EUR is under its 200-day MA due to new troubles at the periphery

By GG Analyst in Reviews 0 Comment

EUR/USD

Italy is trying to form a coalition government and this is a new problem for the euro. Yesterday the currency once again hit a fresh four-month low against the dollar on the news that the leader of the party which won last month’s elections, Bersani, promised to appoint Berlusconi as head of the committee for reforms. If you remember, the need for reforms was exactly the reason why Berlusconi had been forced to resign the post of the country’s prime-minister in 2011. This news and other statements about problems with creation of the coalition government caused much anxiety in the markets, more…

A very boring Tuesday

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday ended in nothing for the markets and especially for the euro. EURUSD remained close to 1.2850, where it was at the beginning of Tuesday. Partly it was due to a very scanty news background. Neither Cyprus nor other troubled periphery countries didn’t bring any bad news, but still the euro zone has nothing to be happy about. Similar balance is also observed in the USA. But as has already been mentioned, there it is at a much higher level. The only interesting news yesterday was the US Durable Goods Orders. Thanks to the transport sector the volume of durable goods more…

Cyprus as a model for further “bailouts”

By GG Analyst in Reviews 0 Comment

EUR/USD

The market optimism on the Cyprus deal was supported only by the hopes that that scenario would never happen again. And we warned from the very beginning that, quite the opposite, the bailout of this small island could serve as an example for the further bailouts (if they will be needed). We warned, but couldn’t even suppose that it would be avowed by one of the high-rank officials of the EU so soon. It was done yesterday by the Dutch Minister of Finance and President of the Eurogroup Jeroen Dijsselbloem. The euro-optimists once again were punished. EURUSD sank by more than more…

EUR took advantage of the verdict to the Cyprus banking future

By GG Analyst in Reviews 0 Comment

EUR/USD

After a week of markets’ and investors’ tortures, Cyprus has eventually found what it can sacrifice to prevent the uncontrolled swift crash of its financial system. Frankly speaking, Cypriots agreed to a slow and gradual dying of their banking sector. You see, in exchange of €10bln from the international creditors (the EU, the IMF, the ECB) Cyprus makes the second largest creditor of the country – Laiki- a “poor bank”, which in addition to its own debts will get toxic debts of the Bank of Cyprus. Deposits above 100K won’t suffer restructing and won’t be taxed. However, big investors may lose more…

EUR is waiting for destiny

By GG Analyst in Reviews 0 Comment

EUR/USD

At present we know only that Russians are not going to provide financial aid to Cyprus. Supposedly, the refusal has followed the unwillingness of Cypriots to sell their assets on the conditions favourable for Russia. Cypriots now hope for revision of the terms of the preceding loan and, less likely, for a new one from Russia. It’s clear that the banks won’t unblock the money till the next week, thus the banks remain in a half-frozen mode. Under such conditions the banks get liquidity from the ECB’s channels, and this clearly vexes the CB, which is calling to take a decision more…