A respite after the slaughter

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency which was one of the most stable currencies since the beginning of the year, was falling against a great number of markets yesterday. It’s not all about increase in demand for safe assets and the dollar, which followed the Fed’s meeting minutes. The euro is influenced by inner factors. Yesterday’s preliminary stats on the February PMI failed to meet the expectations. The Services PMI declined from 55.7 to 54.1 against the forecasted decrease to 55.5. The Manufacturing PMI seems to have resumed growing (now the index is at 50.1 whereas 50.0 would have shown retention of the rate more…

Stock market optimism is in Forex’s favour

By GG Analyst in Reviews 0 Comment

EUR/USD

One of the clearest signs of optimism in business is increase in M&A deals. The companies, which have access to relatively cheap loans and which preferred not to invest when the situation was pretty much uncertain, now feel that the world is changing. It seems that they started to open their sacks with cash more and more eagerly. Of course, we are talking about strong companies as the crisis has left either winners or firms with good brands but less favourable access to money. The latter are being hunted with enthusiasm now. News about increase in activity of this kind gives more…

Again at the crossroads

By GG Analyst in Reviews 0 Comment

EUR/USD

Monday didn’t abound in news, so EURUSD closed the day just where it started it, i.e. remained at 1.3350. The movements during the day were petty and of speculative nature and therefore can be ignored. The only stats deserving attention yesterday were those on the EU current account, which in December shrank a bit more than expected to 13.9bln against 15.9 a month before and the forecasted decline to 15.3. Anyway, with a broader view of things last year seems to have been quite favourable regarding the euro zone international trade. It was largely due to depreciation of the single currency more…

G20 didn’t dare to name the shame

By GG Analyst in Reviews 0 Comment

EUR/USD

G20 is a dog that barks and doesn’t bite. The joint statement pointed out that the countries would abstain from competitive devaluation of their domestic currencies. Anyway, the states do have some space for maneuver since they are not forbidden to carry out quantitative easing and increase expenditures to support growth of their domestic economies. Actually, that is what all were after when expanding their currency reserves. Thus, the fears that Japan’s politicians would be shaken a finger at and that the Fed would be more cautious proved to be groundless. All this is a good stimulus to ease tension in more…

Take your profits and watch from the sidelines

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency had quite a hard day Yesterday. While the daily open was at 1.3450, the daily low was reported a bit above 1.33. It was largely due to the poor stats on the EU economy. In the fourth quarter the region’s economy shrank by 0.6%. The same slowdown was experienced by Germany. The French economy shed 0.3%, but it was growing very slowly last year and, as a result, the yearly decline made 0.3%. Italy’s economy lost 0.9% and the yearly rate made huge – 2.7%. Portugal stroke the ground: -1.8% in 4Q after the decline by 0.9% in more…