ECB is ready for unconventional steps, but will hardly take them

By GG Analyst in Reviews 0 Comment

EUR/USD

ECB is ready to take measures not to let the period of extremely low inflation continue. We keep getting messages regarding this. Liikanen, mentioned yesterday, again spoke about possible introduction of negative interest rates to punish the banks, which park money at ECB and don’t issue loans to business and households. Draghi also didn’t specify anything yesterday, promising to ‘do whatever it takes to ensure price stability’. It’s important that Draghi and even Germany’s Weidmann mentioned quantity easing and negative interest rates among the considered measures. The market has already heard something like that before and it’s been long observed that more…

G7 comments push the euro up

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday G7 leaders signed a joint statement, disapproving Russia’s actions in regard to Ukraine, but at the same time didn’t mention any specific sanctions and left a chance of diplomatic resolving of the conflict open. The markets regarded the statement as quite mild , which helped the single currency recoup the intraday losses. The surge of optimism for a while provoked growth in EURUSD, so as a result the pair jumped from the daily low of 1.3769 up to 1.3875. This considerable scale of growth couldn’t but trigger stop orders, but eventually trading consolidated near 1.3830. Turning to yesterday’s statistics, weakening more…

USD wins back important technical levels

By GG Analyst in Reviews 0 Comment

EUR/USD

The bulls found enough strength to repel another attack against the euro on Friday. It would have been too impudent of them to put the euro/ dollar down to another local high for the third day in a row, depriving it of over two figures. It didn’t happen though and the situation was developing under the basic scenario, that we had described earlier on Friday. EURUSD was gradually rising to 1.3800 and even got above that level for a while. Anyway, the week was closed below that level, the general downtrend still holds. The geopolitical tension around the Ukraine is still more…

Steel nerves of US investors

By GG Analyst in Reviews 0 Comment

EUR/USD

The pressure didn’t weigh on the markets for long. There is a strong feeling that there is little that can distract investors from buying the US stocks: neither overbought markets, nor geopolitical troubles in Europe, nor bringing of the Fed’s rate increase closer by half a year. The decline of the US stock indices caused by Yellen’s comments on Wednesday was bought out yesterday and by now we’ve returned to the same positions as last week and are generally in the area of record highs. Anyway, we can’t say the same about the euro/dollar. Yesterday purchasing of dollars against the EU more…

FOMC is braver than expected

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed’s commentary provoked strengthening of the US dollar. Purchasing was caused mostly by the increased intention to raise the rate next year. It is not stated in the published forecasts, but observers have figured out that these forecasts speak about a possibility of the rate increase approximately in the middle of the next year. If actual and forecasted data differ significantly, the QE3 programme may be brought to a close already this year. Yesterday’s cut, as expected, made 10bln dollars. Besides, FOMC chose not to peg interest rates to the unemployment rate, but consider a wider range of indicators. Apparently more…