EUR short-squeeze is wider, but weaker

By GG Analyst in Reviews 0 Comment

EUR/USD

The EUR short-squeeze continued yesterday, but this time on a much larger scale. The single currency was appreciating not only against the dollar, but also against the yen and the Aussie. Yesterday we mentioned that this run of events was quite possible. However, we repeat it again – it is too early to speak about a reversal in the pair. The current movement should be in no way regarded as the beginning of a reversal. The spikes two days ago and yesterday were quickly sold off. The attempt to rise from 1.2750 to 1.2775 was very short. Then followed the drop more…

Forex celebrates Obama’s victory

By GG Analyst in Reviews 0 Comment

EUR/USD

The winner is Obama. It’s interesting to see in what succession the markets reacted to the news. Oil shot up higher than other markets yesterday. American WTI flew up to $3.8. The US stock exchanges returned to the area of local highs. And Forex patiently waited for the final election results. In EURUSD the reaction to Obama’s victory was seen only at night. The pair rose from 1.2780 by approximately a big figure. The market reaction comes up to our expectations. Obama’s reelection is good news for risky assets and commodities and bad news for the dollar. Unfortunately, it’s too early more…

Election results and Forex

By GG Analyst in Reviews 0 Comment

EUR/USD

This week is fraught with risks of uncertainty. And it is not all about the elections in America. We shouldn’t forget about China. According to the surveys now Obama is in the lead, but his advantage makes only about 0.7%. Thus, the election results are even more unpredictable than Friday’s employment statistics. Let’s focus on the possible reaction of the markets in each of the two  potential outcomes of the elections. In our opinion, Romney’s victory will be in favour of the dollar, but will increase the pressure on the stock exchanges. Obama’s reelection will tell favourably on the stock indices. more…

Payrolls: even more unpredictable this time

By GG Analyst in Reviews 0 Comment

EUR/USD

The analysts were cautious in their forecasts about ADP’s employment statistics. The company revised not only the calculation method, but also the previous data. As a result, the figures for September have been raised, now pointing to the employment growth of 114K in the private sector. Besides, the fresh October figures now indicate an increase by 158K. Traders couldn’t but take advantage of the improvement, which seems to be especially obvious against the background of the figures for August when growth made just 82K. Yet, the good news about the labour market doesn’t end here. The unemployment claims have decreased more more…

Thirst for risk

By GG Analyst in Reviews 0 Comment

EUR/USD

American exchanges will be open today. The markets look forward to this, since today is the last day of the month, so most funds will be reshuffling their portfolios. Very often it spills over into profit-taking, it means into the move opposite to that observed all through the month. In October the stock market has generally been on the decline. Following this logic, the US stock futures are growing now at the beginning of the day. Yesterday the single currency was appreciating, even despite rather poor news from Europe. EURUSD failed to test the level of 1.30, however the growth from more…