A short celebration and a terrible hangover

By GG Analyst in Reviews 0 Comment

EUR/USD

The election celebrations at the markets didn’t last a day.  The US stock exchanges and risky assets which eagerly started to grow on the news from the political arena have sharply reversed. Moreover, the stock exchanges and commodities have sunk even lower than they were at the beginning of the rally. The market has quickly returned to its acute problems. The US Congress has come close to the “fiscal cliff” issue. There hardly will be an easy solution to it, especially with the current president, since the Congress is under control of the republicans. The major disagreement between the democrats and more…

Forex celebrates Obama’s victory

By GG Analyst in Reviews 0 Comment

EUR/USD

The winner is Obama. It’s interesting to see in what succession the markets reacted to the news. Oil shot up higher than other markets yesterday. American WTI flew up to $3.8. The US stock exchanges returned to the area of local highs. And Forex patiently waited for the final election results. In EURUSD the reaction to Obama’s victory was seen only at night. The pair rose from 1.2780 by approximately a big figure. The market reaction comes up to our expectations. Obama’s reelection is good news for risky assets and commodities and bad news for the dollar. Unfortunately, it’s too early more…

Market Mysticism

By GG Analyst in Reviews 0 Comment

EUR/USD

The famous market commentator, Mark Hulbert, has written a warning article, where he pointed out that yesterday’s decline of the American exchanges could be the start of a fundamental reversal. As an example he cited the fact that the bullish market of 2000s came into existence right on September 9, 2002. And the decline of 2007 started on October 9. It is creepy to think about the strict periodicity of these events – exactly 5 years. And it’s been just 5 years since 2007. On the one hand, the American markets have enough space for a fall, as they are rather more…

Central and tail-risk scenarios for payrolls

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency shot up yesterday, hitting the level of 1.30 already before the payrolls. Having taken the grip of such an important psychological level before this serious news, the bulls rejoice in their success.  Yet, it’s remarkable that Draghi hasn’t given any new information to the markets. Investors and traders didn’t hope for that and to make out the further cause of actions tried to be attentive to the nuances. The markets arrived at the conclusion that Draghi would prefer to get a bailout request from Spain and probably from Italy as soon as possible to bring all guns into more…

Markets get ready for a spurt

By GG Analyst in Reviews 0 Comment

EUR/USD

Last Friday and this Monday the range of the EUR/USD fluctuations exceeded 125 pips. On Tuesday the distance between the intraday high and low made 90pips, and yesterday’s fluctuations fitted into 60 pips. It will hardly be quiet today. This afternoon the ECB holds its regular meeting. This time no one expects any actions from Draghi. Just words. This Italian proved himself to be an eloquent orator, who can make decisive statements and stick to his guns despite resistance of other countries, even of Germany. Earlier Trichet didn’t show such firmness. This time we shouldn’t expect any new statements from Draghi, more…