QE, Twist or nothing?

By GG Analyst in Reviews 0 Comment

EUR/USD

Those, who ventured to stake on risk yesterday morning, must have been generously rewarded in the evening. Though at the end of Monday’s trading the single currency sank to 1.2550, already yesterday evening it found enough strength to test the 1.27 level. Today’s quotes remain close to this mark. The Fed’s meeting is ahead. In the last few days it has been widely rumoured that the FOMC will react to the weak market data with another round of Operation Twist. The major advantage of such steps over the additional purchases consists in the absence of any inflationary aftereffects. The fact that more…

A flicker of hope in the depths of despair

By GG Analyst in Reviews 0 Comment

EUR/USD

Many traders know very well that May is not the best month for buying stocks, and this year was not an exception. Yet the most interesting thing is that the crisis peaked in May not only because of the economic slowdown, but also as a result of political uncertainty. The biggest mystery surrounded Greek elections and their outcome. Given their preference to the parties supporting the EU membership and bailout Greeks have made it clear that they don’t want to be Europe’s outcasts.  Many commentators still keep estimating how favourable the EU disintegration could be in the current situation, but it more…

Poor payrolls revive Fed’s idea of QE

By GG Analyst in Reviews 0 Comment

EUR/USD

Since payroll figures proved to be poor, the likelihood of further QE has significantly grown.  The US non-farm employment has gone up by 69K. As has already been mentioned, the decline in economic and employment growth is quite typical of summer months. In this connection, many economists expected that May would be a weak month, forecasting the employment growth at 150K against the average half-yearly figure of 200K. However, the reality turned out to be even harder than this. The actual figures for May-June have shown employment growth just at 69K. Meanwhile, the data for April have been revised down to more…

EUR is heading for the lower depths, but who will have the courage to buy it?

By GG Analyst in Reviews 0 Comment

EUR/USD

The ECB calls for politicians to develop a new investment guarantee mechanism at the EU-wide level in order to eliminate an adverse effect, which capital shifts within the region are now producing on some banks. In their turn, the politicians keep emphasizing that the ECB has to take a more active part in bailing out of the troubled countries. While chief officials are shifting responsibility on each other and dictating others what to do, the EU countries keep falling on the domino principle, and the single currency is hitting new lows against the dollar and yen. Yesterday there was an attempt more…

Hope dwindles

By GG Analyst in Reviews 0 Comment

EUR/USD

As seen from yesterday’s rates, hopes that Spain would do without help of the EU were gradually melting away throughout the day. The pair neither bounced on bad news nor flew on an avalanche of triggering stop-orders. However, having started the day from 1.25, the euro/dollar closed it at 1.2370. Again it becomes evident that the single currency suffers the heaviest pressure at trading in America, while sessions in Asia and Europe go on by far more quietly. Yet, even then we don’t observe any significant corrections in the pair. The weak Italian auction with a low bid-to-cover ratio of 1.4 more…