And again no news is good news for Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar keeps actively depreciating due to the renewed demand for risky assets. EURUSD is hitting local highs, growing for seven out of the last eight days. Yesterday’s high made 1.3138, afterwards the pair retraced, but still managed to remain above 1.31. As we see, the absence of important news is favourable for this pair. Yet, we shouldn’t forget that the biggest share in this rally belongs to the poor data on employment and manufacturing activity in the US. Earlier each time it ended with a sharp outflow of money from risky assets and with appreciation of the US currency. more…

Sad payrolls

By GG Analyst in Reviews 0 Comment

EUR/USD

The published employment statistics showed that the warning signals of other indicators earlier last week had been absolutely correct. According to the latest labour market report  the number of jobs in the USA grew just by 88K against the expected 190K. In line with the recent correlations the US dollar was falling on the poor stats. The single currency went above 1.30 at some point, which had been last seen only on March 25. Now the euro is trading slightly below this level – at 1.2990. In the meantime, the US exchanges were in correction. Maybe it is too early to more…

Forex wild dancing

By GG Analyst in Reviews 0 Comment

EUR/USD

It was a nervous and busy day yesterday. The single currency was yielding to the pressure put by the dollar demand. Here we observe quite a strange correlation and would like to enlarge on it. The large-scale selling of the yen stirred all the crosses with it, which in its turn forced market players to take their profits and switched to the liquid assets like dollars. This is where the decline of the euro by the beginning of the EU session came from. Further the initial decline was gradually offset. But still the pair hadn’t managed to recover fully by the more…

The BOJ shifts goals

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s a big day for the single currency today. Since Draghi took up the post as the ECB’s head the euro has become much more volatile during press-conferences after the bank’s meetings. It’s mainly due to the fact that Draghi actively employs non-traditional means to help the suffering economy of the eurozone instead of sticking to the formal approach of his predecessor Trichet, who generally strived to maintain inflation. Besides, Mr Draghi’s forecasts prove to be much more precise. For instance, he promises that the EU economy will turn to growth in the second half-year. Judging by the statistics, this acceleration more…

EUR took advantage of the verdict to the Cyprus banking future

By GG Analyst in Reviews 0 Comment

EUR/USD

After a week of markets’ and investors’ tortures, Cyprus has eventually found what it can sacrifice to prevent the uncontrolled swift crash of its financial system. Frankly speaking, Cypriots agreed to a slow and gradual dying of their banking sector. You see, in exchange of €10bln from the international creditors (the EU, the IMF, the ECB) Cyprus makes the second largest creditor of the country – Laiki- a “poor bank”, which in addition to its own debts will get toxic debts of the Bank of Cyprus. Deposits above 100K won’t suffer restructing and won’t be taxed. However, big investors may lose more…