Plain payrolls, mixed reaction

By GG Analyst in Reviews 0 Comment

EUR/USD

Friday’s data on the US employment proved to be surprisingly favourable. The employment grew by 288K and the statistics for the preceding two months were revised up by 36K in total. The unemployment decline, which looks really shocking at first sight (from 6.7% to 6.3%) is ensured by another decrease in the workforce. In April the participation rate again occurred at 62.8%. This is a low, which has been hit only twice in modern times – in October and December 2013. Before that the indicator was that low only in the late 70s, but at that time it was in the more…

Roller Coaster

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was put under heavy pressure after the release of Germany’s inflation data. EURUSD dipped down to 1.3800, formally leaving the gap uncovered: the high was hit at 1.3878. As expected, Germany’s consumer inflation proved to be lower than forecasted by the experts at the beginning of the week. The annual rate of price growth in the largest German economy made 1.3% against the expected 1.4%. This acceleration against last month’s 1.0% y/y was provoked purely by the low base effect as in April the prices tumbled by 0.2%. The ECB members often say that the long period of more…

Bulls try to heat up EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was being purchased on Friday as if along a ruler. The euro/dollar was growing strictly within the narrow upward channel. It speaks not only about presence of big buyers, accurately picking up the pair, but also about absence of any idea in the markets. The pair remains in the grip of uncertainty of the ECB’s policy. Despite the inflation slowdown, in Germany as well, most members of the Bank’s governing board treat a rate cut or any other easing of the monetary policy as a certainly pernicious thing with economic growth in the background. Anyway, market participants keep more…

USD falls into a nosedive

By GG Analyst in Reviews 0 Comment

EUR/USD

The risk demand showed up where no one expected it. We had thought that the meeting minutes would be tougher, but the reality proved to be quite different. FOMC is trying to move off Bernanke’s sharp limits which could become a guideline for the markets, when the Fed will raise the rate. Strictly speaking, it is not a sign of the extra-soft policy, but still doesn’t let us speak about its toughening. Thanks to it the US stock markets grew by more than a percent and the dollar got weaker across the board (except for the yen). EURUSD rose to 1.3870, more…

EUR redeemed its positions

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency regained its positions after Draghi’s speech last Thursday. Yet, it is not only the merit of the EU officials, who have been saying since the beginning of the week that QE and other ways to ease the monetary policy are merely treated as possible options for the future, rather than as a predetermined scenario, which is simply not highlighted yet. The dollar is pressurized also due to the soft rhetoric of the Fed’s members, who intend to raise the rate when the economy is more ready and who also consider the current policy not transparent enough for the more…