Disbalance through the Fed’s fault

By GG Analyst in Reviews 0 Comment

DXY

The euro remains in the uptrend, forming a chain of ascending highs. It is a good sign. It is also good that EURUSD feels more and more confident above 1.32. Yesterday the intraday high was set at 1.3238. Actually, we can’t say that the current growth of the pair is as speedy as the preceding decline. That drop was caused by the market expectations of QE-3 reduction in the near future. Meanwhile, the current growth results from the revision of these expectations. The same hypothesis is proved by the US debt market. There last month’s upsurge of yields has been almost more…

EUR and GBP to test important resistances

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar remains in the uptrend. Last week the level of resistance moved from 1.3000 to 1.3050. And the resistance of bears is only at 1.3170 now. Technically,  a “flag” is forming. And usually it spills over into continuation of a trend. In our case, should 1.3170 be broken through with confidence, traders will get a buy signal with the approximate target at 1.3570, which is our long-term target. Talks about further growth will be sensible only after these levels are reached. Yet the ability of the single currency to stand firm above 1,36 seems to be more and more doubtful more…

These mysterious central bankers

By GG Analyst in Reviews 0 Comment

EUR/USD

Greenspan once said: “I guess I should warn you, if I turn out to be particularly clear, you’ve probably misunderstood what I said”. Despite all strenuous efforts of modern central bankers to develop targeting and establish communication with the markets, the results are still very similar to those at the time of Greenspan. Last month the markets reacted as though the Fed’s head had made a U-turn in his policy during the last three conferences. His yesterday’s comments to the Congress supported the single currency for a while as they said about the Fed’s flexibility in using macroeconomic indicators in the more…

Waiting for Bernanke with bated breath

By GG Analyst in Reviews 0 Comment

EUR/USD

The market has again come to a standstill and to be on the safe side locked in profits after 8 days of growth. Today Bernanke gives another speech and expectations of this event are given extensive coverage in the press. First of all, it is caused by broad market movements in the opposite directions after the previous two speeches (the press-conference after the FOMC’s decision and the speech given in Cambridge on the occasion of the Fed’s centenary). But that is not all – it turned out that Bernanke’s speeches to the lawmakers usually provoke stronger fluctuations in the market than more…

RBA hints that AUD is low enough

By GG Analyst in Reviews 0 Comment

EUR/USD

EUR/USD is trying to break above the channel, where it has been consolidating in the recent days. Now the bulls are striving to reach 1.31. But it seems that the fate of these attempts will be decided by the German ZEW. If it goes far beyond the forecasted rates, the scales will be tipped in favour of the euro. Yet, it should be mentioned that already now this indicator is at quite favourable levels. In the evening the markets can be also affected by the US inflation statistics, but these data have been pushed to the sidelines,  since the Fed relies more…