The Fed points out improvement despite contraction in government spending

By GG Analyst in Reviews 0 Comment

EUR/USD

The US S&P 500 keeps suffering losses. Yesterday it decreased by other 1.3%. The stock bulls have a cause for concern. First of all, the ADP statistics proved to be worse than expected, showing employment growth in the private sector by 135K in May against the forecasted 171K. Of course, it’s better than the increase reported in April – 113K (revised down from 119), but it is too little to speak with confidence about steady growth. Anyway, in the Fed’s Beige Book, which was published later yesterday, market observers noted a surer growth, varying “from modest to moderate”, in 11 regions. more…

The US consumer sentiment helps the national currency

By GG Analyst in Reviews 0 Comment

EUR/USD

The scenario we described earlier is coming true. Instead of following the risk on/off principle, the currency market is moving on the difference of economic and monetary policy forecasts. The first scenario, which dominated before the crisis and the first years after it, presupposes weakening of USD against the background of stronger global economic growth. Very often the US statistics serve as the main sign of such strengthening and the major driver. Now the situation is a bit different. Strengthening of the labour market, growth of stock indices and multiyear highs of Consumer Confidence Index don’t let you automatically consider the more…

Be careful, bulls

By GG Analyst in Reviews 0 Comment

EUR/USD

The long holidays did good to the markets. This day began favourably for the Asian exchanges. Due to their growth the previous losses of the euro (the decline to 1.2880) have been recouped and the pair has returned to 1.2930, where it was trading yesterday at the end of the day. It’s also worth mentioning that in the meantime S&P 500 has hit the support and stocks are in demand on the drop below 1650. Is it possible that the market was consolidating after the previous tide of growth last week and will start growing again now? In theory, yes. Formally, more…

EUR again failed to break through 1.30

By GG Analyst in Reviews 0 Comment

EUR/USD

On Friday the single currency came up against the resistance at 1.30. The pair once again failed to pass this key level, so we are still staking on the bearish scenario of events. While the United States is about to start a cycle of the policy toughening (now it concerns only the stimulus pullback), Europe is still in limbo – the situation is mainly influenced by exterior factors here (affairs of the USA and China). Europe is unable to get out of recession on its own. It’s sad that this situation is already treated as normal. Germany’s final GDP for the more…

Bernanke: a dove with a hawkish beak

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke and FOMC’s meeting minutes arranged a roller coaster attraction for the markets yesterday. Since the speech of the Fed’s head to the Congress was the main event of the day, before it the markets had been quiet, gradually selling the dollar and purchasing income assets (now probably only stocks belong here). The US currency started falling more intensely when Bernanke mentioned that if the stimulus was curtailed too soon, it might hamper the labour market. The stock market hit new highs and EURUSD shot up to 1.30. However, it failed to consolidate there as then followed an avalanche of selling, more…