies, but immediately lost its advantage. The negative factor here was the ECB’s mood for further easing of the monetary policy and expansion of the incentives by possible bond purchases. After Draghi’s speech to the Parliament at the end of the previous week it became more possible that during the press-conference at the beginning of December it will be announced how fast and on what terms the European CB will purchase public debt of the EU countries. As it is absolutely clear that the current bond purchases are miserable more…

EURCHF is close to the line

By GG Analyst in Reviews 0 Comment

EUR/USD

The disappointing rates of the Japanese growth would keep putting pressure on the global stock indices but for Draghi’s speech yesterday which brought some relief to the market. The  ECB’s governor again pointed at the readiness to provide more incentives, including bond purchases in case inflation goes below the forecast inflation. These comments boosted demand for stocks of the EU periphery and for stocks around the world as well. Tapering in the US didn’t put an end to the epoch of easy money. Now it is coming from Japan and the eurozone. Moreover, members both of the European and Asian CBs more…