Cyprus as a model for further “bailouts”

By GG Analyst in Reviews 0 Comment

EUR/USD

The market optimism on the Cyprus deal was supported only by the hopes that that scenario would never happen again. And we warned from the very beginning that, quite the opposite, the bailout of this small island could serve as an example for the further bailouts (if they will be needed). We warned, but couldn’t even suppose that it would be avowed by one of the high-rank officials of the EU so soon. It was done yesterday by the Dutch Minister of Finance and President of the Eurogroup Jeroen Dijsselbloem. The euro-optimists once again were punished. EURUSD sank by more than more…

Trim your sails to the wind

By GG Analyst in Reviews 0 Comment

EUR/USD

But for comments of Bundesbank President Jens Weidmann, the single currency would have continued to slip down yesterday. His words that the current policy of the ECB poses a threat to the monetary policy of the region have triggered a short rally in EURUSD. From the daily low of 1.2990, hit at the beginning  of trades in Europe, the pair grew to 1.3074. However, this mini-rally proved to be short-lived. Very soon eager selling brought the pair back to 1.3020. Actually, all these moves are trifle ones, but there is one fundamental moment. Today we will probably see breaking of the more…

Apart in happiness, together in grief

By GG Analyst in Reviews 0 Comment

EUR/USD

The newspapers are still savouring the Dow Jones high and nearly record levels of S&P 500, but in our opinion it’s worth paying attention to the risks now. The divergence between the stock markets and Oil, that we spoke about at the beginning of the week, also exists between the euro and the markets, albeit to a lesser extent. Generally speaking, the stock markets were swelling like a bubble thanks to cheap money from the Fed and CBs of other developed countries. Yet it doesn’t mean that  correction in the stock exchanges will necessarily make the euro grow. Quite the opposite. more…

Fed’s meeting minutes triggered selling in the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed’s meeting minutes somewhat cooled the markets’ adour about the further QE. From them it became clear that some members of the FOMC plan to table revision of  the monthly  size of bond purchases already in March. Probably, March is not the best time since it may start with automatic cuts of government spending in the USA. The battle for the fiscal cliff was won by Obama, rescheduling of the debt ceiling discussion is also his victory. Yet, no matter for how long a deadline is extended, dealing with these burning issues cannot be escaped after all. All this again more…

Stock market optimism is in Forex’s favour

By GG Analyst in Reviews 0 Comment

EUR/USD

One of the clearest signs of optimism in business is increase in M&A deals. The companies, which have access to relatively cheap loans and which preferred not to invest when the situation was pretty much uncertain, now feel that the world is changing. It seems that they started to open their sacks with cash more and more eagerly. Of course, we are talking about strong companies as the crisis has left either winners or firms with good brands but less favourable access to money. The latter are being hunted with enthusiasm now. News about increase in activity of this kind gives more…