A brief surge of optimism

By GG Analyst in Reviews 0 Comment

EUR/USD

A number of vital events have happened in the market since our last review. Firstly, Obama formally gained the upper hand in the fiscal policy issue. The fact that the agreement had been finally reached (now taxes for those who earn more than 450K will be raised) led to opening of the currency and stock markets with an upward gap. S&P 500 returned to October highs, but this is all the bulls could do at the time. Since then the market has been steadily trading sideways and even the employment stats couldn’t change the situation. In the currency market opening with more…

Festive trading: up and down

By GG Analyst in Reviews 0 Comment

EUR/USD

Already at the beginning of the week it was pretty clear that to Obama’s regret no agreement would be reached till Christmas. Frankly speaking, there’s little chance that it will happen in these few days until the New Year. However, the markets don’t seem to be worried about that. In fact, due to the continuous work of the Fed’s printing press and growing optimism regarding Europe’s fiscal crisis, Forex and other markets gladly react to positive news releases and unwillingly go down on negative ones. Against our expectations, the uncertainty around the fiscal cliff issue didn’t push the euro down on more…

Pre-holiday market speculation

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the US markets went through a one-minute drop by over 2% on the news that the House of Representatives wouldn’t vote for adopting a new fiscal policy. Republican leader Boehner, the speaker of the House, announced that since the bill didn’t have enough advocates, the vote would be postponed. Boehner’s “plan B” hasn’t worked. Now both the parties have to quickly come to a mutual agreement, otherwise the automatic spending cut and tax increase will deal a hard blow to the economy. The Forex market took the news calmer. The euro tried to get to 1.33 yesterday afternoon, but in more…

Nothing serious, just a pullback after the rally

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the markets finally pulled back. The continuous growth, lasting for almost 8 days, stumbled over a quite expected obstacle yesterday. On the way to consensus Obama and Boehner passed from mutual concessions to mutual threats. The president promised to veto the republicans’ plan for the budget and fiscal policy. We already warned that this was likely to happen. Common sense prompts that a compromise will be eventually reached, however the way to it won’t be smooth. Also most economists consider that for now it will all end with a temporary agreement, which will help to avert the fiscal cliff at more…

EUR – the strongest major at the moment

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets seem to be gripped by the holiday mood. The decrease in the number of market participants clears the way to stop-order levels. It’s especially typical of our digital era, when trading depends largely on the digital algorithms. At such moments like this the pair, leaving the established trading range, stumbles over an avalanche of stop orders, which boost the further motion etc. In our case, the single currency, cursed by everyone earlier this year, is now the best among the majors. For instance, against the dollar the euro has been appreciating for 8 days in a row and is more…