Will FOMC revise its plan to terminate QE in October?

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency keeps drifting near 1.2750, having no desire to fall and no strength to grow. The six-week decline of stock indices arouses more and more concern among the Fed’s officials. Though they don’t assert that this behaviour of the markets will make FOMC revise its plan to end QE in October, they still promise to consider it in the coming days. Rosengren, President of the Federal Reserve Bank of Boston, said that QE will be finished in October if nothing dramatic occurs. So now market participants are trying to make out how dramatic the recent sale, which lasted for 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…

Bears win back 200-day MA in EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

Thursday’s stats on US employment contributed to strengthening of the US dollar. Yet, growth of the latter is least conspicuous against the pound, but against the euro and the yen the US currency has appreciated well enough. The dollar bulls want to depict the recent surrender of the 200-day MAs in EURUSD and USDJPY as an occasional and short-term trip beyond the key levels. The main reason for this movement is perfect employment statistics. The employment has grown by 288K, in the private sector its increase has been also good – by 262K. As a result, the average semiannual growth totals more…

USD’s depreciation, as usual

By GG Analyst in Reviews 0 Comment

EUR/USD

The positive performance in the stock exchanges contributes to the dollar’s retreat. On Friday the euro/dollar made a successful attempt to reach 1.3650. Thus, the uptrend, formed in the last three weeks, still holds. The risk demand, observed in the stock exchanges, supports the single currency. It is remarkable that in the stock exchanges we see positive performance, which is treated as an inclination to disregard weakness of the GDP stats for the first quarter. Here the markets are supported by Bullard, St. Louis Federal Reserve President. He supposes that already before the end of the year the economy will grow more…

Tapering may start already before the year end

By GG Analyst in Reviews 0 Comment

EUR/USD

Well, after all Obama has nominated Janet Yellen to head Federal Reserve. This news is not surprising as already for several weeks Yellen has been considered to be the most probable candidate for the post. The markets’ attention was riveted on a different event – the publication of FOMC’s September meeting minutes. As you remember, then the size of the bond-buying programme was kept unchanged despite the warnings about readiness for gradual stimulus rollback. The minutes point out that the Committee sees the need for this measure already before the end of the year. So, it’s all small wonder. Bernanke’s caution more…