Bad news from the USA does good to the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

CBs are again playing giveaway. Draghi has repeated that the Bank is ready to help the EU economy before French Assemblée Nationale. He also specified that supporting of the economy by all the measures ,”which the ECB will see proper”, doesn’t contradict the price stability mandate. It’s interesting to see how the approach has changed – before Draghi the ECB refused to do anything that wasn’t in complete agreement with the mandate. In our opinion, the reason for that is in a better situation in Germany, which doesn’t suffer that strong growth which was a couple of years ago, with a more…

Consolidation after impressive moves

By GG Analyst in Reviews 0 Comment

EUR/USD

Stock markets continued to fall yesterday and managed to stabilize only in the second half of the US session. Bulls were too weak to perform a proper bounce, but the consolidation going on now is already positive in itself. Once again let’s note that Forex is very touchy with regard to new trends and changes in the old ones. So, yesterday’s fluctuations in EURUSD at the beginning of trade were relatively small. The daily low was set at 1.3057, but at the same time it is clearly seen  that the pair was supported on triggering large buy orders. As a result, more…

Close to free fall

By GG Analyst in Reviews 0 Comment

EUR/USD

USD is still on the offensive, with the active phases of its growth falling on the EU and US sessions. On Friday evening the euro was falling under its own weight, triggering a wave of stop-orders. As a result, on Friday instead of the traditional consolidation we saw the biggest drop over the week. This week started with a downward gap below 1.31.  If technical analysis is true, the descent will continue with the next probable stop at 1.3000/10. However, bears shouldn’t hurry with staking for decline as close to 1.3070 there is the 200-day MA, which can turn out to more…

Too big to grow

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex’s reaction to Bernanke’s commentary was the strongest, yet the market was the first to come to senses after the violent movement. Yesterday since the end of the US trading session and all through the Asian one the dollar index was retracing. Friday is expected to be quiet as no important news is scheduled for today. Among yesterday’s releases the German Flash Manufacturing PMI, which reflected the continuing weakening, deserves attention. Now the euro zone and Germany, a former locomotive, show roughly the same performance. Though, Germany’s Services PMI proved to exceed expectations, returning to the growth zone after two months more…

GBP’s streak of luck is over

By GG Analyst in Reviews 0 Comment

EUR/USD

Set free, that is outside the narrow trading range, the single currency entered the period of high volatility. At the end of Monday the pair soared to 1.3380, but already by the beginning of the EU session it had returned to the preceding levels. The reason for that was Draghi’s determination to apply non-traditional monetary policy measures, which he expressed at the conference in Israel. The pair plunged to 1.3325, but was supported by the bulls and managed to set new daily highs. It’s an interesting case. The ZEW Economic Sentiment came out slightly above expectations, but the pair was already more…