Yesterday afternoon the pressure on the single currency grew high. However, it wasn’t strong enough to endanger the support of 1.30. The reason is absolutely unimpressive news on the EU economy. First of all, Germany’s trade surplus is on the decline. The country had a great advantage in the second and third quarters due to depreciating of the euro. But the return of the euro above 1.30 reduced competitiveness of the European goods in the export markets. Also the continuing austerity inside the region keeps putting pressure on the domestic demand. Later the unemployment stats were released. As expected, unemployment hit more…
Tag Archives: Draghi
Optimism up – USD down
EUR/USD
The market lingered for a while, but eventually came to the conclusion that we described in our previous review. The Fed is expected to extend QE in order to reduce the pernicious effect of the Operation Twist expiry at the end of the year and avert the possible negative consequences of the fiscal cliff. Actually, the US congressmen are lucky to have this kind “Helicopter Ben”, who is always ready to come to the rescue and ease the pain from their own irresolution and failures. For comparison, the ECB’s head, Mario Draghi, agrees to support the financial markets of particular countries more…
Holiday pessimism in Europe
EUR/USD
It’s a funny thing – the market is teeming with moves in various directions. The EU currencies (EUR and GBP) suffered a lot yesterday. Oil is going down in price, while the stock market has grown just like other risky assets. No matter how illogical this move is, there are still some signs that the markets are getting back to reality. So, yesterday the single currency dropped down after the ECB’s revision of the EU economic growth outlook. Mr. Draghi was rather pessimistic in his comments: on average the European economy is forecasted to shrink by 0.3% in 2013. Yet, as more…
Unsteady upturn
EUR/USD
The markets keep going up, albeit rather unsteadily. The common currency is systematically purchased against the dollar. This week the slope of the curve is equal to the one, which was observed in the previous three weeks. Yet, so far there hasn’t been even a single attempt to break lower, as it was one, two and three weeks ago. However, we should mention that opportunities for such a retracement will be quite many in the coming days. The major risk is posed by the ECB’s meeting with the further press-conference of Draghi, scheduled for tomorrow. Regarding the USA, the ADP employment more…
Stats are getting better, but the markets are still on the defensive
EUR/USD
The US markets kept falling yesterday, but it already didn’t mean much for the euro. Going down to 1.2715, EURUSD hit its 2-month low. However, by the end of the day the pair had stabilized around 1.2745 and at the beginning of active trading in Asia jumped up to 1.2780. Now it keeps trading here (above Thursday’s highs). The eventfulness of the day (numerous statistics and the decisions of two CBs) didn’t develop into any high volatility in the markets. Draghi’s comments were moderately optimistic. He noted that the outflow of capitals from the suffering countries’ banks changed into the inflow more…