USD’s attack on EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was depreciating all day long yesterday. The pair managed to stop its decline only close to 1.3520. Now trading is held about 10 pips above this local low. Despite the fact that the considerable part of the decline occurred after Yellen’s speech before the Congress on Tuesday, it is hard to find connection between these events as other currencies don’t show such dynamics. The cable, the Aussie and the yen suffered some losses yesterday and the Loonie didn’t manage to grow. The reason for the pressure put on the euro is seen in the policy easing in the more…

GBP is the only one to resist USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The comments, preceding yesterday’s speech of Yellen, often contained hints at the possible beginning of an uptrend in USD. Actually, Yellen’s speech was of the same mood as the previous comments, that is rather dovish and cautious. Anyway, market participants got what they wanted – the dollar started its ascent. Addressing the Congress yesterday, Yellen drew attention to the persisting high rate of unemployment and the need for the stimulating monetary policy. In our opinion, these words clearly unveil the fear to allow sharp and quick toughening of the monetary policy and repeat the mistake, made by the Fed in the more…

Bulls leave no hope

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar retained the positions gained on Thursday, remaining at 1.36 against the euro. In the meantime, commentators are considering the issues of the Portuguese Bank as a small hitch, which shouldn’t be exaggerated. They’d better regard it as a canary in the coal mine. Anyway, in general investors are positively disposed now, which is mainly a result of the strong US employment statistics. These data (employment growth by 288K in June and returning of the weekly unemployment claims close to 300K) increase chances of inflation acceleration in the coming months. Yet, the participation rate is rather low and in more…

Europe’s periphery again catches attention

By GG Analyst in Reviews 0 Comment

Though James Bullard is not a voting member of the Fed now, he is still concerned with the Committee’s inside. For this reason his comments that FOMC could start increasing the rates earlier than expected by the market stopped the US dollar from falling in the morning yesterday. And then the almost forgotten fear again fell upon the markets, the fear about Europe’s ‘troubled’ countries and their financial sectors. The second largest bank of Portugal aroused particular concerns around its solvency, as Espirito Santo International, a shareholder of Banco Espirito Santo SA, missed short-term debt payments. It immediately stirred concerns about more…

EUR grows against the news

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is trying to grow against the news. The main reason for bulls’ enthusiasm is the cautious tone of the ECB members, who are usually neutral about the monetary policy. The Bank’s representatives  make it clear that QE can be expected only if the situation  in the EU deteriorates sharply. Now it’s hard to imagine what it can be – either a new spiral of the debt crisis or, which is more likely, economic slowdown with inflation remaining low. It’s important that investors should ignore signs of economic slowdown in the eurozone, as across the ocean there aren’t any more…