The news is getting better day by day

By GG Analyst in Reviews 0 Comment

EUR/USD

The stock markets were trading sideways while Forex faced a slight retracement yesterday. The single currency was depreciating against the dollar and travelled the way from 1.3116 down to 1.3030.This decline is better treated as a good opportunity for those who missed the uptrend to buy the euro cheaper. The impressive growth of the euro in the previous week or two (depending on the pair you are considering) required a retracement and profit-taking and that is what we saw yesterday. Though, of course, some newsfeeds contained messages which attributed that performance to the concerns around Spain’s unwillingness to accept a bailout more…

Markets take a respite?

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar formed a double top when trying to break through 1.3170 for the second time in the last two trading days. Is it the start of a reversal? Well, probably, but most likely it’s just profit-taking after the significant growth. From the lows of July the single currency has risen against the dollar by 11 big figures. Moreover, the move from 1.26 to 1.31 has happened just within six trading days. Of course, after such a rally the market needs to come round. The caution in relation to the further demand for risk comes as a result of the active more…

Looking through the glass or September against May

By GG Analyst in Reviews 0 Comment

EUR/USD

Over just one day the single currency crossed 1.30 and made a fresh advance to 1.31.  Now trading is at 1.3120, and the daily high of Friday was around 1.3170. Looking at the current rates, it’s hard to believe that only 2 weeks ago bulls and bears were fighting for 1.25. The double whammy, from Draghi and Bernanke, made the dollar retreat on all fronts. It’s remarkable that this should happen against the ongoing issues in the peripheral part of Euro Zone. The troika is going to release its report on the Greek affairs only in October, thus deferring the verdict more…

Fed and ECB: a one-two punch for the dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke surpassed the optimistic expectations of the markets. The FOMC announced the beginning of additional purchases of the mortgage-backed securities. For this purpose the CB is going to spend $40bln each month. Moreover, we shouldn’t forget about the ongoing Operation Twist, which presupposes buying of long-term securities by means of selling the equal amount of short-term ones. The monthly volume of such transactions makes 45bln. All this is done to reduce the long-term interest rates. Besides, the period during which the Fed will be obliged to keep the interest rates low has been extended to mid 2015. Thus, in the interval more…

Instead of launching QE3 FOMC may just indicate its parameters

By GG Analyst in Reviews 0 Comment

EUR/USD

Commonly the opinions of markets and economists coincide. Eventually, the latter give their recommendations to traders, who thereafter shape the market. But sometimes it is different and now is just the case.  On drawing near the FOMC’s conference, economists feel more and more eager to announce the parameters of new purchases. Yet, many believe that these large-scale purchases won’t take place in September.  We’ve already mentioned that the current situation is not as bad as it was during the previous 2 launches of QE. It would be more correct to say that there exist many threats to the further growth, which more…