Forex roller coaster

By GG Analyst in Reviews 0 Comment

EUR/USD

USD’s reaction to the domestic news is now somewhat nervous. And yesterday it could be observed with pretty clearness.  Due to low activity during the EU session, all attention of traders was focused on the US inflation and also on weekly unemployment claims. The key inflation indexes met the expectations, having grown by 0.2% monthly and by 2.0% yearly. Such inflation rates are very neutral, which frees the Fed’s hands and allows to concentrate on other indicators. The latter includes employment. Yesterday this indicator demonstrated decline of unemployment claims down to 320K, which is the lowest level for the last 6 more…

JPY and CHF are fading against demand for risk

By GG Analyst in Reviews 0 Comment

EUR/USD

Tuesday was an eloquent reminder of the fight, that is now going on between the dollar-bears and bulls. Yesterday the victory was gained by the former. At the end of the day EURUSD was trading around 1.3260, that is 40 pips below the daily open, and a few hours before that, at the beginning of trading in New York, the pair had managed to go as low as 1.3230. Looking back at the Asian and European sessions, we see that already then the pair couldn’t get a grip on the levels above 1.3310. A few attacks were repulsed, so even the more…

Payrolls to confirm Bernanke’s words

By GG Analyst in Reviews 0 Comment

EUR/USD

Last week was probably the period of change for the dollar. The American currency has been moving down already since the beginning of July, when Bernanke gave a speech, disproving the expectations of the stimulus rollback in the near future. Last week we saw something different. Bernanke’s assurances were finally heard and accepted due to relatively poor employment statistics. According to the released data, in July the market added 162K of jobs – this is the smallest rate since March. However, the weak March was preceded by the abnormally strong February with its growth of 332K. Don’t be taken in by more…

Changes for the better

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex trading on Thursday was very nervous. The difference between the intraday top and bottom made 130 pips. It’s noteworthy that the rally towards 1.3300 was supported by quite positive statistics from Europe, but the main movement took place in the US session and was spurred by shifts in the US debt market. The latter is heading for higher yield. The minimal 10-year treasury yield of 1.39% about a year ago is now quite far from the current rates, showing the yield of 2.57%. Don’t be surprised if soon last month’s high of 2.76% is broken through and a fresh high more…

Disbalance through the Fed’s fault

By GG Analyst in Reviews 0 Comment

DXY

The euro remains in the uptrend, forming a chain of ascending highs. It is a good sign. It is also good that EURUSD feels more and more confident above 1.32. Yesterday the intraday high was set at 1.3238. Actually, we can’t say that the current growth of the pair is as speedy as the preceding decline. That drop was caused by the market expectations of QE-3 reduction in the near future. Meanwhile, the current growth results from the revision of these expectations. The same hypothesis is proved by the US debt market. There last month’s upsurge of yields has been almost more…