Clearer deflation in Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

The EU inflation keeps slowing down. The most important news here came yesterday from Germany, which didn’t see any price growth in November after the decline by 0.3% a month before. Yet, the annual inflation rate dropped to 0.6%. Last time inflation was that low at the end of 2009 because of the economic meltdown and cut in consumer spending. Now the situation is a bit different. The unemployment level is the lowest since the time of Germany’s reunification, as was shown in the employment report for November. Besides, it was messaged that the number of the unemployed had decreased again more…

Asia is on the defensive

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency continued its trip up on Monday. As a result, it reached a high of 1.2440. Ifo Business Climate proved to be better than expected and grew for the first time since April, while had been expected to fall. The index grew from 103.2 to 104.7 against the expected 103.0. Both the components of the index rose – Current Assessment and Expectations. Under such conditions growth of the single currency could be stronger, but it didn’t happen because of the pressure the euro suffers from the expectations of a more active extension of the ECB’s balance for the sake more…

Deceitful weakening of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar opened the week with a gap against the EU currencies, but immediately lost its advantage. The negative factor here was the ECB’s mood for further easing of the monetary policy and expansion of the incentives by possible bond purchases. After Draghi’s speech to the Parliament at the end of the previous week it became more possible that during the press-conference at the beginning of December it will be announced how fast and on what terms the European CB will purchase public debt of the EU countries. As it is absolutely clear that the current bond purchases are miserable more…

Despite the strong statistics USD suffers pressure

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is still being purchased. Besides, since yesterday EURCHF has grown by about 15 pips, which is not much, but is a weekly high. Thus, the SNB can be behind this support for the single currency. But if it is the work of the Swiss, the Bank will soon start selling the euro and buying other currencies for diversification of the reserve portfolio not to stake solely on the depreciating euro with the negative interest rates. Now EURUSD is trading at 1.2560 – it is close to the weekly highs. But also it should be noted that the support more…

EURCHF is close to the line

By GG Analyst in Reviews 0 Comment

EUR/USD

The disappointing rates of the Japanese growth would keep putting pressure on the global stock indices but for Draghi’s speech yesterday which brought some relief to the market. The  ECB’s governor again pointed at the readiness to provide more incentives, including bond purchases in case inflation goes below the forecast inflation. These comments boosted demand for stocks of the EU periphery and for stocks around the world as well. Tapering in the US didn’t put an end to the epoch of easy money. Now it is coming from Japan and the eurozone. Moreover, members both of the European and Asian CBs more…