Bad news from Europe can be trumped only by bad news from the USA

By GG Analyst in Reviews 0 Comment

EUR/USD

Not otherwise than to emphasize the advantageous position of the USA over Europe data on the European manufacturing activity proved to be poor. What is especially unpleasant is that these were final data which generally do not differ much from the preliminary estimate, but this is not the case now. The Italian PMI came in at the lowest level in the history, having lost at once 4.1 points from March to April. The April PMI figure for France was revised from 47.3 down to 46.9. The estimate for Germany was cut down to 46.2, the lowest level since July 2009. Such more…

The dollar keeps strengthening – be careful

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro decline, started after the release of the Fed meeting minutes, persisted for most part of the day yesterday. EUR/USD fell down to 1.31, though a couple of days ago it was high at 1.3350. Technically the euro/dollar is close to an important support level. The continuous slackness in the preceding days spilt over into the vigorous action. However, it seems to subside now on the reduced volumes before the holidays. It’s of interest that yesterday’s euro sales occurred on the upward revision of Services PMIs in the greater part of Europe. In March the Euro-zone final services PMI made more…

Fed’s cautiousness about further incentives triggers the dollar rally

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed’s minutes published yesterday afternoon produced a dramatic influence on the market. They made it clear that the Fed is now less inclined to provide further incentives for the economy. Speculators immediately reacted to that, having started to buy dollars and sell risky assets and currencies. As a result, the single currency, for example, sank from 1,3340 to 1,3215 in an hour. During the Asian session sales continued, which brought the pair below 1,32. Exactly the soft Fed’s policy, which doesn’t fully fit the current circumstances, is called the impetus of the 30% rally in the stock markets since last more…

European bears, American bulls

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s great when officials pay their attention to the same figures as analysts do. Like was mentioned yesterday, although filling of the European banks with liquidity has helped to save the regional financial system from complete collapse, it still hasn’t reached the ultimate goal that Draghi talked about. Namely, it hasn’t managed to increase lending to the business and household sectors. However, as the ECB’s vice-president quite unexpectedly put in his speech, the Bank didn’t pursue the goal of supporting lending in the region. It’s a bit surprising. At the same time, the situation in Spain is becoming tenser and tenser. more…

Has ECB’s liguidity reversed the falling lending trend?

By GG Analyst in Reviews 0 Comment

EUR/USD

As reported in the press, the European leaders are considering the possible extending of bailout funds. Released at the end of the day, this news managed to restore confidence in the markets and hold the euro back from falling. As a result, EUR/USD is trading evenly at the same level as a day ago, around 1,3310. Not very prominent, but quite alarming news came in yesterday from the ECB. As shown in the regular statistics, M3 Money Supply grew from 2,5% to 2,8% in February. It indicates the reversal from the terrible figures of December and accounts for the ECB’s liquidity more…