Expanding attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s Flash PMIs for the eurozone could become an unpleasant surprise for the euro, just like frankly dovish comments of Draghi and Nowotny at the weekend and on Monday. Actually, they didn’t. The single currency proved to be strong enough to fight attraction, although absolutely all the Flash PMIs fell short of expectations. The German and EU estimates remain above 50, which separates decline from growth. Anyway, Germany’s manufacture didn’t grow, staying at approximately the same level, and the services sector slowed down its growth. As a result, the composite index tumbled from 56.0 to 54.8 and the Flash Manufacturing PMI, more…

Yellen against USD

By GG Analyst in Reviews 0 Comment

EUR/USD

USD has been falling after Yellen’s words about ‘continuing commitment’ to economic support from Fed. It means that Fed’s governor remains dovish, just like at the end of the previous year. This softness anyway didn’t break the trend for tapering, set by another ultra-dove, Bernanke. In effect Yellen said that the threat is posed by deflation rather than inflation. In reaction to this comment EURUSD returned to 1.3840 during the Asian session. It is even possible that the growing energy independence of the USA is playing a crucial role here. The thing is that in the 2000s the global economic growth more…

Closing short positions in commodity currencies

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro is still under pressure. The support at 1.3750/60, which had been strong at the beginning of the week, was surrendered by the bulls yesterday. By the way, similar performance is observed in the US stock markets. They are sagging under the burden of rate-increase expectations. However, the dollar cannot start a real rally as there is no unanimity in the FOMC. Evans, for example, expects a rate increase in the second half of 2015.  It somehow contradicts the core market forecast, according to which the rates will be raised in the first half. The dollar is depreciating against the more…

Investors seek refuge, disregarding EURUSD

By GG Analyst in Reviews 0 Comment

EUR/USD

Escalation of the Ukrainian crisis has put severe pressure on the Asian exchanges today. Investors are looking for safe assets, trying to minimize risks of the expanding conflict in the Crimea. The question about safety of this or that asset is really acute now. Let’s dwell on this today. In Forex the yen and franc are in primary demand. Besides, Gold and Oil are purchased quite well. The US stock futures have come off their historic highs. This movement isn’t large-scale, but this reflex impulse looks very revealing. The market sentiment about the EU currencies has changed. The euro and pound more…

It’s all USD’s fault

By GG Analyst in Reviews 0 Comment

EUR/USD

The pair got support on the strong stats from Europe and relatively poor data from the USA. Yesterday’s PMI helped the single currency get off the lower bound of the range, forming since the beginning of the week. The index pointed out strengthening of business activity in the eurozone. And what’s important not only in Germany, but also in other countries. But afterwards dollar bears fastened on the continuing claims index, which has been on the rise for the last three weeks. Except for one week in July, distorted by the holidays, the last time unemployment claims exceeded 3.06 million was more…