The need and chance for easing by ECB

By GG Analyst in Reviews 0 Comment

EUR/USD

On Friday USD purchasing continued and only on Monday we could see some stabilization. However the latter had been preceded by a serious attack on the euro during the Asian session, due to which EURUSD had tumbled down to 1.3440 at some point. It happened on reaction to the words of FOMC’s Richard Fisher, who criticized the US government for impeding the recovery. Anyway, the single currency found strong support at the level of its 7-week lows. The thing is that the pair has been purchased more than once at 1.3470 since the end of September. Later the pair stabilized at more…

EUR fell in anticipation of the rate cut

By GG Analyst in Reviews 0 Comment

EUR/USD

Such strong fluctuations in the euro aroused by inflation stats haven’t been seen for long. Inflation at 0.7% y/y in the eurozone (against the expected 1.1%) made EURUSD drop by about two figures. By now EURUSD has declined to 1.3539, taking into account that Thursday’s high was at 1.3738. Undoubtedly, selling of the euro coincided with the period of the dollar’s appreciation at the beginning of the day, but then the decline was getting momentum on its own. The low inflation rates, which were observed both in strong Germany and weak Italy, enabled large investment banks to expect that the ECB more…

Draghi isn’t anything like he used to be

By GG Analyst in Reviews 0 Comment

EUR/USD

Having stopped consolidating, EURUSD has moved upwards. The pair is testing 1.3600 now, which hasn’t been seen since February. Honestly speaking, it is somewhat against our expectations as lately we’ve observed mainly worsening of the released statistics. This has allowed us to suppose that the growth impulse is dying. Anyway, yesterday traders’ attention was all focused on Draghi’s speech, in which the ECB’s governor didn’t say a word about the need for measures to improve lending in the region. The euro grew on such claims as before that the CB’s members had expressed their readiness to take such a step. Yet, more…

Draghi put pressure on the euro, Carney failed to put pressure on the pound

By GG Analyst in Reviews 0 Comment

EUR/USD

ECB chief Mario Draghi made it clear that he remains dovish at yesterday’s press-conference after the rate decision. When commenting the decision he pointed out that the Bank is ready to take action in case of need. These words gave rise to selling of the euro as traders had expected more optimistic comments after a series of positive data. However, Draghi explained that a couple of positive PMIs, which have just entered the positive territory, doesn’t imply large-scale growth of activity and doesn’t affect the Bank’s forecasts on the EU economy. Also Draghi is right repeating that he will keep the more…

The ECB and BOE emphasize differences of their and the Fed’s policies

By GG Analyst in Reviews 0 Comment

EUR/USD

The European CB and a bit earlier the Bank of England contributed to decline of their domestic currencies by 0.9 and 1.3%, respectively. The differences in the economic situations of these countries made the heads of these CBs accentuate the differences of their policy and that of the USA, which is about to negotiate the stimulus rollback. Thus, at yesterday’s press-conference Draghi put a special stress on the phrase that “the key ECB interest rates would remain at present or lower levels for an extended period of time”. Just two press-conferences ago he said that the Bank “never pre-commited”. It was more…