Weak Oil again supports USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the euro was under pressure due to another tide of demand for the dollar. The US currency again enjoys popularity in view of growing concerns about the oil price wars, unleashed by Saudi Arabia. The main player of OPEC agreed to lower the release price of oil for China, which entailed higher pressure on the global oil rates. For the most part, this policy of Arabia comes from the intention to preserve its share in the market and keep the USA out of the shale oil business. It is supposed that if this business  remains on the edge of profitability, more…

FOMC fears growth of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed’s minutes showed that FOMC is in a more peaceful mood than expected. As seen from the comments, published yesterday closer to the end of the US session, the Committee feared that changes in the comments would be taken in the wrong way by the market. As you remember, in September many expected that FOMC wouldn’t mention that the rates would stay low for ‘a considerable time’ any more. The forecasts contain fears that the slowdown of the global growth can affect the closeness of the US monetary policy tightening as slower growth results in the increased demand for the more…

A quiet day for USD

By GG Analyst in Reviews 0 Comment

EUR/USD

USD gave all Friday’s gains back to the single currency. Against other currencies it felt a bit more confident, staying positive. The main reason for that, in our opinion, is strong positioning for growth of the US currency. The rows of its buyers are too dense, so simply there can be no more volunteers to buy again. This very lack of heavy buyers serves as driving force for the currencies, otherwise the movement would be opposite. We mentioned it before and expected that it would happen on the ECB’s rate decision or on the employment statistics. However, it didn’t happen and more…

The payrolls shook 1.25 in EURUSD and pushed GBPUSD below 1.60

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency tested 1.2500 on Friday. This decline was caused by the perfect US employment statistics. The unemployment rate decreased from 6.1% to 5.9% and the number of jobs grew by 248K instead of the expected 210. Besides, the August statistics were revised up from 142 to 180. The average weekly hours has also slightly increased (from 34.5 to 34.6). But in the meantime, the average hourly earnings lost 1%, which in a way contradicts the classic situation with the tight employment market. It’s also no good that the participation rate has again fallen. In September it made 62.7 against more…

Attempts to put pressure on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro had managed to recover by the end of the day and close Monday positive. During the day EURUSD went as high as 1.2714, but closer to its end the pair was pushed below 1.2700. The data on the US consumer spending surpassed expectations, showing that personal spending grew by 0.5% after going down by 0.1% a month before. The data went beyond expectations and indicated revival of demand, which can urge the Fed to initiate tightening, or in other words normalization of the monetary policy. Besides, the consumer and business confidence of the eurozone keep sliding down. Against such more…