Profit-squeeze in USD

By GG Analyst in Reviews 0 Comment

EUR/USD

China has pleased the markets a bit, announcing allocation of funds to five largest banks of the country. $81bln is not a very big sum and bears no comparison to the two preceding programs of incentives. However, the market more and more expects that the National Bank of China will remain on the sidelines at the time of sharp economic slowdown. ZEW Economic Sentiment proved to be stronger than expected and that aroused some optimism regarding the euro. The main index fell from 8.6 down to 6.9 instead of the forecasted reduction to 5.2. The indicator of the current situation tumbled more…

The Fed needs to be more cautious

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency fell under pressure and dropped below the support line of the short-term uptrend. Yet, in the afternoon it found support near the lows of the preceding day due to the poor stats from the USA, which saved the pair from further selling. The EU trade balance statistics proved to be contradictory. The seasonally adjusted surplus fell short of the expectations, making €12.2bln against the forecasted 15.9 and the preceding value of 13.8bln. But for all that, the non-seasonally adjusted value of the indicator reached the impressive 21.2bln against the expected 10.5 and the preceding value of 16.7. more…

AUD is crushed by slowdown in China

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro-bulls still hope to offset at least a part of the dollar’s appreciation. On Friday they managed to take the pair up to 1.2980. But at these levels the pair found enough buyers, which threw it off closer to the middle of the traded range. The short-term support, which appeared last week, still works, showing signs of a feeble uptrend. Probably, it will become stronger if the EU statistics are favourable and the US ones are poor. The EU trade balance can be one of such news. It has been steadily high in the recent months due to the economic more…

Finding a reason for correction

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD has been flat since the beginning of the week, but even this is not enough to state a sharper growth of the dollar index since last November. Each currency has its own reasons to depreciate against the dollar. Thus, the euro is under the pressure of deterioration of the investment climate due to the sanctions against Russia. The cut of the interest rates by the ECB last week also hampers the attractiveness of the single currency. Anyway, the reaction last week and earlier this week was so strong that on Wednesday, Thursday and Friday bears managed only to maintain their more…

Nothing will ever stop the dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

EUR keeps waging an attack as if it made up for the unimpressive beginning of the year. Then the dollar was expected to show almost immediate growth, believing that QE tapering was a good reason for the currency’s appreciation. However, as seen, this reason is posed by the prospect of the rate increase. It’s of interest that market participants often ran ahead of time then, expecting earlier toughening of the policy, though already in a few months there was nothing else to do but suppose further incentives. Now the situation seems to have changed radically. According to the Fed’s research, the more…