EUR bears should be more eager

By GG Analyst in Reviews 0 Comment

EUR/USD

Despite the blow Draghi delivered to the single currency last week  and also the pressure put by the employment statistics, the single currency is still strong enough to make its way up. The charts show a series of ascending intraday lows: 1.3293, 1.3317, 1.3358. In the short term these data can be enough to be bullish, but regarding a longer term it is quite dangerous to purchase the single currency at the current levels. Trading is now held at 1.3430 and it is the highest rate which EURUSD corrected to after the rate cut announcement. It is quite likely that the more…

The broken attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment statistics proved to be favouable, though all the short-term growth potential of EURUSD had been “eaten away” by the market movement a day before. As a result, the dollar bulls failed to bring the pair below the lows of the previous day, yet the decline from 1.3435 to 1.3312 can hardly be called unimpressive. So, what was good about the employment statistics? First of all, the number of new jobs in October exceeded 200K (204), moreover the rates of the preceding two months were also revised up. Thus, the average rate for the last three months is also more…

Fast and furious Draghi

By GG Analyst in Reviews 0 Comment

EUR/USD

Draghi, who yesterday celebrated the second anniversary of his tenure as president of the ECB, acted in a very unexpected way. The ECB lowered the refinancing rate by 25 basis points to 0.25%. The deposit facility rate was kept unchanged at the zero point. The interest rate was also cut by 25b.p. to 0.75%. At best the governing council was expected to have given some hints at taking action in a month or to have announced liquidity support through other tools of the ECB. Draghi again proved to be more maneuvering than considered by many. At the press-conference he pointed out more…

The market froze expecting Draghi and US stats

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex in general and EURUSD in particular are still in the standby mode, all waiting for Draghi’s commentary to the decision of the ECB’s governing council and for the release of the US GDP for 3Q and of unemployment claims, which can help to determine the trends of the labour market before tomorrow’s payrolls. The consensus forecast of economists doesn’t speak about changes in the refinancing rates and the deposit facility rate, but the community is waiting that Draghi will point out some measures to normalize liquidity in the banking sector of the region, as the latter is stalled getting ready more…

USD abstains from the further attack

By GG Analyst in Reviews 0 Comment

EUR/USD

USD doesn’t feel like leaving the gained positions for long, but at the same time it is not strong enough to go further. For now. Some improvement seen in EURUSD on Monday was leveled down by the decline on Tuesday. It is remarkable that there was no bad news from Europe. The markets simply fear dovish comments that Draghi can make at the press-conference tomorrow, hinting at taking action in December. Strong advocates of active measures call on the CB to loosen lending standards already in November. The latter is hardly possible. Yesterday Mario Draghi pointed out that the EU affairs more…