EM vs DM

By GG Analyst in Reviews 0 Comment

EUR/USD

In the Fed default softness gave place to default tapering. Yesterday FOMC announced reduction in purchasing of bonds and mortgage-backed securities by 10bln dollars starting with the next month (by 5bln in each group). This decision in general met the market expectations as the reaction was relatively moderate. The range of fluctuations in EURUSD after the news release didn’t exceed 30 pips. Partly it was due to the fact that earlier in the day there was stop-hunting with orders collected between 1.3650 and 1.3600. It was really surprising to see how EURUSD dropped from 1.3685 to the daily low of 1.3602 more…

Emerging defensive

By GG Analyst in Reviews 0 Comment

USD/TRY

Emerging markets are on the defensive now. The capital outflow from such countries as India and Turkey made their CBs sharply raise the interest rates, thus making investment in these currencies more attractive. Last night the Turkish CB increased its overnight lending rate from 7.75% to 12%, and one-week repo rate from 4.5% to 10.0%. This measure, surprising in its scale, boosted a rally in the emerging markets and supported strengthening even of such currencies as the Australian dollar. Albeit at a smaller scale, yesterday the Russian CB conducted interventions at approximately a billion dollars, along with that exceeding the more…

AUD got a chance of consolidation

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock markets are still suffering heavy selling. Bulls are retreating not only because of the expectations of QE reduction from the Fed, but also because of the unimpressive corporate reports. Index futures have an opportunity for a respite only when the US trading session is over. It was yesterday and the same movement we can observe today. The euro/dollar keeps ignoring fluctuations of stock indices, which is not typical of this pair. Yesterday the currency made another attempt to find demand on growth. The attempt proved to be futile, the pair was turned around straight above 1.37 with the more…

Currencies and stocks are again apart

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro’s behaviour on Friday was really unnerving. Having summoned up all strength with the help of other currencies, bulls directed all efforts to sweep away bearish positions in the pair. For a couple of hours the pair was pushed from the daily low of 1.3660 up to 1.3738 and then was accurately put back to 1.3677. Forex hasn’t managed to go far from this level by now and trading is held at 1.3685. The calmness of the currency market is noteworthy as in the meantime stock exchanges suffered heavy selling. It is also true that earlier stocks felt good as more…

It’s all USD’s fault

By GG Analyst in Reviews 0 Comment

EUR/USD

The pair got support on the strong stats from Europe and relatively poor data from the USA. Yesterday’s PMI helped the single currency get off the lower bound of the range, forming since the beginning of the week. The index pointed out strengthening of business activity in the eurozone. And what’s important not only in Germany, but also in other countries. But afterwards dollar bears fastened on the continuing claims index, which has been on the rise for the last three weeks. Except for one week in July, distorted by the holidays, the last time unemployment claims exceeded 3.06 million was more…