USA: good, but could be better

By GG Analyst in Reviews 0 Comment

EUR/USD

The upward revision of Manufacturing PMI in the European countries, which happened on Monday, raised the expectations connected with the services sector. For this reason, the disappointment with the downward revision for Germany and the euro zone in general was particularly strong. The Spanish and Italian Services PMIs (there were no preliminary data for these countries) didn’t surprise either. The Italian indicator (45.8 in June) has been declining for two months in a row, pointing at a speedier recession in the sector, and the recession itself (figures < 50) has been lasting already for two years. In Spain the situation is more…

The Fed tries to adjust market expectations

By GG Analyst in Reviews 0 Comment

EUR/USD

FOMC’s officials claim now that the markets misinterpreted Bernanke’s words at the press-conference a week ago. Yesterday Lockhart (doesn’t vote this year) said that market participants misunderstood the intention of the Fed’s head and that he would be watching closely the negative consequences for the debt market. Besides, William Dudley noted that the market reaction goes counter to the Fed’s statements and expectations of the majority of FOMC’s members.  Powell spoke in much the same vein. The massive pressure from these four officials eventually has produced its effect. Government bond yields have slightly decreased in comparison with the trend observed for more…

Bad news from the USA does good to the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

CBs are again playing giveaway. Draghi has repeated that the Bank is ready to help the EU economy before French Assemblée Nationale. He also specified that supporting of the economy by all the measures ,”which the ECB will see proper”, doesn’t contradict the price stability mandate. It’s interesting to see how the approach has changed – before Draghi the ECB refused to do anything that wasn’t in complete agreement with the mandate. In our opinion, the reason for that is in a better situation in Germany, which doesn’t suffer that strong growth which was a couple of years ago, with a more…

The USA is on its own

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro is being gradually sold. At the same time stock markets are not the best benchmark as the main cause of the pressure on the single currency consists in the renewed fears for the sovereign debt crisis. Peripheral bond yields are again on the rise due to the increasing problems in the banking sector, which is under the threat of toughening of capital adequacy rules. Yesterday’s comments of Draghi, who said that the ECB was far from completing the cycle of the soft monetary policy. It was quite a logical statement for the head of the CB of the region more…

Consolidation after impressive moves

By GG Analyst in Reviews 0 Comment

EUR/USD

Stock markets continued to fall yesterday and managed to stabilize only in the second half of the US session. Bulls were too weak to perform a proper bounce, but the consolidation going on now is already positive in itself. Once again let’s note that Forex is very touchy with regard to new trends and changes in the old ones. So, yesterday’s fluctuations in EURUSD at the beginning of trade were relatively small. The daily low was set at 1.3057, but at the same time it is clearly seen  that the pair was supported on triggering large buy orders. As a result, more…