FOMC intends to act with decision

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed is preparing the markets for a more dramatic increase of interest rates from the beginning of toughening. Besides, Fed Chair, despite all vagueness of her comments, made it clear that the markets were underestimating closeness of rate increases. It can be treated as a promise of the first increase already in the first 3-4 months of the next year instead of the middle of the year as expected earlier. It seems that Janet Yellen tried to imitate Greenspan, making obscure comments and leaving herself more space for maneuver. If she starts to imitate not only Greenspan’s manner of wording, more…

Overbought USD

By GG Analyst in Reviews 0 Comment

EUR/USD

1.2859 is another new low in EURUSD. Since the moment when this low was hit at the beginning of the EU session the pair has been consolidating above 1.2900. Though it is hard to believe in growth of the single currency on some good news from the eurozone, there will be reasons for a pullback in the pair. Now market participants are building the earlier end of the QE programme and/or the earlier beginning of rate increases into the rates. It is obvious from the reaction of the debt and stock markets, but the currency market seems to have already made more…

EUR got close to 1.31

By GG Analyst in Reviews 0 Comment

EUR/USD

This week the EU is planning to discuss a new stage of sanctions against Russia regarding help the latter delivers to the Ukrainian separatists. Their success has been producing a negative effect on the situation in the markets lately and, as a result,  has put pressure on the single currency. Another round of sanctions will hamper the economic potential of Europe even more. EURUSD has reached 1.3112 this morning in view of the growing geopolitical risks. Also, the euro is affected by hints of Mario Draghi, made a week ago in Jackson Hole. After his speech now the markets expect further more…

USD’s rally to pause at the end of the month

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock market feels more and more confident at a new level. S&P 500 has exceeded 2000 and the global asset market reached the capitalization of 66trln, as calculated by Bloomberg. Before the global financial crisis appreciation of the stock markets often turned out to be USD’s decline and strengthening of the currencies in the developing countries, which also affected EUR and the pound. Though the pound in theory can follow this very tendency against growing chances of the rate increase earlier than in the USA (see below), the euro’s recent weakness has been quite reasonable. And don’t say that more…

EUR is kept off the levels above 1.32

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency didn’t manage to recover yesterday. EURUSD was below 1.32 almost all day long yesterday, though the major rivals of the single currency felt much better. Besides, S&P 500 crossed the level of 2000, which was a significant moment for the markets. The index didn’t move far from this level and went on the defensive right after hitting the level. As we mentioned yesterday, the initial weakness of the euro was maintained by the divergence between the US and EU monetary policies, once again emphasized by the comments of the Fed’s and ECB’s governors in Jackson Hole. But further more…