Have patience

By GG Analyst in Reviews 0 Comment

EUR/USD

The failures in the first half of the day didn’t distress the euro. FOMC’s member Bullard made it clear that the Fed was not going to curtail the stimulation programme in the near future. Anyway, the market reaction was relatively reserved as the markets were waiting for today’s speech of Bernanke. In the meantime, the euro is consolidating above 1.29, which didn’t yield yesterday morning. And again growth of the single currency has been caused by the upward movement of stock exchanges instead of the positive environment in the euro zone. This growth will hardly be long-lasting. The US stock markets more…

The downtrend in EUR is getting clearer

By GG Analyst in Reviews 0 Comment

EUR/USD

The domination of high technology in trading and many risks arising in this connection again came to the surface yesterday, when the false report in Twitter in two minutes washed over 130bln out of the market. Two messages from the hacked account of the Associated Press about an explosion in Washington caused heavy selling in the stock market, which deprived it by about a percent. Yet, soon the situation stabilized. Being important for stock exchanges, this news didn’t produce an equally strong effect on the Forex market. Yesterday the pair was mainly affected by the news on the business activity in more…

What is stronger: the Fed’s printing press or the EU crisis?

By GG Analyst in Reviews 0 Comment

EUR/USD

The sure upward march of the US stock exchanges yesterday wasn’t taken up by Forex. From the technical side we see that yesterday the single currency was retracing after the preceding growth from 1.2750 to 1.3120. It’s however possible that the situation is quite the opposite and that growth was none other than a retracement (it would be the 61.8% Fibonacci retracement after the drop from 1.37). Since from this viewpoint the situation looks controversial, let’s turn to the fundamental factors. The single currency enjoys rather poor economic indicators, but the ECB firmly resists flooding the economy with money by purchasing more…

Bernanke spurred decline of the dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

The safe assets keep depreciating. In addition to weakness of the Japanese yen, the US dollar has been falling against the euro for five days in a row. This morning Ben Bernanke has added fuel to the fire, saying that the economic conditions are still far from what he would like them to be. Such words have been immediately taken by the markets as a signal that the FOMC will not hurry to terminate the asset purchasing programme. The thing is that unlike the BOE, where the chairman may for several meetings in a row be in the minority, in the more…

Keep stimulating growth

By GG Analyst in Reviews 0 Comment

EUR/USD

The persistent buying of the single currency yesterday let it rise to the consolidation area of Monday and the first half of Tuesday. Regarding Cyprus it is rumoured that Russia is negotiating buying of one of the Cypriot banks or shares in several banks. Besides, they say that , letting Gazprom in, Cyprus is staking on the future earning from gas. Neither of the rumours hasn’t been confirmed yet. In the meantime, the banks of Cyprus are still closed as the parliament hasn’t taken any decision on the deposits yet. Most likely, Cyprus will be postponing it till all the thinkable more…