Unsteady upturn

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets keep going up, albeit rather unsteadily. The common currency is systematically purchased against the dollar. This week the slope of the curve is equal to the one, which was observed in the previous three weeks. Yet, so far there hasn’t been even a single attempt to break lower, as it was one, two and three weeks ago. However, we should mention that opportunities for such a retracement will be quite many in the coming days. The major risk is posed by the ECB’s meeting with the further press-conference of Draghi, scheduled for tomorrow. Regarding the USA, the ADP employment more…

Demand for risk is recovering

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro had a hard time yesterday. For an hour it was attacked by a hailstorm of poor news from Europe. The German and Euro-Zone Manufacturing PMIs came out not only worse than expected, but even worse than the previously reported levels, thus reflecting a higher pace of business slowdown in comparison with the last month. So it’s hard not to start selling the euro, especially taking into account that before that many expected a confident recovery. Moreover, one of the most respected business climate indicators by Ifo dropped down to the level of 100, which is the lowest mark since more…

EUR learns to ignore the negative

By GG Analyst in Reviews 0 Comment

EUR/USD

This week abounds in important news releases, but all of them are expected a bit later. Looking forward to the news or being particularly cautious, the market participants preferred to keep the currencies within the recent ranges yesterday. Anyway, we can speak about some progress in the single currency since EURUSD closed out the day at 1.3060 against the opening level of 1.3020. In itself this move wouldn’t be a sign of something, but in the context of declining stock and commodity markets it reflects the steadiness of the euro purchases at the current levels. The American indices had displayed some more…

Fed and ECB: a one-two punch for the dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke surpassed the optimistic expectations of the markets. The FOMC announced the beginning of additional purchases of the mortgage-backed securities. For this purpose the CB is going to spend $40bln each month. Moreover, we shouldn’t forget about the ongoing Operation Twist, which presupposes buying of long-term securities by means of selling the equal amount of short-term ones. The monthly volume of such transactions makes 45bln. All this is done to reduce the long-term interest rates. Besides, the period during which the Fed will be obliged to keep the interest rates low has been extended to mid 2015. Thus, in the interval more…

Instead of launching QE3 FOMC may just indicate its parameters

By GG Analyst in Reviews 0 Comment

EUR/USD

Commonly the opinions of markets and economists coincide. Eventually, the latter give their recommendations to traders, who thereafter shape the market. But sometimes it is different and now is just the case.  On drawing near the FOMC’s conference, economists feel more and more eager to announce the parameters of new purchases. Yet, many believe that these large-scale purchases won’t take place in September.  We’ve already mentioned that the current situation is not as bad as it was during the previous 2 launches of QE. It would be more correct to say that there exist many threats to the further growth, which more…