Looking through the glass or September against May

By GG Analyst in Reviews 0 Comment

EUR/USD

Over just one day the single currency crossed 1.30 and made a fresh advance to 1.31.  Now trading is at 1.3120, and the daily high of Friday was around 1.3170. Looking at the current rates, it’s hard to believe that only 2 weeks ago bulls and bears were fighting for 1.25. The double whammy, from Draghi and Bernanke, made the dollar retreat on all fronts. It’s remarkable that this should happen against the ongoing issues in the peripheral part of Euro Zone. The troika is going to release its report on the Greek affairs only in October, thus deferring the verdict more…

Risk on

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was under a heavy pressure of markets yesterday, which pushed it down to 1.25. However, being again supported by the markets, the euro didn’t fall below this mark. It seemed that traders postponed the attack of the important levels for today or tomorrow. Later the single currency managed to consolidate success on the news leak from the ECB. The news that two ECB’s officials unveiled the details of Draghi’s plan let the single currency consolidate solidly above 1.25. The details are as follows: the asset purchase programme will be unlimited, however liquidity injecting will be sterilized. The Bank more…

Has the market squatted before a jump?

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro slumped during the EU session yesterday and continued the decline this morning. We can observe the formation of a double top above the level of 1.26 and the rates are now close to 1.2530. The newsfeeds describe this move down as a risk-aversion impulse on the concerns that the ECB’s actions won’t be as large-scale as expected earlier. We believe that yesterday’s move shouldn’t be fussed about, as EUR/USD remains within the upward channel and, moreover, is half a handle below its boundary. A good rally is often preceded by a slight drop, which makes buying of the instrument more…

Fewer and Fewer doubts: QE will kick off in September

By GG Analyst in Reviews 0 Comment

EUR/USD

How capricious the markets are! On Friday Bernanke expressed his grave concern about the current state of affairs in the labour market. In fact, formally this sphere is hardly the most troubled one in the USA. So it is just a political trick, a kind of attempt to inject another portion of adrenalin in the economy before the elections. It is meant to assure electors that the present government has done enough to stimulate the economy and is now busy with other, more understandable for the electorate, issues instead of rescuing the banks or housing market, which makes less than 10% more…

Good that Draghi won’t attend Jackson Hole symposium

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s amazing that the news about the absence of Draghi and other members of the governing board at the symposium in Jackson Hole should give so much help to the single currency. Anyway, there is a core of sense. Draghi is said to be busy drawing up a plan of Europe’s bailout. But being honest, most of the time is of course spent on searching for the compromise and arguments in favour of further expanding of the ECB’s balance sheet. It is very likely that Draghi and his followers are trying to persuade that it’s not the best variant to reply more…