“Hope” rally goes on

By GG Analyst in Reviews 0 Comment

EUR/USD

As reported in many news feeds, the US markets were growing all day long yesterday on speculations that democrats and republicans were seeking a compromise. The reasons for the market optimism were just the same as at the time of our previous release. So, there should be some other reasons for the growth, most likely, low trade volumes. The players are leaving the market, thus allowing speculators to easily move the prices. For comparison, optimism in the stock markets didn’t help the euro grow against the dollar. Yesterday the pair was trading all the time in the narrow channel of 1.3145 more…

Are the expectations too high?

By GG Analyst in Reviews 0 Comment

EUR/USD

The slight concession from Boehner inspired the currency markets on Friday. EURUSD was soaring up during the US session and grew on triggering stop orders this morning. The latest maximum hit by the pair is 1.3187. Yet since then the euro has slightly rolled back on the retracement of Asian markets and is now trading close to 1.3150. Possibly, the bulls’ efforts were not vain -the pair rose to its 7-month highs, which opens the way up to 1.3280, the starting level of the May sale. Despite the general optimism, Boehner’s concession is just the first step on a long road. more…

Is the Christmas Forex-rally about to start?

By GG Analyst in Reviews 0 Comment

EUR/USD

Don’t be surprised at yesterday’s retracement of the markets. It doesn’t really mean that the further upward move is not possible and that the market is disappointed because Bernanke has proved to be tougher than needed. Yesterday’s move down as well as selling late on Wednesday has just marked taking of profits and rebalancing of positions before the Christmas rally. Yes, we believe that it hasn’t started yet, since the level of 1.3140 hasn’t been passed. The bears have pushed the pair off this level frequently this year. But this time there’s a good chance that the level will be passed more…

Fed eases the policy and raises transparency

By GG Analyst in Reviews 0 Comment

EUR/USD

The crisis is not the best thing to be joyed at, but now it is the very factor which raises the transparency of banks. Important: the Fed WILL extend the asset purchase programme. So, now the current purchases of the mortgage-backed securities to the Fed’s balance sheet (40bln/month) will be joined by purchases of US Treasuries (45bln/month). Operation Twist expires this year. The most unusual and surprising thing here is that the Fed has decided to set the parameters, which would serve as signals for consideration of a tougher monetary policy. Thus, for the Committee to start thinking about a more more…

Optimism up – USD down

By GG Analyst in Reviews 0 Comment

EUR/USD

The market lingered for a while, but eventually came to the conclusion that we described in our previous review. The Fed is expected to extend QE in order to reduce the pernicious effect of the Operation Twist expiry at the end of the year and avert the possible negative consequences of the fiscal cliff.  Actually, the US congressmen are lucky to have this kind “Helicopter Ben”, who is always ready to come to the rescue and ease the pain from their own irresolution and failures. For comparison, the ECB’s head, Mario Draghi, agrees to support the financial markets of particular countries more…