FOMC hasn’t clarified the prospects

By GG Analyst in Reviews 0 Comment

EUR/USD

The US Federal Open Market Committee tried to avoid in its comments clear hints at the time when tapering would start. Yet, absence of evident concerns regarding the economy let bears gain the upper hand. Stock markets received a severe blow, which is now echoing in the Asian and European markets. S&P 500 shifted away from the global highs, losing more than a percent. Straight after the release EURUSD dropped by 85 pips, below 1.37, where it remains now by the beginning of the EU session. The Fed again expressed its desire to see stronger signs of economic growth before withdrawing more…

Correction to precede the Fed’s commentary

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock markets have halted their upsurge and Forex has recouped some of the dollar’s losses. Thus, EURUSD declined by 15pips to 1.3785 over the day, thus breaking the series of ascents. It is also remarkable that bears tried to break lower and hit a 5-day low at 1.3768 during the Asian session. The market cautiousness can be attributed to closeness of the FOMC’s meeting. It is to start today and tomorrow we will learn the decision. The market participants do not expect any changes, but are cautiously getting ready to hear the new commentary of the Fed. Some, including more…

CBs on standby

By GG Analyst in Reviews 0 Comment

EUR/USD

Having hit a new high, EURUSD has again stalled. Now the market is consolidating around 1.3800, a week ago it was 1.3650 and before that from September 19 till October 17 trading had been held at 1.3500. The same picture, though at a larger scale, was observed in the market during the superrally of 2005-2008. Then the market was pushed by the difference in the ECB’s and Fed’s policies. The former was extremely vigilant regarding inflation under the guidance of Jean-Claude Trichet. The latter had already fallen into the trap of a housing and commodity bubble, when on the one hand more…

USD is sinking because of risk demand

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we witnessed a splendid rally against the dollar. Let’s be honest, it was quite a surprising thing. EURUSD grew from the lows of Thursday (1.3470) by over two figures. The markets slowed down only near the yearly highs, at 1.3680. Now we see some consolidation, so the pair has managed to retrace by 20pips off yesterday’s highs. When ascending, stock markets managed to hit a fresh historic high at 1733 (for the December futures). Psychologically the optimism is understandable: the markets got the long-awaited relief and the debt ceiling increase, which is able to arouse demand for risky assets. But more…

Denying to the last

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s a funny thing: already today the debt ceiling negotiations should come to the end otherwise default will occur already tomorrow, but for all that the markets manage to see the positive in the news from Washington. They are merely denying the problem. From the psychological point of view, the markets are just at the first stage – denial – and they still have to go through anger, bargaining, depression and acceptance. Yet, the other stages will scarcely be favourable for stock indices and the US dollar. Now the most probable way out is seen in another compromise with the debt more…