USD again gives up key levels to its rivals

By GG Analyst in Reviews 0 Comment

EUR/USD

As befits a central banker, Bernanke made it clear that his previous remarks were understood wrongly , which immediately put USD under pressure. What started as small profit taking after hitting three-year highs by the dollar index took a turn for full-fledged selling of the US currency. Yesterday the Fed’s head noted that the US economy needed the soft and stimulating policy to be preserved in the foreseeable future. These words gave rise to a rally. Soon it got additional support on triggering of short positions. The move was so violent that EURUSD hit 1.32 after the daily low of 1.2762 more…

Bad news from the USA does good to the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

CBs are again playing giveaway. Draghi has repeated that the Bank is ready to help the EU economy before French Assemblée Nationale. He also specified that supporting of the economy by all the measures ,”which the ECB will see proper”, doesn’t contradict the price stability mandate. It’s interesting to see how the approach has changed – before Draghi the ECB refused to do anything that wasn’t in complete agreement with the mandate. In our opinion, the reason for that is in a better situation in Germany, which doesn’t suffer that strong growth which was a couple of years ago, with a more…

The USA is on its own

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro is being gradually sold. At the same time stock markets are not the best benchmark as the main cause of the pressure on the single currency consists in the renewed fears for the sovereign debt crisis. Peripheral bond yields are again on the rise due to the increasing problems in the banking sector, which is under the threat of toughening of capital adequacy rules. Yesterday’s comments of Draghi, who said that the ECB was far from completing the cycle of the soft monetary policy. It was quite a logical statement for the head of the CB of the region more…

Too big to grow

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex’s reaction to Bernanke’s commentary was the strongest, yet the market was the first to come to senses after the violent movement. Yesterday since the end of the US trading session and all through the Asian one the dollar index was retracing. Friday is expected to be quiet as no important news is scheduled for today. Among yesterday’s releases the German Flash Manufacturing PMI, which reflected the continuing weakening, deserves attention. Now the euro zone and Germany, a former locomotive, show roughly the same performance. Though, Germany’s Services PMI proved to exceed expectations, returning to the growth zone after two months more…

Expected unexpectedness

By GG Analyst in Reviews 0 Comment

EUR/USD

At the press-conference last evening Bernanke announced that the Fed would probably start the stimulus rollback later this year. Let’s be honest. Was there anyone in the market who didn’t believe that this scenario was possible? Numerous surveys show that the main question is not if the rollback will be held this year, but when. The market reaction was definite: to purchase dollars. The single currency was pushed down by almost 1.5 figures from above 1.3415 to  1.3260. Moreover, by the beginning of trading in Europe selling had begun again and by now the currency has hit a daily low at more…