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…

Get ready to troubles in the eurozone

By GG Analyst in Reviews 0 Comment

EUR/USD

A day after the Fed had announced about its idleness the markets corrected just a little bit. For example, EURUSD didn’t even go below 1.35. Taking into account that a week ago it was below 1.33 and two weeks ago – around 1.31, it is quite a considerable progress. From the viewpoint of technical analysis, purchases became more intense after the pair had managed to consolidate above the 200-day MA on one of trading days of September. It means that coming back from the summer holidays “big money” saw a bullish picture in the pair. On the fundamental side the reason more…

Irresolute Bernanke and falling dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

Are you surprised? If you a regular reader of our reviews, then scarcely. At the September meeting of the FOMC it was decided to change nothing in the policy of the Fed. The US dollar fell against the single currency by more than two figures. Partly it happened due to the local highs being close (1.34) – breaking through them gave rise to the across-the-board selling of USD. As a result, the movement stopped only at 1.3520, where the pair keeps consolidating now. Besides the traditional list of estimates of economic indicators the commentary to the decision also mentions that the more…

Expanding discrepancy

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we said  that it was high time for the markets to start correcting. However, yesterday’s move can hardly be called a correction in the full sense of the word, as the single currency failed even to go above the intraday low of Wednesday and the daily high was almost the same as a day before. So, now we can speak rather about the end of growth. At such moments the most cautious traders take their profits, but the majority of traders haven’t joined the movement yet. It can be easily understood, as the most important event of these days  – more…

The Fed is ready for the stimulus rollback

By GG Analyst in Reviews 0 Comment

EUR/USD

Those, expecting that the FOMC’s minutes would make things clearer, must have been utterly disappointed yesterday. The minutes didn’t contain any obvious signals of the stimulus rollback in September. The members of the Committee have different views on the future of the Fed’s policy. We should understand that the meeting was held before the release of August’s employment statistics, which have strengthened the beliefs that the economy  needs support less and less.  The improvement in unemployment claims lets market participants hope that the Fed’s members, which have doubted better economic growth, will become more confident about it in mid September. Despite more…