Sudden demand for risk

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was purchased against the news yesterday. It means that the initial reaction to the poor ZEW quickly turned into purchases of the euro. As a result, the market is now consolidating between 1.3170-80, while a day ago it was close to 1.3040. Apparently, the market is focused on selling the dollar rather than on buying the euro. Indirectly risk demand was maintained by the recovery of markets after the drop a day before. Speaking about the German indicator of economic sentiment, in April it makes just 36.3 against the expected 41.5. It is a cyclic indicator and such more…

Bears gradually gain the upper hand

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro-bears got the upper hand. The risk-aversion in the markets didn’t pass by EURUSD, which sank to 1.3015 yesterday closer to the end of the active New-York session. The explosions at the Boston Marathon also had their share here. For now three people are reported dead and about a hundred injured, actually this is the first terror attack since September 2001. Now there are certain concerns that the blasts will be followed by a continuous reaction of the USA, of course at a smaller scale than the intrusion into Iraq, but anyway it is certain to arouse stronger militaristic sentiments more…

Bearish Gold market

By GG Analyst in Reviews 0 Comment

EUR/USD

Friday’s correction in the markets must have made many feel nervous: at some moment EURUSD sank down by a figure from the highs of the Asian session – to 1.3030. Anyway, by the end of the trading day the single currency had managed not only to recoup its losses, but also hit a new intraday high. The bulls managed to close the week above 1.31. Yet the bears got somewhat stronger already during today’s session in Asia. Almost the whole package of China’s statistics proved to have fallen short of expectations, which forced the markets  to hastily liquidate risky positions and more…

And again no news is good news for Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar keeps actively depreciating due to the renewed demand for risky assets. EURUSD is hitting local highs, growing for seven out of the last eight days. Yesterday’s high made 1.3138, afterwards the pair retraced, but still managed to remain above 1.31. As we see, the absence of important news is favourable for this pair. Yet, we shouldn’t forget that the biggest share in this rally belongs to the poor data on employment and manufacturing activity in the US. Earlier each time it ended with a sharp outflow of money from risky assets and with appreciation of the US currency. more…

EUR is under its 200-day MA due to new troubles at the periphery

By GG Analyst in Reviews 0 Comment

EUR/USD

Italy is trying to form a coalition government and this is a new problem for the euro. Yesterday the currency once again hit a fresh four-month low against the dollar on the news that the leader of the party which won last month’s elections, Bersani, promised to appoint Berlusconi as head of the committee for reforms. If you remember, the need for reforms was exactly the reason why Berlusconi had been forced to resign the post of the country’s prime-minister in 2011. This news and other statements about problems with creation of the coalition government caused much anxiety in the markets, more…