Waiting for Cyprus and the Fed

By GG Analyst in Reviews 0 Comment

EUR/USD

As was widely forecasted by skeptics, including us – the government of Cyprus didn’t come up to the final decision on the bank deposit levy. None of the parliamentarians supported the initial plan: 36 voted against and 19 abstained. And though many believed that the shift of the burden to larger deposits would be treated positively, so far traders have preferred to sell the single currency. Yesterday EURUSD hit a fresh low since last November. The stock markets from time to time stumble over sales – the current bounce off the highs looks quite moderate from the historic point of view. more…

Bernanke knows how to support the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke said everything that was necessary to inspire confidence in the markets. At times it is very difficult to understand whether he got into the markets’ trap ( as just a day before he delivered his speech the markets had suffered the sharpest decline in the last few months) or really remains ultra-dovish, though his policy is somewhat warped in some markets. So, Ben Bernanke, delivering a semiannual testimony before the Senate Banking Committee, pointed out the necessity to preserve the stimulating course of the monetary policy. It dispelled the fears which arose after the FOMC’s meeting minutes in January. The more…

A respite after the slaughter

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency which was one of the most stable currencies since the beginning of the year, was falling against a great number of markets yesterday. It’s not all about increase in demand for safe assets and the dollar, which followed the Fed’s meeting minutes. The euro is influenced by inner factors. Yesterday’s preliminary stats on the February PMI failed to meet the expectations. The Services PMI declined from 55.7 to 54.1 against the forecasted decrease to 55.5. The Manufacturing PMI seems to have resumed growing (now the index is at 50.1 whereas 50.0 would have shown retention of the rate more…

Fed’s meeting minutes triggered selling in the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed’s meeting minutes somewhat cooled the markets’ adour about the further QE. From them it became clear that some members of the FOMC plan to table revision of  the monthly  size of bond purchases already in March. Probably, March is not the best time since it may start with automatic cuts of government spending in the USA. The battle for the fiscal cliff was won by Obama, rescheduling of the debt ceiling discussion is also his victory. Yet, no matter for how long a deadline is extended, dealing with these burning issues cannot be escaped after all. All this again more…

Fed eases the policy and raises transparency

By GG Analyst in Reviews 0 Comment

EUR/USD

The crisis is not the best thing to be joyed at, but now it is the very factor which raises the transparency of banks. Important: the Fed WILL extend the asset purchase programme. So, now the current purchases of the mortgage-backed securities to the Fed’s balance sheet (40bln/month) will be joined by purchases of US Treasuries (45bln/month). Operation Twist expires this year. The most unusual and surprising thing here is that the Fed has decided to set the parameters, which would serve as signals for consideration of a tougher monetary policy. Thus, for the Committee to start thinking about a more more…