USD eases pressure

By GG Analyst in Reviews 0 Comment

EUR/USD

Last week ended with a slight appreciation of the dollar. But this growth wasn’t enough to make up the losses, suffered earlier that week because of absence of a sound reason. This week players seem to be willing to continue locking in profits in the US assets. The dollar and stock indices are falling simultaneously. It is remarkable that S&P 500 has gone below the local low of August and is at risk of getting to the highs of early March – mid May. These levels (near 1870) can become quite a good support just the same way they served as more…

USD hits fresh highs

By GG Analyst in Reviews 0 Comment

EUR/USD

We were right – Germany is not the entire eurozone. Its price stability hasn’t helped to keep the rates for the whole region unchanged. According to Eurostat’s preliminary inflation estimate, published yesterday, the annual inflation rate in September fell to 0.3%. It corresponds to the rates expected at the beginning of the week, but after the reassuring German statistics traders have already managed to build retention of this index at 0.4% into their strategies. This situation intensifies pressure on the ECB, urging the latter to announce the beginning of the bond buying programme. On speculations that it will happen already this more…

Technical analysis highlights a possibility of short-term correction

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is no longer as sensitive to Draghi’s comments as before. Yesterday he expressed readiness to expand incentives, including non-traditional measures. However, the markets don’t take these words as a threat now as Draghi’s under increasing pressure of Bundesbank and the central banks of other core countries. Thus, the reaction to Draghi’s rhetoric was quickly exhausted. The pair dropped down to 1.2816 (a new high for more than a year). The pair remains oversold. But meanwhile its current position is explained by fundamental factors. So short-term traders can only rely on a quick pullback within the range of the more…

Germany can’t save everyone

By GG Analyst in Reviews 0 Comment

EUR/USD

Italy is again suffering recession. It became obvious after yesterday’s release of the Prelim PMI data for the second quarter. The statistics indicated the economic slowdown by 0.2% in 2Q after the decline by 0.1% in 1Q. Actually, over the last three years Italy reported only one quarter of growth – the last quarter of 2013. All the rest of the time the economy was suffering sluggish weakening. Even some decrease in the unemployment rate since the beginning of the year doesn’t save the situation. 12.3% is still too high to rely on the growth of consumer activity. Even the foreign more…

USD’s attack on EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was depreciating all day long yesterday. The pair managed to stop its decline only close to 1.3520. Now trading is held about 10 pips above this local low. Despite the fact that the considerable part of the decline occurred after Yellen’s speech before the Congress on Tuesday, it is hard to find connection between these events as other currencies don’t show such dynamics. The cable, the Aussie and the yen suffered some losses yesterday and the Loonie didn’t manage to grow. The reason for the pressure put on the euro is seen in the policy easing in the more…