Carney stirred GBP selling

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we reported that Monday’s business activity statistics proved to be worse than expected and indicated growth slowdown. Yesterday’s Ifo indicators also fell short of expectations. The Business Climate index has been falling for two months in a row, though even now it is still quite high. What was the euro/dollar’s reaction? None. The single currency continued its attack on the US dollar, going to 1.3627 in the heat of the EU session. Then the pair was affected by caution of the market players, who didn’t hurry to take their profits after hitting a fresh historic high in the US indices. more…

Expanding attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s Flash PMIs for the eurozone could become an unpleasant surprise for the euro, just like frankly dovish comments of Draghi and Nowotny at the weekend and on Monday. Actually, they didn’t. The single currency proved to be strong enough to fight attraction, although absolutely all the Flash PMIs fell short of expectations. The German and EU estimates remain above 50, which separates decline from growth. Anyway, Germany’s manufacture didn’t grow, staying at approximately the same level, and the services sector slowed down its growth. As a result, the composite index tumbled from 56.0 to 54.8 and the Flash Manufacturing PMI, more…

VIX lows, GBP highs

By GG Analyst in Reviews 0 Comment

EUR/USD

The dollar was getting weaker all through the EU session yesterday. Only at 1.3640 bulls eased their pressure, taking their profits. The same situation was observed in the stock exchanges. Now the euro/dollar is trading at 1.36, thus promising a good week for bulls. They will hardly yield here without trying to attack the 200-day MA. All this depreciation of the dollar leads to decline in the VIX volatility index. Earlier we thought that the very approach of the index to its lows would be more than enough and the market wouldn’t go further, since we expected that volatility would grow more…

FOMC’s caution puts pressure on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The mild Yellen has remained her own self. Against our expectations that FOMC would learn a lesson from the financial crisis and would choose another policy for the Fed, it treated the macroeconomic forecasts with great caution after the poor beginning of the year. The long-term GDP forecasts were slightly revised down. Though at the same time the spread between the rates increased, thus reflecting a more hawkish mood than earlier. The markets preferred not to focus on the last moment, seeing only caution regarding the future measures. The markets got quiet about the possible acceleration of tapering and approach of more…

Abe’s third arrow

By GG Analyst in Reviews 0 Comment

EUR/USD

Though the beginning of the day was far from good, the single currency nevertheless grew against the dollar in the course of the day. This morning a fresh tide of growth helped the pair go up to 1.3586. It is a bit above the high set at the end of the previous week, which speaks about bulls’ success in winning back their positions. Their morale should be boosted by the hints of different ECB’s officials at scanty chances of further steps from the Bank.  We hear hints that the ECB will resume bond purchasing to its balance sheet at the very more…