Autumn seems to sneak in a bit earlier

By GG Analyst in Reviews 0 Comment

EUR/USD

In one of our reviews last week we said that the markets could grow till the beginning of autumn. Yet now there is a feeling that autumn is right on the threshold. The optimism of stock market players, which has been growing after the recent release of FOMC’s minutes, reached its zenith yesterday. It’s surprising that the markets supposed to deal with a chain of favourable economic reports and didn’t take into account that the Fed could revise its plans for easing the policy in September. Beige Book published yesterday once again proved that things are getting better in the USA. more…

Good that Draghi won’t attend Jackson Hole symposium

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s amazing that the news about the absence of Draghi and other members of the governing board at the symposium in Jackson Hole should give so much help to the single currency. Anyway, there is a core of sense. Draghi is said to be busy drawing up a plan of Europe’s bailout. But being honest, most of the time is of course spent on searching for the compromise and arguments in favour of further expanding of the ECB’s balance sheet. It is very likely that Draghi and his followers are trying to persuade that it’s not the best variant to reply more…

ECB’s bazooka should be more powerful than Fed’s one

By GG Analyst in Reviews 0 Comment

EUR/USD

Though neither the Fed nor the ECB have decided on whether to expand their balance sheets or not, the markets already see it as a settled thing for both the CBs. Yet, Europe needs asset purchases much more than the USA. Provided the ECB and the Fed followed the same rules to help their economies (or are ruled by same people), we would see a much bigger decline in the euro. For comparison, the EU economy has shrunk by 0.4% against the level of the previous year, while the US economy demonstrates a 2.2% growth. The unemployment rate in the euro more…

Within the channel till fresh news releases

By GG Analyst in Reviews 0 Comment

EUR/USD

Friday passed under the sign of correction, during which the dollar recouped some of the losses it had suffered in the antirally earlier in the week. From the technical viewpoint, over the last five weeks the pair has been in the uptrend. The major issue the markets are concerned about has been “frozen” till September, though already at the end of this week the attention of the markets will be riveted on Bernnake’s speech. In fact, behind all this technical stuff unfairly little attention is paid to the current fundamental news. According to the PMI reports the production has been on more…

Correction after the cyclic maximum

By GG Analyst in Reviews 0 Comment

EUR/USD

On Thursday the markets again performed out of concord. The single currency grew and the stock exchanges, on the contrary, depreciated, unveiling the unsteadiness of the four-year highs hit earlier this week. The mood of stock exchanges was spoilt by the statements of the Fed’s members, who split over the future of the incentives. Charles Evans, a traditional dove, called for the further stimulation of the economy. James Bullard, who actually belongs neither to hawks nor to doves, on the contrary asserted that there was no urgent need in incentives. The important thing here is not so much the comments as more…