Cuts won’t hurt

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is in demand now,  yet remains at 1.3050, the low hit early this year . At this level the pair was trading in the first days of January  and returned there at the beginning of the week on disappointing results of the Italian elections. As has already been mentioned, the pair is more likely to grow than fall in the long run, however in the near term it is still possible that 1.30 will be tested. Apparently, it is an important stage in the struggle between bears and bulls, which will determine the further fate of the pair. more…

Buy it if you dare

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke spoke again to the Congress and for the second time confirmed his adherence to the bond-buying policy. Traders have caught at the phrase that the size of asset purchases can grow as well as decline. The markets , which see only what they want to see, got ablaze with the hope for the possible increase in the programme, should fresh signs of economic slowdown appear. Here we should also note that Bernanke and his team intend to rev up if the GDP growth rate goes below the trend one. Yet Germany insists on  stopping bond purchases immediately after the situation more…

Bernanke knows how to support the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke said everything that was necessary to inspire confidence in the markets. At times it is very difficult to understand whether he got into the markets’ trap ( as just a day before he delivered his speech the markets had suffered the sharpest decline in the last few months) or really remains ultra-dovish, though his policy is somewhat warped in some markets. So, Ben Bernanke, delivering a semiannual testimony before the Senate Banking Committee, pointed out the necessity to preserve the stimulating course of the monetary policy. It dispelled the fears which arose after the FOMC’s meeting minutes in January. The more…

Italy pushed down the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

Last night we learnt the preliminary results of elections in Italy. According to these data, there’s no clear winner who would form the government on his own. As is often the case in the complicated economic situation, populism is what electors, exhausted by economic slowdown and austerity,  particularly favour. Concerns that the government can be formed by the anti-European coalition oppressed the markets yesterday evening. The euro quickly lost all its polish, depreciating against most of its counterparts. The systematic selling took EURUSD from the intraday high of 1.3318 to the daily low of 1.3047. Last week we mentioned it many more…

Here comes the old trend

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency feels quite well at the beginning of the week. With the yen and pound being sold, the euro remains the single alternative to the dollar. Again the euro is purchased when the US dollar is quite strong. The major risk for the single currency is posed by elections of the top leadership in the southern countries. The first results of the parliamentary elections in Italy will come today after all polling stations are closed at 2 pm (GMT). Different surveys offer different outcomes:  some speak about the narrow win of Pierluigi Bersani’s democratic party, others think that the more…