Will FOMC revise its plan to terminate QE in October?

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency keeps drifting near 1.2750, having no desire to fall and no strength to grow. The six-week decline of stock indices arouses more and more concern among the Fed’s officials. Though they don’t assert that this behaviour of the markets will make FOMC revise its plan to end QE in October, they still promise to consider it in the coming days. Rosengren, President of the Federal Reserve Bank of Boston, said that QE will be finished in October if nothing dramatic occurs. So now market participants are trying to make out how dramatic the recent sale, which lasted for more…

Weak Oil again supports USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the euro was under pressure due to another tide of demand for the dollar. The US currency again enjoys popularity in view of growing concerns about the oil price wars, unleashed by Saudi Arabia. The main player of OPEC agreed to lower the release price of oil for China, which entailed higher pressure on the global oil rates. For the most part, this policy of Arabia comes from the intention to preserve its share in the market and keep the USA out of the shale oil business. It is supposed that if this business  remains on the edge of profitability, more…

The bearish market for Oil

By GG Analyst in Reviews 0 Comment

EUR/USD

The pressure on the dollar failed to last for all day long yesterday. EURUSD was reversed near 1.2800 and pushed off to 1.2665 during the New-York session. This decline made up for almost all losses suffered on the release of FOMC’s minutes. Now the pair is close to the support level of the short-term trend. If in the coming hours bears become more active and manage to push the pair below yesterday’s lows, the dollar will be strong enough to resume its rally and continue growing in accordance with the fundamental indicators. However, should the upward movement continue, we will probably more…

Only EUR held out yesterday

By GG Analyst in Reviews 0 Comment

EUR/USD

ECB Governor Mario Draghi failed to meet the demands of market participants. They were displeased with absence of a clear guideline in the monetary policy easing. Formally, the Bank pointed out that the policy has too many indefinite variables, so the size of future bond purchases can’t be forecasted with great certainty. However, the BOJ, for example, solved the problem in a different way: they set the target (2% of inflation in the medium term) and defined the way (doubling of money supply), also remembering about methods (purchasing plans which can change). Basing on Draghi’s comments, the markets suppose that the more…

USD’s attack on EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was depreciating all day long yesterday. The pair managed to stop its decline only close to 1.3520. Now trading is held about 10 pips above this local low. Despite the fact that the considerable part of the decline occurred after Yellen’s speech before the Congress on Tuesday, it is hard to find connection between these events as other currencies don’t show such dynamics. The cable, the Aussie and the yen suffered some losses yesterday and the Loonie didn’t manage to grow. The reason for the pressure put on the euro is seen in the policy easing in the more…