The wind of change

By GG Analyst in Reviews 0 Comment

EUR/USD

Last weekend was really eventful. Besides, all the published news contributed to the reduction of risk appetite. The euro opened the week with a huge gap down, broke the 1.30 level and stopped just at 1.2950, though Friday’s trading was closed at 1.3080. To begin with, the American employment data turned out to be utterly disappointing. The number of jobs in the non-farm sectors grew by 115K. Remember that the earlier market optimism in regard to this indicator was gradually melting away last week. At its beginning the markets forecasted the 200K growth, while by its end the jobs were expected more…

Bernanke’s speech supports demand for risk

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed didn’t manage to produce any impact on the market situation and FOMC assumed a neutral policy stance. Even changes in the forecasts balanced each other. The growth expectations for this year improved (from 2.6% to 2.7%), while the long-term forecasts, on the contrary, were revised down (for 2013 from 3.0% to 2.9%% and for 2014 from 3.7% to 3.4%). Yet, the number of players believing that 2014 will be the year of an extremely tough monetary policy has increased. In the first minutes after the news release the dollar got momentum for growth, but didn’t manage to consolidate the more…

Markets are on the tenterhooks waiting for the Fed’s press-conference

By GG Analyst in Reviews 0 Comment

EUR/USD

Tonight the Fed will announce the results of the two-day FOMC meeting. The CB is not expected to take any certain measures, this is why the markets will tend to look out for the signs of change in the Committee’s mood.  There is much food for thought as a series of strong news on the economy has been followed by a batch of rather poor data. Although the labour market is growing, the rate of job creation has conspicuously decreased. The US consumer sentiment is also retreating from its maximum levels, achieved over the previous months. The Conference Board Consumer Confidence more…

The euro retests 1.30, demand for safety grows

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s hard to decide what to do with the dollar when a batch of good news is followed by a series of poor figures. The dollar was actively bought after the Fed’s policy had been revised in favour of greater strictness, but then the poor news on employment and inflation added to the tough rhetoric from the FOMC officials. That uncertainty made the euro/dollar fluctuate between 1.30 – 1.31. In the middle of the week the pair attempted to draw the reversal pattern on the speeches of the CB’s officials which boosted the market growth and consequently supported the demand for more…

Maybe another QE? Pretty please…

By GG Analyst in Reviews 0 Comment

EUR/USD

At first sight the current picture is not that bad. The markets have been growing for two consecutive days. Moreover, yesterday’s after-sale moderate purchases at the bottom have been followed by quite a confident leap in stock prices. Partly the demand for risky assets can be explained by the recent commentaries of Fed’s officials. Thus, if last week and the first half of this week abounded in hawks’ speeches, the last two days have been rich in the statements from more moderate representatives of the FOMC. Yesterday the markets breathed a sigh of relief when Sarah Raskin spoke about the Fed’s more…