Expected unexpectedness

By GG Analyst in Reviews 0 Comment

EUR/USD

At the press-conference last evening Bernanke announced that the Fed would probably start the stimulus rollback later this year. Let’s be honest. Was there anyone in the market who didn’t believe that this scenario was possible? Numerous surveys show that the main question is not if the rollback will be held this year, but when. The market reaction was definite: to purchase dollars. The single currency was pushed down by almost 1.5 figures from above 1.3415 to  1.3260. Moreover, by the beginning of trading in Europe selling had begun again and by now the currency has hit a daily low at more…

Slight attempts to rise

By GG Analyst in Reviews 0 Comment

EUR/USD

The exchanges, especially the Japanese Nikkei, have slightly moved off yesterday’s lows, recovering from the heavy selling. Once again it supported such EU currencies as the euro and pound. Yesterday right after the release of the US statistics EURUSD rose to 1.2950, now it is trading a bit above 1.29. Our scenario of a grand downward reversal of the markets hasn’t developed yet, but it is obvious that there aren’t anything that would arouse growth. The fears, connected with the release of the EU preliminary PMI, haven’t realized as most of the published indices proved to be better than expected. The more…

Have patience

By GG Analyst in Reviews 0 Comment

EUR/USD

The failures in the first half of the day didn’t distress the euro. FOMC’s member Bullard made it clear that the Fed was not going to curtail the stimulation programme in the near future. Anyway, the market reaction was relatively reserved as the markets were waiting for today’s speech of Bernanke. In the meantime, the euro is consolidating above 1.29, which didn’t yield yesterday morning. And again growth of the single currency has been caused by the upward movement of stock exchanges instead of the positive environment in the euro zone. This growth will hardly be long-lasting. The US stock markets more…

British GDP surprised, will it be the same with the US one?

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday traders took advantage of the dollar’s weakness to sell the euro at a higher price. As we said, optimism in connection with higher certainty about the political situation in Italy proved to be short-lived. The rate cut expected next week is of much greater importance for the markets. But we shouldn’t also forget the factors which may force politicians to take this measure. They are contraction of business and consumer activity and decline of inflation. These factors combined made yesterday’s growth of EURUSD very unsteady. On the way to 1.31 sellers came into play and for a couple of hours more…

Easy come, easy go

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD suffered the biggest intraday drop since June 2010 – by about 1.5%. The pair fell from 1.32 down to 1.30, thus ruining all hopes for growth and getting back to the model of consecutive descending highs and lows, which set in at the end of the previous week. This massed selling was due to a combination of two factors at once. First, the markets felt pressure because of the rather poor corporate reports and concerns over the global economic growth. The latter arose due to the pessimistic outlook of the IMF. Then, the head of Bundesbank  and apparently one of more…