USD’s rally to pause at the end of the month

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock market feels more and more confident at a new level. S&P 500 has exceeded 2000 and the global asset market reached the capitalization of 66trln, as calculated by Bloomberg. Before the global financial crisis appreciation of the stock markets often turned out to be USD’s decline and strengthening of the currencies in the developing countries, which also affected EUR and the pound. Though the pound in theory can follow this very tendency against growing chances of the rate increase earlier than in the USA (see below), the euro’s recent weakness has been quite reasonable. And don’t say that more…

EUR is kept off the levels above 1.32

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency didn’t manage to recover yesterday. EURUSD was below 1.32 almost all day long yesterday, though the major rivals of the single currency felt much better. Besides, S&P 500 crossed the level of 2000, which was a significant moment for the markets. The index didn’t move far from this level and went on the defensive right after hitting the level. As we mentioned yesterday, the initial weakness of the euro was maintained by the divergence between the US and EU monetary policies, once again emphasized by the comments of the Fed’s and ECB’s governors in Jackson Hole. But further more…

USD’s across-the-board rally

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency keeps falling against the dollar. The governors of the world’s global CBs in their speeches only emphasized the divergence between the US and EU policies, whereas Madame Yellen was less mild about the monetary policy prospects mainly due to the rather favourable employment statistics in the recent months. Of course, here we should take into account that the strongest data were on the employment/unemployment rate, while the earnings growth and participation rate were obviously far from perfect. But this way or another the EU affairs are much worse. If the US unemployment shrank by 3.8%, the EU one more…

Geopolitics strikes at the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The safe assets are again appreciating. At night Obama permitted air strikes at Iraq, which certainly intensified the geopolitical tension in Eurasia. Ukraine and Russia, Gaza and Israel, Syria and Libya – all these countries are a cause for concern not only among cautious traders already. During yesterday’s press-conference the ECB President Mario Draghi often mentioned sharp strengthening of the geopolitical risks in the region, which tells negatively on the EU economy and puts pressure on the euro. Most likely, the negative, caused by the restriction of the commodity and money flow due to the EU sanctions and Russia’s counter measures, more…

Fundamental strength of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar keeps recouping its losses. It is remarkable that it is growing not only against the euro, but across the whole board. We can even say that the single currency looked steadier than many others yesterday. Thus, EURUSD hit 1.3400 this morning. And this is the lowest levels since last November. Actually, we can already speak about the beginning of a rally in USD. And behind it there are perfect macroeconomic statistics. Yet, it is still disputable if the Fed’s policy will lag behind these data. In addition to the news which feeds USD’s strength, yesterday there was a more…