Forex is still in stupor, but stocks and commodities are tumbling down

By GG Analyst in Reviews 0 Comment

EUR/USD

Corporate reports are disappointing. The analysts’ favourite company – Apple – has managed to increase its net profit by 24%, but still failed to surpass the market expectations. About 70% of S&P 500 corporations have already submitted their reports by now. More often, the profit rates prove to be better than forecasted, while the turnover goes beyond expectations. This happens when companies sell high margin products, however on a smaller scale than desired by market participants. This disappointing fact sets the US stock indices along with Asia going down. And altogether this results in a lower demand for risk. The single more…

Bailout of Spain – is it good or bad?

By GG Analyst in Reviews 0 Comment

EUR/USD

If we look at the headlines of the leading news agencies, it is absolutely unclear whether it is good or bad that Spain doesn’t ask for a bailout. Last week the speculations on the high expectations of Spain’s appeal for a bailout contributed to growth of the single currency against the dollar and gave rise to optimism in the markets. This morning the decline from 1.2950 to 1.29 again was attributed to the inevitability of Spain’s request for a bailout. For those who are tired of this fuss we’ll try to give an alternative explanation. EUR/USD is now balanced. The absence more…

Moving slowly along the edge of an abyss

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets still lack this domineering idea that would form the trend in one or the other direction. Though volatility now is higher than in late August, many markets make no headway just like in those times. But then traders had an excuse – “big money” was on summer vacations and there were no ideas at all. Now the situation for EUR/USD is balanced. Each currency in the pair enjoys modest good news and expects high-risk events in the future. Thus, this week we heard about the growth of industrial production in Europe, increase in German exports and a rise in more…

Market Mysticism

By GG Analyst in Reviews 0 Comment

EUR/USD

The famous market commentator, Mark Hulbert, has written a warning article, where he pointed out that yesterday’s decline of the American exchanges could be the start of a fundamental reversal. As an example he cited the fact that the bullish market of 2000s came into existence right on September 9, 2002. And the decline of 2007 started on October 9. It is creepy to think about the strict periodicity of these events – exactly 5 years. And it’s been just 5 years since 2007. On the one hand, the American markets have enough space for a fall, as they are rather more…

Mysterious reaction to employment statistics

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment releases are always very informative, this is why commentators very often not only make discrepant forecasts, but also give discrepant interpretation of the results. This time the situation is even more interesting. The two major indexes indicated opposite trends. Actual payrolls coincided with the forecasts, showing the employment increase by 114K. It’s remarkable that together with the serious growth, the data for the previous two months were also revised. The seemingly poor August figures were revised from 96K up to 142K and in July, as it turned out, there was a dramatic growth by 181K. Anyway, this quick more…