Stats are getting better, but the markets are still on the defensive

By GG Analyst in Reviews 0 Comment

EUR/USD

The US markets kept falling yesterday, but it already didn’t mean much for the euro. Going down to 1.2715, EURUSD hit its 2-month low. However, by the end of the day the pair had stabilized around 1.2745 and at the beginning of active trading in Asia jumped up to 1.2780. Now it keeps trading here (above Thursday’s highs). The eventfulness of the day (numerous statistics and the decisions of two CBs) didn’t develop into any high volatility in the markets. Draghi’s comments were moderately optimistic. He noted that the outflow of capitals from the suffering countries’ banks changed into the inflow more…

A short celebration and a terrible hangover

By GG Analyst in Reviews 0 Comment

EUR/USD

The election celebrations at the markets didn’t last a day.  The US stock exchanges and risky assets which eagerly started to grow on the news from the political arena have sharply reversed. Moreover, the stock exchanges and commodities have sunk even lower than they were at the beginning of the rally. The market has quickly returned to its acute problems. The US Congress has come close to the “fiscal cliff” issue. There hardly will be an easy solution to it, especially with the current president, since the Congress is under control of the republicans. The major disagreement between the democrats and more…

Forex celebrates Obama’s victory

By GG Analyst in Reviews 0 Comment

EUR/USD

The winner is Obama. It’s interesting to see in what succession the markets reacted to the news. Oil shot up higher than other markets yesterday. American WTI flew up to $3.8. The US stock exchanges returned to the area of local highs. And Forex patiently waited for the final election results. In EURUSD the reaction to Obama’s victory was seen only at night. The pair rose from 1.2780 by approximately a big figure. The market reaction comes up to our expectations. Obama’s reelection is good news for risky assets and commodities and bad news for the dollar. Unfortunately, it’s too early more…

Politics and currency speculations

By GG Analyst in Reviews 0 Comment

EUR/USD

It was all so encouraging on Wednesday… The euro-traders repulsed the bears’ attack, got down to active buying of EURUSD at 1.2945 and in a couple of hours brought the pair to 1.30. It is of interest that by opening of trades in the USA the euro had been carefully “put” back at the starting point of the mini-rally. Thus, the 1.3020 mark proved to be a strong resistance. Formally the bulls took cover under two favourable reports on spending in Germany and France. But if we take a closer look at the reports, they are not that favourable. The German more…

Demand for risk is recovering

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro had a hard time yesterday. For an hour it was attacked by a hailstorm of poor news from Europe. The German and Euro-Zone Manufacturing PMIs came out not only worse than expected, but even worse than the previously reported levels, thus reflecting a higher pace of business slowdown in comparison with the last month. So it’s hard not to start selling the euro, especially taking into account that before that many expected a confident recovery. Moreover, one of the most respected business climate indicators by Ifo dropped down to the level of 100, which is the lowest mark since more…