The bears attack

By GG Analyst in Reviews 0 Comment

EUR/USD

Triggering of stop-orders in EURUSD drove the pair to 1.3519 yesterday, but at these levels sellers entered the game. As a result, the daily close was slightly negative, 1.3450, but now we can observe some growth in the dollar, which pushed the rates even lower, to 1.34. In the charts we see that yesterday’s reversal is absolutely identical to the situation on February 7. The same downward wave took the pair from 1.357 down to 1.335. If this time the decline is of the same scale, we may see EURUSD somewhere between 1.3250 and 1.3270. Yesterday’s upsurge of the single currency more…

G7 provokes profit-squeeze in the recent trends

By GG Analyst in Reviews 0 Comment

EUR/USD

The biggest news yesterday was the joint statement made by the finance ministers and CB heads of G7 member-countries. The leaders managed to “push” into one abstract of the text not only justification for their measures to weaken the domestic currencies, but also the hope that all the countries of this mighty handful will keep a low profile. The analysts quickly commented that they were very much upset by such reserved statements and no open call for action. It’s hard to say what the markets were expecting then as all the previous comments of G7 andG20 were of the same kind. more…

EUR and GBP struggle further, AUD and JPY capitulate.

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro resists dollar’s pressure. The US currency was appreciating against many assets and asset classes yesterday, but the euro managed to win the day. The euro-bulls can hardly celebrate the victory, but anyway we should admit that EURUSD was purchased well at the daily lows (1.3355) and even demonstrated a series of ascending intraday highs and lows. As a result, the bulls managed to bring the pair up to 1.3426. Last night the pair was again pushed below 1.34, which means that the bears still keep control of the situation. On the whole the market has been balancing in a more…

EUR looks exhausted

By GG Analyst in Reviews 0 Comment

EUR/USD

The end of the last week can hardly be called lucky for the euro.  EURUSD slipped down from 1.3575 to 1.3370 on Thursday and continued drifting on Friday, falling as low as 1.3350. Friday’s decline of the euro against the dollar doesn’t look very impressive, but the currency’s weakness in other key crosses is striking. The single currency depreciated much against the pound, the yen and even against the franc. Thus, we get another proof of our opinion that the period of the euro’s strength and growth of EURUSD is over. The currency has rowed up the stream for a while, more…

Draghi is not satisfied with the more expensive euro

By GG Analyst in Reviews 0 Comment

EUR/USD

Mr Draghi met our expectations. Not that he spoke openly about depreciation of the euro or threatened with quantitative easing to weaken the euro, but still he pointed out that the increase in the euro, though reflecting that the eurozone is again trusted, may hamper the recovery. In our opinion, the markets were especially sensitive to the phrase that quick growth of the euro may impair price stability. And this implies that the CB will be ready to act should the euro keep growing. At the moment investors are puzzled which of the CBs is the least tolerant to the high more…