Speculators seek to sell USD prior to Yellen’s speech

By GG Analyst in Reviews 0 Comment

EUR/USD

Speeches of Janet Yellen, Federal Reserve Chairwoman, are often full of cautious comments and are generally treated by the markets as rather dovish. Being just a certified candidate for chair of the Fed, she already maintained a softer stance than Ben Bernanke, so the markets even staked that her advent would help to stop QE reduction. This year she has aroused a fresh tide of anxiety regarding the policy toughening when pointing out that unemployment below 6.5% wouldn’t be a reason to consider raising the rates. Instead the Fed  began to focus on a wide range of employment indicators. Thus, Janet more…

USD grows with money coming back to the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency continued its impressive descent. Earlier we mentioned that it was walking a tightrope close to 1.33. This morning the pair has fallen to 1.3240, which is the lowest level since last September. The selling impulse strengthened due to the release of FOMC’s meeting minutes at the end of July. They focused on advantages of earlier rate increase. They consist in the fact that later a smaller rate increase will be needed and it means that there won’t be a necessity to cool the economy. The smooth monetary policy is the major priority of the world’s CBs. In more…

Kiwi cannot fly

By GG Analyst in Reviews 0 Comment

EUR/USD

Another attack of bears pushed the single currency down against the US dollar and the British pound yesterday. The reason for the pair’s decline below the previous low was formally in the divergence of fundamental statistics. The final EU Services PMIs generally didn’t reach the preceding and forecasted rates. The only exception was Germany, whose PMI was raised from 56.6 to 56.7, but even there the Composite PMI was revised down because of the reduction of the Manufacturing PMI. Upon the whole the EU services sector is demonstrating the most active growth since May 2011, but the fact that the index more…

Fundamental strength of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar keeps recouping its losses. It is remarkable that it is growing not only against the euro, but across the whole board. We can even say that the single currency looked steadier than many others yesterday. Thus, EURUSD hit 1.3400 this morning. And this is the lowest levels since last November. Actually, we can already speak about the beginning of a rally in USD. And behind it there are perfect macroeconomic statistics. Yet, it is still disputable if the Fed’s policy will lag behind these data. In addition to the news which feeds USD’s strength, yesterday there was a more…

USD has been bought beforehand

By GG Analyst in Reviews 0 Comment

EUR/USD

This week we expect a whole series of important macroeconomic news from the USA. It will all start with the release of the GDP data for the second quarter on Wednesday. Further the baton will be picked up by the FOMC’s decision on QE and interest rates and by employment stats on Friday. The GDP is expected to show impressive growth against the recovery after the disastrous first quarter in the background. The Fed will hardly suggest anything new except for the 10-billion tapering of the asset purchasing programme, but traders and investors will still look for hints at the earlier more…