Unpredictability of Forex

By GG Analyst in Reviews 0 Comment

EUR/USD

Stock exchanges sighed with relief on the news that Obama and the republican leaders hope to avoid a government default. The recent messages point out that the best thing we can get now is an agreement on a short-term debt ceiling increase to gain time for negotiations. As we saw in the preceding three times, the farther the deadline was the farther the positions of the parties were. Now there are more incentives to look for a compromise to overcome the political crisis. But it is not our case. Thus, the US markets have grown by almost three percents from the more…

Keep calm and carry on

By GG Analyst in Reviews 0 Comment

EUR/USD

The pair is drifting within a very narrow channel, still leaving the gap of the beginning of the week unclosed. Yesterday during the Asian session it fell down to 1.3324, which is the lowest point of the week for now. Anyway, the pair managed to move off these lows and returned to the middle of the trading range – closer to 1.3350. It’s clearly seen that the market activity is dying down. More so, players for some reason don’t pay attention to economic statistics. Thus, yesterday’s economic sentiment for Germany and the eurozone proved to be better than forecasted – growth more…

Cautious European consumers

By GG Analyst in Reviews 0 Comment

EUR/USD

Syria is still hitting the newspaper headlines. Oil grew impressively pushed by the threat of a large-scale intrusion into this country and also by the forecasts of investment banks and hedge funds. Rates of Black Gold may rise even higher, to 125 in the coming days and to 150 if the regional conflict expands, in the opinion of Societe Generale. Anyway, outside the oil market this threat is hardly felt. Of course, the market looks a bit more jumpy than in the previous days, but this is only in comparison with the summer lull. EURUSD remains squeezed in the 1.3300-1.3400 corridor. more…

Impudent bulls and bears

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday bulls and bears were again measuring their strength against each other, trying to budge EURUSD. Either the parties were equally strong or they were not willing to continue the fight, but after a steep drop the pair in a while returned to the previous levels. Impertinence of bears showed itself when they intensified their pressure on the euro right after the release of relatively good news from Germany. The Ifo statistics indicated growth of the Business Climate Index to the highest level over the last 16 months and, therefore, exceeded expectations. In August the index has risen to 107.5 against more…

Non-US assets are getting more popular

By GG Analyst in Reviews 0 Comment

EUR/USD

The second half-year in the markets will apparently be different from the first one. Earlier this year we observed acceleration of the dollar together with the growth of the US stock markets. Now it seems that despite the time for the Fed to  start the stimulus rollback is getting nearer, the USD is depreciating against most of its rivals and the US exchanges lack buyers. Aren’t the US assets attractive when the Fed is so close to policy toughening? They ARE attractive, but not against oversold EU assets. According to an old observation, economic improvement in the USA is often half more…