Holiday pessimism in Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s a funny thing – the market is teeming with moves in various directions. The EU currencies (EUR and GBP) suffered a lot yesterday. Oil is going down in price, while the stock market has grown just like other risky assets. No matter how illogical this move is, there are still some signs that the markets are getting back to reality. So, yesterday the single currency dropped down after the ECB’s revision of the EU economic growth outlook. Mr. Draghi was rather pessimistic in his comments: on average the European economy is forecasted to shrink by 0.3% in 2013. Yet, as more…

Republicans won’t give in without a struggle

By GG Analyst in Reviews 0 Comment

EUR/USD

Doctor House was right – everybody lies. This time those, who believed that it would be easy to agree on the fiscal cliff issue, proved to be mistaken. The good beginning of trades in stock exchanges on China’s agitation was ruined by poor news from the USA. The republicans refuse to support tax increases. They stick to the idea of further active economic stimulation, while Obama advocates spending cuts. We still believe that the middle way here consists in tax increases for the rich and preservation of some tax benefits. Yet republicans want deeper spending cuts on health care than Obama more…

False optimism

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the market didn’t hurry to stop a retracement. The single currency continued its upward trend against the dollar and hit a new local high at 1.28. Then, just like a day before, the pair moved off the maximums and took up a defensive position. Today we see systematic purchases in the pair, very cautious at the moment. But it can be just the beginning. We still believe that the euro’s attempts to recover this week resulted from the technical short-squeeze and retracement after the large-scale selling since the second half of October. Our opinion is confirmed by the fact that more…

Forex celebrates Obama’s victory

By GG Analyst in Reviews 0 Comment

EUR/USD

The winner is Obama. It’s interesting to see in what succession the markets reacted to the news. Oil shot up higher than other markets yesterday. American WTI flew up to $3.8. The US stock exchanges returned to the area of local highs. And Forex patiently waited for the final election results. In EURUSD the reaction to Obama’s victory was seen only at night. The pair rose from 1.2780 by approximately a big figure. The market reaction comes up to our expectations. Obama’s reelection is good news for risky assets and commodities and bad news for the dollar. Unfortunately, it’s too early more…

Politics and currency speculations

By GG Analyst in Reviews 0 Comment

EUR/USD

It was all so encouraging on Wednesday… The euro-traders repulsed the bears’ attack, got down to active buying of EURUSD at 1.2945 and in a couple of hours brought the pair to 1.30. It is of interest that by opening of trades in the USA the euro had been carefully “put” back at the starting point of the mini-rally. Thus, the 1.3020 mark proved to be a strong resistance. Formally the bulls took cover under two favourable reports on spending in Germany and France. But if we take a closer look at the reports, they are not that favourable. The German more…