USD makes a step back before FOMC’s meeting

By GG Analyst in Reviews 0 Comment

EUR/USD

The Ifo Business Climate Index dropped in October more than expected. The general index fell from 104.7 to 103.2, while only 104.6 had been expected. The Ifo Current Assessment and Expectations again declined simultaneously, to 108.4 and 98.3 from 110.5 and 99.3 respectively. The current rates are the lowest since the end of 2012. Investors tend to believe that in the second half of the year Germany will fall into technical recession, i.e. will suffer reduction of the GDP for at least two quarters in a row. Yet, it should be taken into account that the country has the strong beginning more…

EUR suffers losses in the period of the market appreciation

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency fell under pressure after Reuters’ message that the ECB could start purchasing corporate bonds already in December. That news deprived the euro of about 0.7% and pushed EURUSD down to 1.2700. Formally this level held out , but it seems to be just a question of few days, when the single currency will continue its downward movement. Investment banks have already hastened to announce the end of the correction and the beginning of a new downward trend with the targets at 1.25 and in the longer term at 1.20. Weidmann, Bundesbank President and the main oppositionist of more…

Will FOMC revise its plan to terminate QE in October?

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency keeps drifting near 1.2750, having no desire to fall and no strength to grow. The six-week decline of stock indices arouses more and more concern among the Fed’s officials. Though they don’t assert that this behaviour of the markets will make FOMC revise its plan to end QE in October, they still promise to consider it in the coming days. Rosengren, President of the Federal Reserve Bank of Boston, said that QE will be finished in October if nothing dramatic occurs. So now market participants are trying to make out how dramatic the recent sale, which lasted for more…

Stock exchanges set the trend

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the euro-bulls didn’t let the pair cancel out the growth of Wednesday. The pair was picked up on the dip to 1.2700 and was pushed off above 1.2800. It’s absolutely unbelievable volatility in comparison with that mire, we observed last summer, when VIX reached the pre-crisis lows. Now it is at its three-year highs due to the impressive correction in the stock indices. It is that very profit-squeeze, we mentioned so often before. To be honest, we expected it much earlier, so now buyers’ enthusiasm has significantly subsided after hitting 2000 in S&P500. Another, more direct, reason for the beginning more…

USD eases pressure

By GG Analyst in Reviews 0 Comment

EUR/USD

Last week ended with a slight appreciation of the dollar. But this growth wasn’t enough to make up the losses, suffered earlier that week because of absence of a sound reason. This week players seem to be willing to continue locking in profits in the US assets. The dollar and stock indices are falling simultaneously. It is remarkable that S&P 500 has gone below the local low of August and is at risk of getting to the highs of early March – mid May. These levels (near 1870) can become quite a good support just the same way they served as more…