Denying to the last

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s a funny thing: already today the debt ceiling negotiations should come to the end otherwise default will occur already tomorrow, but for all that the markets manage to see the positive in the news from Washington. They are merely denying the problem. From the psychological point of view, the markets are just at the first stage – denial – and they still have to go through anger, bargaining, depression and acceptance. Yet, the other stages will scarcely be favourable for stock indices and the US dollar. Now the most probable way out is seen in another compromise with the debt more…

Politicians may reach an agreement on Tuesday

By GG Analyst in Reviews 0 Comment

EUR/USD

Just yesterday we pointed out that decline of stock exchanges was caused by lack of interest in the dollar, but already today we see quite a different picture, though at the limited scale. The senators’ hint at the possible conclusion of the fiscal deal on Tuesday made stock exchanges grow – the S&P 500 futures exceeded 1700 pips – yet the single currency was falling only during the US session, when indices were growing intensely. Later, when the general positive mood spread to other markets, EURUSD set off in the upward direction. Now trading is held at 1.3570, which 20 pips more…

Tapering may start already before the year end

By GG Analyst in Reviews 0 Comment

EUR/USD

Well, after all Obama has nominated Janet Yellen to head Federal Reserve. This news is not surprising as already for several weeks Yellen has been considered to be the most probable candidate for the post. The markets’ attention was riveted on a different event – the publication of FOMC’s September meeting minutes. As you remember, then the size of the bond-buying programme was kept unchanged despite the warnings about readiness for gradual stimulus rollback. The minutes point out that the Committee sees the need for this measure already before the end of the year. So, it’s all small wonder. Bernanke’s caution more…

Important levels

By GG Analyst in Reviews 0 Comment

EUR/USD

Passions are rising. Stock markets displayed their inner nervousness, flinging down out of the slack downtrend. At the end of the US session the stock exchanges showed a decrease by about 1.5% from the intraday highs. Investors regained self-possession already during the Asian session, when the quotes stabilized. As has been often the case recently, the currency market behaves in a different way. The bulls tried to swing EURUSD, which was seen in two attempts to grow to 1.36 late on Tuesday and early on Wednesday. The bulls obviously sought to launch a counterattack to take the pair farther away from more…

Every which way

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s not easy to characterize the market reaction when there are neither economic nor news releases. Monday was one of such days. Anyway, there were some things happening under the surface. Risk aversion at the end of trading in the USA provoked falling of stock indices down to the lows since the beginning of September. It is remarkable that the correlation between stock indices and currency markets has completely disappeared. EURUSD is living its own life – yesterday it hit the low of 1.3542, but soon returned to 1.3570 and was trading there for the most part of the day. Those more…