The market is going for safety instead of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The dissonance between the stock and Forex markets still persists. While the single currency hit a new high since late February, trading already at 1.3350, S&P 500 dropped to the levels of early May. The index futures has been declining for the last three days, thus showing that traders have reappraised the state of the US economy. Over the last couple of weeks there were enough indicators which made investors take off the rose-coloured spectacles. Naturally, against this background Europe is no longer the worst variant. Yet, the last rally has been too long. The reversal for growth began on May more…

EUR broke through 1.33

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we once again observed dissonance among the markets. The dollar and stock exchanges were falling at the same time. Each move can be explained, but it’s not very often that you see risk-aversion and purchasing of the European currencies together. The recent dynamics is the reverse of the preceding moves, when against the positive news from the USA the country’s domestic assets were in demand and it was also clear that the Fed was more likely to toughen its policy than the ECB. Last week we got visual evidence that those considerations were a bit exaggerated. The US economy is more…

Enjoyed the rally? Probably, it’s not the end

By GG Analyst in Reviews 0 Comment

EUR/USD

Did you like it? Several factors coincided at once to provoke heavy selling in the dollar, which only in EURUSD resulted in a move of 270pips from the daily low to the daily high. Moreover, having risen from 1.3090 to 1.33 for less than five hours after Draghi’s speech, at night the single currency was consolidating at 1.3340, it means traders have gathered their profits and do not hurry to purchase dollars. Let’s look into the reasons. First of all, during the day the US currency was gradually weakening as a result of the preceding poor statistics, which reduced the likelihood more…

Unsteady growth of EURUSD

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro bulls were very close to breaking through 1.31 yesterday. The uptrend in the euro can tell favourably on the demand for debt securities of the EU troubled countries. Another positive fact from the technical viewpoint is breaking through the 200-day MA, which happened last Thursday in the volatile session after Draghi’s speech. Besides, strengthening of the single currency goes in line with our opinion regarding Forex and its cycles. The fundamental data keep us from recommending to stake everything on buying the currency. First of all, we have a continuous uptrend of the US stock markets, which may start more…

Forex wild dancing

By GG Analyst in Reviews 0 Comment

EUR/USD

It was a nervous and busy day yesterday. The single currency was yielding to the pressure put by the dollar demand. Here we observe quite a strange correlation and would like to enlarge on it. The large-scale selling of the yen stirred all the crosses with it, which in its turn forced market players to take their profits and switched to the liquid assets like dollars. This is where the decline of the euro by the beginning of the EU session came from. Further the initial decline was gradually offset. But still the pair hadn’t managed to recover fully by the more…