Rise till fall comes

By GG Analyst in Reviews 0 Comment

EUR/USD

The minutes of FOMC’s meeting on July 31 – August 1 had more specifics about them than usual. As has been noted, the Fed is prepared to launch the programme of economic incentives if the figures remain that poor. Such news certainly filled the markets, especially currency ones, with enthusiasm. The risk-sensitive EUR/USD grew from 1.2470 to 1.2530 within just 3 hours. It’s worth mentioning that already before the release, during the day, the euro had been in good demand, cementing its positions above the previous highs. At the moment the single currency is trading close to the seven-week highs, near more…

EUR stays up thanks to the overall positive, not improvement of EU affairs

By GG Analyst in Reviews 0 Comment

EUR/USD

On Wednesday morning the markets were rather quiet, preferring to take profits after hitting fresh local highs. However, already in the afternoon the attempts to reach new highs ended with success. This night the S&P futures rose to 1403 after closing of the American session. It’s not the first day we see the following picture: American investors eagerly buy risky assets, while during the Asian and European sessions there dominates a cautious or defensive trading. Such behaviour is directly connected with the general economic performance and news coming from the region. Yesterday Germany once again demonstrated a perfect level of trade more…

Short covering in EUR before Bernanke’s speech

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was on the decline yesterday morning, but the news from the USA once again reminded us that the situation across the Atlantic is also rather gloomy. The pressure over the euro has been provoking the change of the interest rate differential after the ECB cut the rate down to 0.75% at the beginning of the month. That made the euro one of the weakest currencies, forcing it to fall against most of its competitors. Most likely, the decline in the euro/dollar from 1.2260 down to 1.2175 in the morning hours yesterday was caused not so much by the more…

Trying to ride the tide

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency dropped below 1.25 for the first time in two weeks. Formally, the worsening of market sentiments was caused by the audacity of the Greek coalition. Many expected that the “pro-european” winning parties would support the austerity policy, imposed by the EU, but instead the Greeks decided to ride the wave. This wave was heaved by France’s new President Hollande and soon was supported by the Prime Ministers of Italy and Spain. We are talking about concentration on the growth instead of the austerity. Yesterday the Greek parliament eagerly discussed the postponement of the budget consolidation for 2 more…

Back to 2009?

By GG Analyst in Reviews 0 Comment

EUR/USD

The miracle that was awaited by many hasn’t happen. The utterly poor EU Prelim PMI figures that came in yesterday morning deeply upset the market participants. Yet unfortunately it was not the only bad news of the day.  According to the Markit PMI data for Germany, the affairs of the local manufacturers are now at their worst since summer 2009. The preliminary PMI figure for June dropped down to just 44.7. France and Euro-Zone in general feel a bit better then forecasted. But we believe that they won’t be able to show better dynamics than Germany for any significant space of more…