USD is growing non-stop

By GG Analyst in Reviews 0 Comment

EUR/USD

Euro-bulls were disappointed. Those, who bet that the ECB’s differences wouldn’t let Draghi continue with policy easing, proved to be wrong. Yes, we also were of that opinion, so a sharp drop of the single currency from the current levels proved to be a kind of surprise to us as we had expected some consolidation near 1.2500. Besides, the US employment data, which initially had passed unnoticed, again exceeded the expectations. The number of weekly unemployment claims had shrunk by the beginning of November to 278k. Moreover, the number of continuing claims decreased dramatically and hit a multi-year low yesterday. In more…

EUR clings to 1.2500

By GG Analyst in Reviews 0 Comment

EUR/USD

Euro-bears almost reached the preceding lows in the pair. EURUSD dropped down to 1.2456 during the day, yet the weekly low of 1.2437 was left untouched. While the morning weakness could be accounted for by the disappointing rates of the EU Final PMIs, the pair’s recovery during the US session could hardly be explained by any fundamental factors. But let’s relate everything in due order. The Services PMI and Composite PMIs for Italy and France proved to be in the green zone, besides the Italian activity in the services sector even became more intense in comparison with the previous month, which more…

Out of control

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency has again fallen under pressure today. On Monday the pair hit a fresh 26-month low at 1.2438. Then the pair was in moderate demand and grew to 1.2575 at some point. Against the global growth of the dollar the single currency got support from messages that Mario Draghi’s colleagues are displeased with his management style and are trying to restrain his intention to continue easing the policy till the end of the year. In the recent weeks speculations have been around the dilemma whether the ECB will launch a programme of quantitative easing or abstain from it. The more…

China supports optimism of the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the ECB purchased French BTFs, this way starting QE in its region. Of course, yesterday’s fluctuations couldn’t put any significant impact on the market, but they were quite able to change the mood of its participants. It didn’t happen though. Traders were purchasing the single currency. They keep doing it now as well, hoping that these measures will contribute to quicker recovery of the eurozone. Since the beginning of 2013 the ECB’s balance has been shrinking as banks were allowed to return loans, issued earlier within the LTRO programme. These returns have cut the CB balance by about a third, more…

The bearish market for Oil

By GG Analyst in Reviews 0 Comment

EUR/USD

The pressure on the dollar failed to last for all day long yesterday. EURUSD was reversed near 1.2800 and pushed off to 1.2665 during the New-York session. This decline made up for almost all losses suffered on the release of FOMC’s minutes. Now the pair is close to the support level of the short-term trend. If in the coming hours bears become more active and manage to push the pair below yesterday’s lows, the dollar will be strong enough to resume its rally and continue growing in accordance with the fundamental indicators. However, should the upward movement continue, we will probably more…