The ECB and BOE emphasize differences of their and the Fed’s policies

By GG Analyst in Reviews 0 Comment

EUR/USD

The European CB and a bit earlier the Bank of England contributed to decline of their domestic currencies by 0.9 and 1.3%, respectively. The differences in the economic situations of these countries made the heads of these CBs accentuate the differences of their policy and that of the USA, which is about to negotiate the stimulus rollback. Thus, at yesterday’s press-conference Draghi put a special stress on the phrase that “the key ECB interest rates would remain at present or lower levels for an extended period of time”. Just two press-conferences ago he said that the Bank “never pre-commited”. It was more…

USA: good, but could be better

By GG Analyst in Reviews 0 Comment

EUR/USD

The upward revision of Manufacturing PMI in the European countries, which happened on Monday, raised the expectations connected with the services sector. For this reason, the disappointment with the downward revision for Germany and the euro zone in general was particularly strong. The Spanish and Italian Services PMIs (there were no preliminary data for these countries) didn’t surprise either. The Italian indicator (45.8 in June) has been declining for two months in a row, pointing at a speedier recession in the sector, and the recession itself (figures < 50) has been lasting already for two years. In Spain the situation is more…

Dollar bulls attack key levels

By GG Analyst in Reviews 0 Comment

EUR/USD

Turning back to Monday’s opposition of technical and fundamental signals, we can see that the former is winning (at least now). The US dollar continues the attack. EURUSD again dipped below 1.30 yesterday. Now it is trading at 1.2970, which is close to the lows of early June. The bears showed an impressive performance yesterday near the 200-day MA (1.3070). This was provoked by an article in Reuters, which said that the troika was again displeased with Greece’s progress on the way to budget consolidation and that the country got an ultimatum within three days to agree to the afore-discussed terms more…

The EU periphery livens up

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday was marked with the release of manufacturing statistics. For the most part, the data were quite optimistic. With regard to Europe, the encouraging news was growth of Spanish and Italian Manufacturing PMIs in June. More so, the former totaled 50, which is the highest level since April 2011 and indicates that last month manufacture was not declining. For the last three months this country’s index has grown pretty much, which is also true for Italy. Yet the Italian manufacture is still in recession, but the level of 49.1 is the highest since July 2011. The periphery can boast of their more…

The Fed tries to adjust market expectations

By GG Analyst in Reviews 0 Comment

EUR/USD

FOMC’s officials claim now that the markets misinterpreted Bernanke’s words at the press-conference a week ago. Yesterday Lockhart (doesn’t vote this year) said that market participants misunderstood the intention of the Fed’s head and that he would be watching closely the negative consequences for the debt market. Besides, William Dudley noted that the market reaction goes counter to the Fed’s statements and expectations of the majority of FOMC’s members.  Powell spoke in much the same vein. The massive pressure from these four officials eventually has produced its effect. Government bond yields have slightly decreased in comparison with the trend observed for more…