Another hint at the rate cut by the ECB

By GG Analyst in Reviews 0 Comment

EUR/USD

As expected, the ECB is trying to put pressure on the single currency. On Monday several members of the EU CB made it clear that the current rates are not ultimate. The bank still can afford to decrease them. Besides, it seems that while the ECB has been keeping the deposit facility rate zero, officials have worked out for themselves a technical possibility of negative interest rates. Now this measure doesn’t look extreme and entailing unpredictable consequences. The reasons why euro-officials put pressure on the single currency are quite understandable. Since the rate cut at the beginning of the month the more…

Toward the mountaintop, inch by inch

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro keeps recouping its losses and has already recovered to the levels seen before the ECB’s rate decision. 1.3500 had been broken by the beginning of the EU session, after which bulls wanted to take the pair higher, but were stopped at 1.3540. The bears are retreating, albeit gradually. To surrender there should be more solid reasons and there hardly was any yesterday. In the meantime, stock markets were making their way up for the most part of the day. At the beginning of trade S&P 500 hit 1800 and Dow broke above 16000, but then players decided to start more…

Central banks’ games

By GG Analyst in Reviews 0 Comment

EUR/USD

Concluding from the recent speech of Janet Yellen, the new chairman of the Fed promises to be even milder than Bernanke. In the comments, prepared for today’s report to the Senate Committee, she says that yet the Fed has got lots of various means to support the economy and the labour market, which are now far from the potential rates. Upon the whole she believes that now it is necessary to provide as many incentives for growth as possible in order to return to the normal mode of the monetary policy. In this case we see a striking difference between the more…

Denying to the last

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s a funny thing: already today the debt ceiling negotiations should come to the end otherwise default will occur already tomorrow, but for all that the markets manage to see the positive in the news from Washington. They are merely denying the problem. From the psychological point of view, the markets are just at the first stage – denial – and they still have to go through anger, bargaining, depression and acceptance. Yet, the other stages will scarcely be favourable for stock indices and the US dollar. Now the most probable way out is seen in another compromise with the debt more…

Great expectations and grim reality

By GG Analyst in Reviews 0 Comment

EUR/USD

The negotiations on Capitol Hill have stalled. The traders, who hoped that an agreement would have been reached by Monday, are now utterly disappointed, which results in a stock market correction after the heavy growth at the end of the previous week. See how phantom the reasons for recent growth of stocks have been – it’s been based only on the suppositions of progress, without any real evidence of such. So don’t be surprised if in the coming hours you will be a witness of no less impressive retracements. The politics is quite a phantom and unsteady thing. The economic stats more…