EUR doesn’t surrender 1.37

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar has been depreciating for the recent two weeks. Despite the fact that during the last week the pair has mainly been close to 1.3700, we can’t but notice that bears still contrive to push it lower and lower before bulls gain revenge. Yesterday’s local low preceding the FOMC meeting minutes brought the euro to 1.3634. The minutes themselves proved to be milder than could be expected. The news released before the meeting on April 29-30 was generally positive, so the market expected to see more confidence about tapering and, probably, more certainty about rates. However, ‘flexibility’ in consideration of more…

EUR moved away from the extremums

By GG Analyst in Reviews 0 Comment

EUR/USD

In the absence of important news players tried to take profits from the preceding growth in the pair. Because of that the pair moved away from the extremums and hit 1.3900 this morning. Today the markets will be focused on Draghi’s speech at the press-conference after the rate decision. It’s quite possible that we will hear again about readiness to act and that the continuous low inflation will be pernicious for the economic growth. Not only the market participants, but also journalists of every stripe and colour have been long in the know about this chapter of economic theory and as more…

Bulls’ feast

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the dollar hit fresh multiyear lows in Forex, depreciating against the majority of its rivals. It is remarkable that it was boosted not only by the news on the dollar, but also by the relatively favourable statistics from other countries. The contrast between the USA and other countries is no longer that sharp. But, let’s start from the beginning. The EU PMIs generally proved to be better than expected, which contributed to growth of the single currency against USD. In addition, Portugal officially has exited the bailout two weeks ahead of time. Ireland exited it already in December, Spain did more…

Plain payrolls, mixed reaction

By GG Analyst in Reviews 0 Comment

EUR/USD

Friday’s data on the US employment proved to be surprisingly favourable. The employment grew by 288K and the statistics for the preceding two months were revised up by 36K in total. The unemployment decline, which looks really shocking at first sight (from 6.7% to 6.3%) is ensured by another decrease in the workforce. In April the participation rate again occurred at 62.8%. This is a low, which has been hit only twice in modern times – in October and December 2013. Before that the indicator was that low only in the late 70s, but at that time it was in the more…

Roller Coaster

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was put under heavy pressure after the release of Germany’s inflation data. EURUSD dipped down to 1.3800, formally leaving the gap uncovered: the high was hit at 1.3878. As expected, Germany’s consumer inflation proved to be lower than forecasted by the experts at the beginning of the week. The annual rate of price growth in the largest German economy made 1.3% against the expected 1.4%. This acceleration against last month’s 1.0% y/y was provoked purely by the low base effect as in April the prices tumbled by 0.2%. The ECB members often say that the long period of more…