Nothing will ever stop the dollar

EUR/USD

EUR keeps waging an attack as if it made up for the unimpressive beginning of the year. Then the dollar was expected to show almost immediate growth, believing that QE tapering was a good reason for the currency’s appreciation. However, as seen, this reason is posed by the prospect of the rate increase. It’s of interest that market participants often ran ahead of time then, expecting earlier toughening of the policy, though already in a few months there was nothing else to do but suppose further incentives. Now the situation seems to have changed radically. According to the Fed’s research, the more…

EUR is crushed by the ECB

EUR/USD

The heaven tumbled down for the single currency yesterday. The sudden decline of the core interest rate and other accompanying rates by 10bp forced EURUSD to fall down from the daily open of 1.3150 to 1.2940 by the end of the day. The pair was last seen that low more than a year ago. Then, in 2013, it found support near 1.2750, which leaves much space for maneuver regarding further decline. Though on the other hand EURUSD is so oversold that to stimulate depreciation today the US employment statistics should be unbelievably good. It is expected that the US employment will more…

USD launches a flank attack

EUR/USD

The single currency hit a fresh local low, falling down to 1.3108, but bears were not strong enough to test 1.31. We should say that despite the expected beginning of the ECB’s QE on Thursday, the single currency is depreciating against the dollar much less than its rivals like the pound, yen and the Aussie (read below). Today the main risk for the pair is posed by the Final Services PMI. If this index has been considerably revised in comparison with the preliminary data, it may affect the course of trading. Unfortunately for the euro, now there are plenty of downward more…

A threat to correction against USD

EUR/USD

Once again the single currency suffered pressure  in the morning. The low set at 1.3118 yesterday during the Asian session held for about a day. At the time of this writing the local low in the pair is 1.3111. The decline is accounted for by the expectations of the QE by the ECB this week. At least, by the expectations that clear parameters, size and the commencement date will be announced. It should be mentioned that these are very feeble expectations. So if they are not met, we may face a serious movement in the opposite direction. Lots of players staked more…

EUR got close to 1.31

EUR/USD

This week the EU is planning to discuss a new stage of sanctions against Russia regarding help the latter delivers to the Ukrainian separatists. Their success has been producing a negative effect on the situation in the markets lately and, as a result,  has put pressure on the single currency. Another round of sanctions will hamper the economic potential of Europe even more. EURUSD has reached 1.3112 this morning in view of the growing geopolitical risks. Also, the euro is affected by hints of Mario Draghi, made a week ago in Jackson Hole. After his speech now the markets expect further more…