Bears keep putting pressure

By GG Analyst in Reviews 0 Comment

EUR/USD

Wall Street didn’t manage to recover fully after Thursday’s sellout. During the US session selling was still heavy as investors couldn’t find any support in the fresh corporate reports. The disappointment with the indicators of technology companies spread to other sectors as well. Actually, the reports fall short of the investors’ high expectations, which picture them strong enough to justify the overrated stocks and fight the negative consequences of the Fed’s policy toughening. Already now the bonds are increasing their yields, which makes them a bit more attractive, depriving the stock market of the growth potential. The single currency seems to more…

EUR redeemed its positions

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency regained its positions after Draghi’s speech last Thursday. Yet, it is not only the merit of the EU officials, who have been saying since the beginning of the week that QE and other ways to ease the monetary policy are merely treated as possible options for the future, rather than as a predetermined scenario, which is simply not highlighted yet. The dollar is pressurized also due to the soft rhetoric of the Fed’s members, who intend to raise the rate when the economy is more ready and who also consider the current policy not transparent enough for the more…

Futile volatility

By GG Analyst in Reviews 0 Comment

EUR/USD

The unemployment statistics proved to be relatively good, but since for the most part they met the expectations, the market didn’t see any significant volatility. The US employers increased the number of jobs by 192K in March against the consensus forecast of 199K. Against expectations, the unemployment rate remained unchanged at 6.7%, but this is not bad news as the participation rate grew from 63.0% to 63.2%. Average weekly hours grew more than expected, from 34.3 to 34.5 hr. The current rate already corresponds to the average pre-crisis rates, so we can already speak about returning to the normal workweek schedule more…

Draghi did the right thing

By GG Analyst in Reviews 0 Comment

EUR/USD

Fortunately we were mistaken about Draghi yesterday. His comments on the rate decision and answers to journalists’ questions made it clear that the ECB is ready for action. As opposed to the press-conference in March, Draghi didn’t sound optimistic. On the contrary he pointed out that the inflation slowdown proved to be an unpleasant surprise for the Committee and said that deflation or even a long period of low inflation is a very dangerous thing, which the Bank is going to combat. He added that various unconventional measures  (expansion of the ECB’s balance sheet via asset purchases, rate cuts and even more…

Analysts against traders

By GG Analyst in Reviews 0 Comment

EUR/USD

More often it’s quite the opposite, but yesterday analysts gained the upper hand over traders. A couple of minutes before the release of the EU inflation statistics, the pair came under severe pressure. It tumbled down by 15 pips to 1.3745. Then it was reported about sharper inflation slowdown than expected and the euro/dollar dropped already to 1.3720. However, the impulsive reaction of traders (or were these robo traders, working on news?) to the weaker-than-expected data held just for a moment. Further the single currency got some support on the analysts’ comments that the slowdown from 0.7% y/y to 0.5% y/y more…