Portfolio rebalancing in the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Just as we expected, the profit-squeeze lasted till the end of the week. It’s remarkable that the stock markets were moving in the opposite direction. This performance doesn’t look surprising if we regard it as the year-end portfolio rebalancing. Thus, on Friday EURUSD dropped below 1.32 and at some point hit 1.3160. Yet now purchases in the pair are rather moderate. In the meantime, the US stock indices, which were appreciating at the end of the previous week, are sliding down. Apparently, the markets will demonstrate the same unconformity till the end of the week, with a new trend setting only more…

EUR – the strongest major at the moment

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets seem to be gripped by the holiday mood. The decrease in the number of market participants clears the way to stop-order levels. It’s especially typical of our digital era, when trading depends largely on the digital algorithms. At such moments like this the pair, leaving the established trading range, stumbles over an avalanche of stop orders, which boost the further motion etc. In our case, the single currency, cursed by everyone earlier this year, is now the best among the majors. For instance, against the dollar the euro has been appreciating for 8 days in a row and is more…

Are the expectations too high?

By GG Analyst in Reviews 0 Comment

EUR/USD

The slight concession from Boehner inspired the currency markets on Friday. EURUSD was soaring up during the US session and grew on triggering stop orders this morning. The latest maximum hit by the pair is 1.3187. Yet since then the euro has slightly rolled back on the retracement of Asian markets and is now trading close to 1.3150. Possibly, the bulls’ efforts were not vain -the pair rose to its 7-month highs, which opens the way up to 1.3280, the starting level of the May sale. Despite the general optimism, Boehner’s concession is just the first step on a long road. more…

Fed eases the policy and raises transparency

By GG Analyst in Reviews 0 Comment

EUR/USD

The crisis is not the best thing to be joyed at, but now it is the very factor which raises the transparency of banks. Important: the Fed WILL extend the asset purchase programme. So, now the current purchases of the mortgage-backed securities to the Fed’s balance sheet (40bln/month) will be joined by purchases of US Treasuries (45bln/month). Operation Twist expires this year. The most unusual and surprising thing here is that the Fed has decided to set the parameters, which would serve as signals for consideration of a tougher monetary policy. Thus, for the Committee to start thinking about a more more…

The higher we grow, the faster we fall

By GG Analyst in Reviews 0 Comment

EUR/USD

The bears are trying to grab the markets in their paws. Yesterday the common currency didn’t have even a single chance to test 1.3140. The market reversed at 1.3125. Yet, it doesn’t change anything now. As has already been mentioned, the recent sharp upsurge from time to time stumbled upon the short-term selling, after which players again started buying the single currency. But this time the decline is smoother and there isn’t any sound reason on the euro’s side. Now it’s all about the dollar. The latter started appreciating in many asset classes. And largely it is a result of the more…