Geopolitics puts pressure on Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

The portfolio rebalancing and demand for the EU currencies were interrupted yesterday by Kiev’s accusations that Russia had active forces in Ukraine and helped the separatists. The UN believes that over 1000 of soldiers can be located on the territory of the neighbouring state. Such accusations imply further aggravation of the conflict. The stocks of the Russian corporations  and the ruble lost about 2 % yesterday afternoon, affecting the EU indices and currencies. Thus, EURUSD went on the defensive off the intraday high of 1.3220 and closed the day at 1.3180. Thursday’s low makes 1.3158 and it is less than 10 more…

US statistics pose a threat to USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock market managed to hit a fresh global high, but the trading range was rather narrow, which spoke about moderate trading volumes. At the time when the market reaches new round levels it gets flooded by retail investors, while corporate investors start lock in their profits. We tend to think that the latter are much stronger, so at the end of the month and before the beginning of the new financial year we expect portfolio rebalancing of various funds and financial companies. And it means that the trends which formerly dominated the markets will be corrected. EURUSD may gain more…

EUR is kept off the levels above 1.32

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency didn’t manage to recover yesterday. EURUSD was below 1.32 almost all day long yesterday, though the major rivals of the single currency felt much better. Besides, S&P 500 crossed the level of 2000, which was a significant moment for the markets. The index didn’t move far from this level and went on the defensive right after hitting the level. As we mentioned yesterday, the initial weakness of the euro was maintained by the divergence between the US and EU monetary policies, once again emphasized by the comments of the Fed’s and ECB’s governors in Jackson Hole. But further more…

Speculators seek to sell USD prior to Yellen’s speech

By GG Analyst in Reviews 0 Comment

EUR/USD

Speeches of Janet Yellen, Federal Reserve Chairwoman, are often full of cautious comments and are generally treated by the markets as rather dovish. Being just a certified candidate for chair of the Fed, she already maintained a softer stance than Ben Bernanke, so the markets even staked that her advent would help to stop QE reduction. This year she has aroused a fresh tide of anxiety regarding the policy toughening when pointing out that unemployment below 6.5% wouldn’t be a reason to consider raising the rates. Instead the Fed  began to focus on a wide range of employment indicators. Thus, Janet more…

Germany can’t save everyone

By GG Analyst in Reviews 0 Comment

EUR/USD

Italy is again suffering recession. It became obvious after yesterday’s release of the Prelim PMI data for the second quarter. The statistics indicated the economic slowdown by 0.2% in 2Q after the decline by 0.1% in 1Q. Actually, over the last three years Italy reported only one quarter of growth – the last quarter of 2013. All the rest of the time the economy was suffering sluggish weakening. Even some decrease in the unemployment rate since the beginning of the year doesn’t save the situation. 12.3% is still too high to rely on the growth of consumer activity. Even the foreign more…