In focus: European CPI and US employment

By GG Analyst in Reviews 0 Comment

EUR/USD

Last week the euro was under such a strong pressure that even on Friday EURUSD couldn’t escape falling to fresh local lows. The pair sank to 1.3700, which hasn’t been seen since late February. This can be explained by the short-term flight to dollars for portfolio rebalancing, so traditional for the end of the month/quarter. The forces which further came in effect were less powerful, but they were enough for rehabilitation of the single currency. In the afternoon the pair rose to 1.3770 and closed the week at 1.3750. Today is the last trading day of the quarter, so the dollar more…

ECB is ready for unconventional steps, but will hardly take them

By GG Analyst in Reviews 0 Comment

EUR/USD

ECB is ready to take measures not to let the period of extremely low inflation continue. We keep getting messages regarding this. Liikanen, mentioned yesterday, again spoke about possible introduction of negative interest rates to punish the banks, which park money at ECB and don’t issue loans to business and households. Draghi also didn’t specify anything yesterday, promising to ‘do whatever it takes to ensure price stability’. It’s important that Draghi and even Germany’s Weidmann mentioned quantity easing and negative interest rates among the considered measures. The market has already heard something like that before and it’s been long observed that more…

G7 comments push the euro up

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday G7 leaders signed a joint statement, disapproving Russia’s actions in regard to Ukraine, but at the same time didn’t mention any specific sanctions and left a chance of diplomatic resolving of the conflict open. The markets regarded the statement as quite mild , which helped the single currency recoup the intraday losses. The surge of optimism for a while provoked growth in EURUSD, so as a result the pair jumped from the daily low of 1.3769 up to 1.3875. This considerable scale of growth couldn’t but trigger stop orders, but eventually trading consolidated near 1.3830. Turning to yesterday’s statistics, weakening more…

Two sides of the same day

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency suffered heavy selling. Before that, earlier in the day, bulls had tried to attack and pushed the pair up to 1.3966. But then it was no easy matter to find a reason to purchase the euro. Draghi’s comments and concerns about growth in China delivered a double hit to EURUSD. The ECB governor said yesterday that the forward guidance (implying that the rates will remain at the current or lower level for a long time) would, most likely, put pressure on the single currency. Besides, he added that strength of the currency was getting more and more important more…

EUR flew up on Draghi’s inertness

By GG Analyst in Reviews 0 Comment

EUR/USD

Draghi’s press-conference sent the euro much above 1.38. The single currency is now trading at 1.3850. Excluding a short-term upsurge of the pair in December, the pair was that high only in November 2011. Technically, growth of the pair isn’t likely to face any serious resistance right up to 1.4250. The spring triggered and pushed the pair up by over a figure in a couple of hours. It should be mentioned that the upsurge began 45 minutes before the press-conference, which means that the markets presupposed a possibility of the rate cut or measures to increase liquidity in the region. It more…