Rebalancing: Europe supported, Britain unaffected

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro rate didn’t fluctuate much yesterday: for the most part of the day the currency hovered between 1,28 and 1.2770 and only by the end of the day it fell from 1.28 to 1.2750. Such performance was mainly connected with the profit-taking in the euro after the more than impressive growth last week. Though the news feeds attributed the weakness of the euro to the Chinese statistics (reduction in exports), we don’t think that those concerns affected the price performance yesterday. The caution about risk demand was also caused by profit-taking in stock exchanges, which in its turn was spurred more…

Autumn seems to sneak in a bit earlier

By GG Analyst in Reviews 0 Comment

EUR/USD

In one of our reviews last week we said that the markets could grow till the beginning of autumn. Yet now there is a feeling that autumn is right on the threshold. The optimism of stock market players, which has been growing after the recent release of FOMC’s minutes, reached its zenith yesterday. It’s surprising that the markets supposed to deal with a chain of favourable economic reports and didn’t take into account that the Fed could revise its plans for easing the policy in September. Beige Book published yesterday once again proved that things are getting better in the USA. more…

Good that Draghi won’t attend Jackson Hole symposium

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s amazing that the news about the absence of Draghi and other members of the governing board at the symposium in Jackson Hole should give so much help to the single currency. Anyway, there is a core of sense. Draghi is said to be busy drawing up a plan of Europe’s bailout. But being honest, most of the time is of course spent on searching for the compromise and arguments in favour of further expanding of the ECB’s balance sheet. It is very likely that Draghi and his followers are trying to persuade that it’s not the best variant to reply more…

Correction after the cyclic maximum

By GG Analyst in Reviews 0 Comment

EUR/USD

On Thursday the markets again performed out of concord. The single currency grew and the stock exchanges, on the contrary, depreciated, unveiling the unsteadiness of the four-year highs hit earlier this week. The mood of stock exchanges was spoilt by the statements of the Fed’s members, who split over the future of the incentives. Charles Evans, a traditional dove, called for the further stimulation of the economy. James Bullard, who actually belongs neither to hawks nor to doves, on the contrary asserted that there was no urgent need in incentives. The important thing here is not so much the comments as more…

Rise till fall comes

By GG Analyst in Reviews 0 Comment

EUR/USD

The minutes of FOMC’s meeting on July 31 – August 1 had more specifics about them than usual. As has been noted, the Fed is prepared to launch the programme of economic incentives if the figures remain that poor. Such news certainly filled the markets, especially currency ones, with enthusiasm. The risk-sensitive EUR/USD grew from 1.2470 to 1.2530 within just 3 hours. It’s worth mentioning that already before the release, during the day, the euro had been in good demand, cementing its positions above the previous highs. At the moment the single currency is trading close to the seven-week highs, near more…