Fixing of euro ‘shorts’ may last longer

By GG Analyst in Reviews 0 Comment

EUR/USD

Frankly speaking, it is hard to believe that behind yesterday’s surge in the euro there was just a phrase of ECB’s Nowotny about the intention of ESM to apply for a banking license. First of all, don’t forget that this takes place in Europe, which means that there can be a dozen of different opinions on this issue and also some cunning term condition from Germany. In addition, even if it happens, all the possible deadlines will be already missed. The funniest thing is that the Constitutional Court of Germany hasn’t decided yet if ESM’s existence is in line with the more…

EUR rallies out of the abyss of investor pessimism

By GG Analyst in Reviews 0 Comment

EUR/USD

The EU leaders greatly surprised the markets this morning. The single currency went through the strongest rally since the beginning of the year. It rose straight by 1.5% and in less than 2 hours broke the level of 1.26 on the publication of the end-of-summit decisions. But let’s relate the facts as they actually happened. The pessimism reached its heights yesterday afternoon when a flood of bad news befell the market. It became known that Spain won’t be able to finance itself for long with the current yields. The mistrust of the markets is eloquently confirmed by the yield of the more…

March to new lows

By GG Analyst in Reviews 0 Comment

EUR/USD

Let’s have a bit of practice in the political logic. Germany asserts that without the fiscal compact it’s pointless to speak about any large-scale support measures in regard to the suffering countries. But the other day these very suffering countries suggested a closer integration than that pointed out by Germany. As is known, Merkel turned down this run of events: “only over my dead body”. What conclusion can we draw up? Only one – Germany is not at all eager to give any help, doesn’t aim at closer integration and doesn’t stand up for the preservation of the eurozone in its more…

QE, Twist or nothing?

By GG Analyst in Reviews 0 Comment

EUR/USD

Those, who ventured to stake on risk yesterday morning, must have been generously rewarded in the evening. Though at the end of Monday’s trading the single currency sank to 1.2550, already yesterday evening it found enough strength to test the 1.27 level. Today’s quotes remain close to this mark. The Fed’s meeting is ahead. In the last few days it has been widely rumoured that the FOMC will react to the weak market data with another round of Operation Twist. The major advantage of such steps over the additional purchases consists in the absence of any inflationary aftereffects. The fact that more…

And still the risk demand is growing

By GG Analyst in Reviews 0 Comment

EUR/USD

Despite the obvious improvement in the general news background, the single currency faced sales in the second half of the day yesterday. Formally it was not without reason. But the newly elected Greek government still needs to show its will to take further austerity measures. The expectations that Germany would take a less tough stance under the pressure of other G20 leaders also didn’t manage to develop into something tangible yesterday. While formerly the markets got disappointed in the results of the EU summits, now they get disappointed with the summits held by the leaders of the most influential countries of more…