Good news does not always excite the market growth

By GG Analyst in Reviews 0 Comment

EUR/USD

EUR/USD has been falling since Friday and has lost almost two big figures over this time. The single currency is now worth $1.3080, which is a four-week low. Against our expectations the market did not wait for the publication of statistics on the US employment to start selling risky assets, including the euro. As a result, at the time the non-farm payrolls were released, the euro was already trading as high as 1.3125. The labour market statistics has come in almost as good as expected, showing the 227K increase in the number of jobs (we predicted 235K, while the general market more…

Euro’s holding at 1.32 despite the reduced risk demand

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro gained almost no momentum yesterday. Some factors offset other ones and, as a result, EUR/USD remained at 1.32. Yesterday markets saw a batch of PMI figures. Interestingly enough, statistics have again confirmed the old observation that recovery of the U.S. real economy happens 3-6 months earlier than that of the European one. Thus February’s PMI for the euro area was unexpectedly revised down to 48.8 against the pre-estimate of 49.4. The most depressing thing about this is that a month earlier the service sector displayed growth and the index figure made 50.4. In other words, in January the service more…

Markets hardly believe that the Greek saga is over and stay nervous

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency didn’t manage to show any significant dynamics yesterday. Despite the positive reaction of the market to the approval of a Greek bailout package, the euro sales broke out. But as there were no strong reasons to sell the euro, the downward movement didn’t get any support either. The euro got stuck between 1.32 and 1.33. But this concerns only EUR/USD. Against the Aussie, yen and pound, EUR feels much stronger. Risk demand manifests itself in the strengthening of equity markets and rise in the price of gold. Oil rides its own wave – geopolitics – but on the more…

The Greeks only dropped a hint about the agreement, but the euro jumped to 1.3250

By GG Analyst in Reviews 0 Comment

EUR/USD

Greek Prime Minister Lucas Papademos has signaled that he is close to reaching the agreement over further austerity measures with the three major parties of the country. The agreement was to be concluded on Tuesday evening, but the event was postponed to Wednesday. Nevertheless, the markets reacted very positively to this news. The single currency jumped from 1.31 to 1.3260. As we know, such sharp jumps are caused by the negative positioning against the euro. The abundance of short positions triggers bursts in the euro on any rumors. However, facts shouldn’t be overlooked either. Yesterday Destatis published very poor statistics on more…

January was a good month for risks, February will be different

By GG Analyst in Reviews 0 Comment

EUR/USD

Greece convinces us more and more that it is just one ‘formal’ step away from restructuring of the 200 billion euro debt to private investors. Now it is just the time for the country to focus on reforms that will lead it out of the downward spiral and ensure its solid growth and debt solvency in the future. Lenders demand serious pension reforms and higher workforce competitiveness. If all goes well, Greece will be granted the second aid package of 130 billion later in the week which will help it to avoid an uncontrollable default in March. The Greeks may promise more…