Draghi is beginning to resemble Trichet

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro climbed quite high yesterday, after Draghi’s words that the monetary policy doesn’t need any adjustment now. The ECB is still confident in the positive effect of the November rate cut, but adds that it is not very visible yet. We’ve frequently mentioned that the currency markets suffered a period of even higher rates  of the euro short-term loan before the New Year Day. The impact of the decline by quarter of a percent can be noted only with other conditions being equal, which never happens in the market. And the unwillingness to take advantage of inflation slowdown to ease more…

Modest attempts of EUR to grow

By GG Analyst in Reviews 0 Comment

EUR/USD

The Asian markets are making slight attempts to recoup the losses, while the US exchanges are balancing in indecision. The indices have fallen by 5% from their high, but yet don’t rush to pull back, preferring to wait for the US employment statistics first. In regard to EURUSD we can see the formation of a modest uptrend. Having opened at 1.3510 on Wednesday, it closed near 1.3530, yet the intraday low and high were above the corresponding rates of the previous day, and those in their turn were higher than Monday’s rates. This modest tendency can be attributed to the market’s more…

Statistics again hang over EURUSD

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD keeps plying between 1.3490 and 1.3540. Within this narrow range the single currency is expecting important news from Europe, that is the final PMI for the services sector in January and employment in the US private sector by ADP. In the former case analysts on average don’t expect any changes, despite the more optimistic estimate for the manufacturing sector a couple of days ago. If the initial estimate is revised up, it may support the single currency as it will shatter doubts about the ECB’s tomorrow resoluteness. Yet, stats on the US employment have the greatest risk potential. ADP is more…

EUR is among safety assets

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the stock markets suffered a hard blow. The worn-out exchanges of the developing countries were knocked down. Most of them lost more than 2% over the day. Now we have quite an unpleasant situation on hand. The US Fed ignored the warning signals of the slowdown in the business activity and cut the QE programme last week. Thus, the markets are now sure that the only thing which can prevent the Fed from taking a similar step in the future is utterly disappointing statistics from the USA. Against this background the US investors, anticipating further cuts,  very painfully reacted to more…

Attack of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency depreciated against the dollar yesterday. Having started Thursday at 1.3660, EURUSD finished it at 1.3550. It fell right to the area, where it had begun its upsurge a week before on the release of strong PMI stats. In our opinion, that movement was nothing more than washing out of short positions. Too many spoke about strength of the dollar on the threshold of the Fed’s meeting. In such cases big players often announce hunting for stops and kick a part of small investors off the market. It gives an opportunity to sell expensive or buy cheap, depending on more…