And again no news is good news for Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar keeps actively depreciating due to the renewed demand for risky assets. EURUSD is hitting local highs, growing for seven out of the last eight days. Yesterday’s high made 1.3138, afterwards the pair retraced, but still managed to remain above 1.31. As we see, the absence of important news is favourable for this pair. Yet, we shouldn’t forget that the biggest share in this rally belongs to the poor data on employment and manufacturing activity in the US. Earlier each time it ended with a sharp outflow of money from risky assets and with appreciation of the US currency. more…

Forex wild dancing

By GG Analyst in Reviews 0 Comment

EUR/USD

It was a nervous and busy day yesterday. The single currency was yielding to the pressure put by the dollar demand. Here we observe quite a strange correlation and would like to enlarge on it. The large-scale selling of the yen stirred all the crosses with it, which in its turn forced market players to take their profits and switched to the liquid assets like dollars. This is where the decline of the euro by the beginning of the EU session came from. Further the initial decline was gradually offset. But still the pair hadn’t managed to recover fully by the more…

The BOJ shifts goals

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s a big day for the single currency today. Since Draghi took up the post as the ECB’s head the euro has become much more volatile during press-conferences after the bank’s meetings. It’s mainly due to the fact that Draghi actively employs non-traditional means to help the suffering economy of the eurozone instead of sticking to the formal approach of his predecessor Trichet, who generally strived to maintain inflation. Besides, Mr Draghi’s forecasts prove to be much more precise. For instance, he promises that the EU economy will turn to growth in the second half-year. Judging by the statistics, this acceleration more…

EUR is under its 200-day MA due to new troubles at the periphery

By GG Analyst in Reviews 0 Comment

EUR/USD

Italy is trying to form a coalition government and this is a new problem for the euro. Yesterday the currency once again hit a fresh four-month low against the dollar on the news that the leader of the party which won last month’s elections, Bersani, promised to appoint Berlusconi as head of the committee for reforms. If you remember, the need for reforms was exactly the reason why Berlusconi had been forced to resign the post of the country’s prime-minister in 2011. This news and other statements about problems with creation of the coalition government caused much anxiety in the markets, more…

Apart in happiness, together in grief

By GG Analyst in Reviews 0 Comment

EUR/USD

The newspapers are still savouring the Dow Jones high and nearly record levels of S&P 500, but in our opinion it’s worth paying attention to the risks now. The divergence between the stock markets and Oil, that we spoke about at the beginning of the week, also exists between the euro and the markets, albeit to a lesser extent. Generally speaking, the stock markets were swelling like a bubble thanks to cheap money from the Fed and CBs of other developed countries. Yet it doesn’t mean that  correction in the stock exchanges will necessarily make the euro grow. Quite the opposite. more…