Divergence of the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stocks continued their upsurge yesterday, Dow Jones grew by 0.3%, having recouped the previous decline and is now just 0.3% from its historic high. To some extent optimism in the stock markets (and simultaneous selling of the dollar) can be justified by Janet Yellen’s promise to continue stimulation of the economy, which functions poorer than its potential allows. This optimism boosts purchases of commonly-known risk-sensitive currencies, including the euro. EURUSD formally remains in the downtrend and on Friday the decline seemed to be even faster. However, as we warned, the level of 1.30 is too important both for bulls more…

Italy pushed down the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

Last night we learnt the preliminary results of elections in Italy. According to these data, there’s no clear winner who would form the government on his own. As is often the case in the complicated economic situation, populism is what electors, exhausted by economic slowdown and austerity,  particularly favour. Concerns that the government can be formed by the anti-European coalition oppressed the markets yesterday evening. The euro quickly lost all its polish, depreciating against most of its counterparts. The systematic selling took EURUSD from the intraday high of 1.3318 to the daily low of 1.3047. Last week we mentioned it many more…

A respite after the slaughter

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency which was one of the most stable currencies since the beginning of the year, was falling against a great number of markets yesterday. It’s not all about increase in demand for safe assets and the dollar, which followed the Fed’s meeting minutes. The euro is influenced by inner factors. Yesterday’s preliminary stats on the February PMI failed to meet the expectations. The Services PMI declined from 55.7 to 54.1 against the forecasted decrease to 55.5. The Manufacturing PMI seems to have resumed growing (now the index is at 50.1 whereas 50.0 would have shown retention of the rate more…

Again at the crossroads

By GG Analyst in Reviews 0 Comment

EUR/USD

Monday didn’t abound in news, so EURUSD closed the day just where it started it, i.e. remained at 1.3350. The movements during the day were petty and of speculative nature and therefore can be ignored. The only stats deserving attention yesterday were those on the EU current account, which in December shrank a bit more than expected to 13.9bln against 15.9 a month before and the forecasted decline to 15.3. Anyway, with a broader view of things last year seems to have been quite favourable regarding the euro zone international trade. It was largely due to depreciation of the single currency more…

The bears attack

By GG Analyst in Reviews 0 Comment

EUR/USD

Triggering of stop-orders in EURUSD drove the pair to 1.3519 yesterday, but at these levels sellers entered the game. As a result, the daily close was slightly negative, 1.3450, but now we can observe some growth in the dollar, which pushed the rates even lower, to 1.34. In the charts we see that yesterday’s reversal is absolutely identical to the situation on February 7. The same downward wave took the pair from 1.357 down to 1.335. If this time the decline is of the same scale, we may see EURUSD somewhere between 1.3250 and 1.3270. Yesterday’s upsurge of the single currency more…