Perhaps markets have already got tired, eh?

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday afternoon the euro continued storming new peaks once the dollar had weakened after Fed’s allusions to the further QE. At some point the single currency rose to 1.3180, but climbed down by the end of the day on the stock market correction. It is noteworthy that stocks of financial companies suffered a greater decline yesterday than any other groups. They are the first to be influenced by changing sentiments. Now the markets seem to be tired of the vigorous upward march, observed from mid-December. If the markets show a decline or stop growing, it may again bring market participants to more…

Fed’s decision to keep zero-rates until the end of 2014 triggers a carry trade rally

By GG Analyst in Reviews 0 Comment

EUR/USD

The Federal Reserve surprised the markets with the promise to keep the rates at zero until the end of 2014. Before that the Fed had claimed to keep the rates there until mid 2013. This news sparked off a rally in the markets. The dollar fell across the entire spectrum of assets as well as against other major currencies. The euro closed the day above 1.31, where it keeps trading now. Besides, the rally in the stock markets is still at full tilt – it has brought S&P to the end-July levels, which the stock markets have unsuccessfully tried to break more…

So Far No Certainty for Greece– Euro Falls

By GG Analyst in Reviews 0 Comment

EUR/USD

As expected, negotiations over the Greek debt-restructuring have proved to be not an easy matter. As has been reported, there isn’t any certain agreement on the issue so far. At the opening of the week the euro fell to 1.2878 against Friday’s closing level of 1.2930. The deteriorating economic environment now requires more than a 50% haircut from private investors. Lenders, in their turn, claim that they offer the maximum of what they can give. Not long ago this weekend was considered to be the deadline for the agreement to be reached. But as happened many times before, the policymakers have more…

Euro Burst through the Channel, but Yet Has to Struggle to Keep its Positions

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro kept rising on Thursday. Since the start of the week it has already gone up to 1.2950 from the desperate 1.2620. In general, the positive sentiment was supported by well-bid auctions held in the countries enjoying a special interest of investors. Germany, Spain, France and EFSF as well were checking the market appetite for their securities. Demand proved high and yields – lower than during the similar auctions at the end of the year. But it would be really interesting to know what role the ECB played in these cases.  Interestingly, the EUR/USD was moving up almost invariably, which more…

Finally European Leaders Have Turned Their Eyes on Labour Market Issues

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency fell to 1.2662 yesterday, which is 5 points below the previous local minimum. These sales were caused by a number of reasons. First, data on annual estimates of GDP growth in Germany were released yesterday. Although they coincided with the forecast of growth by 3.0%, a more detailed statistical analysis has suggested that German GDP declined by about 0.2%in the fourth quarter. This signal is not a favourable one, as Germany was often the engine of growth. In addition, there came out the final data on Eurozone GDP for the third quarter. The statistics were unexpectedly revised lower. more…