Market is making a pause before G20 and OPEC – non-OPEC

By Admin in Reviews 0 Comment

G20

EURUSD

The pair, probably, laid to the floor. Yesterday EURUSD stabilized around 1.1260 level, and it continues to trade there today. Hesitations of market participants can be explained: they do not have ideas for the further trend development or drastic break of growth to the decline side. Meanwhile, nobody wants to run into the future since the weekend will bring too many official multinational meetings. IMF will report in Washington its vision of world economy (Analytical chapters of the report were published a week ago). As well we can wait for the cooperative announcements from G20 that will meet during Summit. Moreover, more…

The silence of G20 enables JPY to depreciate

By GG Analyst in Reviews 0 Comment

EUR/USD

Last weekend there was held a meeting of G20 central bank governors and finance ministers. The representatives of the largest countries, constituting about 85% of the global economy, focused on stimulation of economic growth. Nothing was said about currency movements. Thus, the current rally of the dollar received a tacit approval, so the bulls may gain the lead, at least for a while. Now USDX is trading near its two-year highs. Then growth of the dollar was explained by weakness of the single currency. And now it is USD’s rally, aroused by expectations of the monetary policy tightening and of impressive more…

Again at the crossroads

By GG Analyst in Reviews 0 Comment

EUR/USD

Monday didn’t abound in news, so EURUSD closed the day just where it started it, i.e. remained at 1.3350. The movements during the day were petty and of speculative nature and therefore can be ignored. The only stats deserving attention yesterday were those on the EU current account, which in December shrank a bit more than expected to 13.9bln against 15.9 a month before and the forecasted decline to 15.3. Anyway, with a broader view of things last year seems to have been quite favourable regarding the euro zone international trade. It was largely due to depreciation of the single currency more…

G20 didn’t dare to name the shame

By GG Analyst in Reviews 0 Comment

EUR/USD

G20 is a dog that barks and doesn’t bite. The joint statement pointed out that the countries would abstain from competitive devaluation of their domestic currencies. Anyway, the states do have some space for maneuver since they are not forbidden to carry out quantitative easing and increase expenditures to support growth of their domestic economies. Actually, that is what all were after when expanding their currency reserves. Thus, the fears that Japan’s politicians would be shaken a finger at and that the Fed would be more cautious proved to be groundless. All this is a good stimulus to ease tension in more…

Take your profits and watch from the sidelines

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency had quite a hard day Yesterday. While the daily open was at 1.3450, the daily low was reported a bit above 1.33. It was largely due to the poor stats on the EU economy. In the fourth quarter the region’s economy shrank by 0.6%. The same slowdown was experienced by Germany. The French economy shed 0.3%, but it was growing very slowly last year and, as a result, the yearly decline made 0.3%. Italy’s economy lost 0.9% and the yearly rate made huge – 2.7%. Portugal stroke the ground: -1.8% in 4Q after the decline by 0.9% in more…