Here comes the old trend

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency feels quite well at the beginning of the week. With the yen and pound being sold, the euro remains the single alternative to the dollar. Again the euro is purchased when the US dollar is quite strong. The major risk for the single currency is posed by elections of the top leadership in the southern countries. The first results of the parliamentary elections in Italy will come today after all polling stations are closed at 2 pm (GMT). Different surveys offer different outcomes:  some speak about the narrow win of Pierluigi Bersani’s democratic party, others think that the more…

A respite after the slaughter

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency which was one of the most stable currencies since the beginning of the year, was falling against a great number of markets yesterday. It’s not all about increase in demand for safe assets and the dollar, which followed the Fed’s meeting minutes. The euro is influenced by inner factors. Yesterday’s preliminary stats on the February PMI failed to meet the expectations. The Services PMI declined from 55.7 to 54.1 against the forecasted decrease to 55.5. The Manufacturing PMI seems to have resumed growing (now the index is at 50.1 whereas 50.0 would have shown retention of the rate more…

Fed’s meeting minutes triggered selling in the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed’s meeting minutes somewhat cooled the markets’ adour about the further QE. From them it became clear that some members of the FOMC plan to table revision of  the monthly  size of bond purchases already in March. Probably, March is not the best time since it may start with automatic cuts of government spending in the USA. The battle for the fiscal cliff was won by Obama, rescheduling of the debt ceiling discussion is also his victory. Yet, no matter for how long a deadline is extended, dealing with these burning issues cannot be escaped after all. All this again more…

Stock market optimism is in Forex’s favour

By GG Analyst in Reviews 0 Comment

EUR/USD

One of the clearest signs of optimism in business is increase in M&A deals. The companies, which have access to relatively cheap loans and which preferred not to invest when the situation was pretty much uncertain, now feel that the world is changing. It seems that they started to open their sacks with cash more and more eagerly. Of course, we are talking about strong companies as the crisis has left either winners or firms with good brands but less favourable access to money. The latter are being hunted with enthusiasm now. News about increase in activity of this kind gives more…

The bears attack

By GG Analyst in Reviews 0 Comment

EUR/USD

Triggering of stop-orders in EURUSD drove the pair to 1.3519 yesterday, but at these levels sellers entered the game. As a result, the daily close was slightly negative, 1.3450, but now we can observe some growth in the dollar, which pushed the rates even lower, to 1.34. In the charts we see that yesterday’s reversal is absolutely identical to the situation on February 7. The same downward wave took the pair from 1.357 down to 1.335. If this time the decline is of the same scale, we may see EURUSD somewhere between 1.3250 and 1.3270. Yesterday’s upsurge of the single currency more…