The Big Picture

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday EURUSD spent the whole day between 1.3260 and 1.3320. As we said earlier, the markets are set for consolidation after the strong growth, however it’s really hard to find a reason to purchase the dollar. The Treasury has sharply decreased borrowing in the markets, which in its turn makes the need to purchase the dollar less strong. Besides, the EU peripheral debt markets are again attracting capital since yields are now back to their normal levels. In the news background Germany’s economic outlook for this and next year is of interest. If the outlook is correct, the EU locomotive will more…

Europe’s awakening

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s fluctuations were really impressive. Excluding the yen with the political nature of its rally, the market was squeezed in narrow daily ranges for a long time. It seemed that already nothing could rock that boat. But yesterday the good auction results in Spain were enough to stir up the market. Draghi’s concentration on the economic indicators instead of the financial sector also made its contribution. Now for details. The yield of Spanish 5yr bonds fell down below 4% yesterday in comparison with the peak of 6.46% in July. The bid-to-cover ratio was also at a quite favourable level of 2.07. more…

Europe is weak

By GG Analyst in Reviews 0 Comment

EUR/USD

The beginning of the accounting period seems to be quite reassuring. US aluminium giant Alcoa has posted a better-than-expected profit and expressed moderate optimism that demand will continue to grow in 2013. It has gradually moved the stock market from the middle of the trading range to its upper bound. Turning to Forex, here EU currencies are trailing much behind their counterparts. Yesterday EUR again failed to consolidate above 1.31. The pair had been pushed down before it even got above the mark. Apparently, the euro is being pressurized. It is rumoured that the reason is asset sales by sovereign wealth more…

A brief surge of optimism

By GG Analyst in Reviews 0 Comment

EUR/USD

A number of vital events have happened in the market since our last review. Firstly, Obama formally gained the upper hand in the fiscal policy issue. The fact that the agreement had been finally reached (now taxes for those who earn more than 450K will be raised) led to opening of the currency and stock markets with an upward gap. S&P 500 returned to October highs, but this is all the bulls could do at the time. Since then the market has been steadily trading sideways and even the employment stats couldn’t change the situation. In the currency market opening with more…

Forex bulls are slightly ahead

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the US dollar was much weaker than expected. The few speculators, still staying in the market, tried to take EURUSD to 1.33, but were stopped at 1.3280. After that even the moderately negative news from the USA was enough to push the pair below 1.32. The Consumer Confidence stats were poor. Concerned about the impending fiscal cliff and frightened by press releases, Americans were very cautious about their spending and tempered their optimism. As to spending, we have a preliminary estimate of the pre-holiday activity.  It wasn’t very impressive with growth of just 1% against 2% last year. The same more…