From zero interest rates down to negative ones?

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD is getting closer to last week’s highs, again trying to consolidate above 1.3550. From the technical viewpoint, there are no serious resistances right up to 1.3750/80. Last week the pair couldn’t go higher because of Bloomberg’s article about possible introduction of the negative deposit rate in the ECB and because of the following release of FOMC’s meeting minutes. These minutes also pointed out a possibility of negative rates on the Fed’s excess cash. Today the markets are worried about the following news: the biggest US banks wrote that should negative interest rates on excess cash be introduced they would be more…

Toward the mountaintop, inch by inch

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro keeps recouping its losses and has already recovered to the levels seen before the ECB’s rate decision. 1.3500 had been broken by the beginning of the EU session, after which bulls wanted to take the pair higher, but were stopped at 1.3540. The bears are retreating, albeit gradually. To surrender there should be more solid reasons and there hardly was any yesterday. In the meantime, stock markets were making their way up for the most part of the day. At the beginning of trade S&P 500 hit 1800 and Dow broke above 16000, but then players decided to start more…

The market froze expecting Draghi and US stats

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex in general and EURUSD in particular are still in the standby mode, all waiting for Draghi’s commentary to the decision of the ECB’s governing council and for the release of the US GDP for 3Q and of unemployment claims, which can help to determine the trends of the labour market before tomorrow’s payrolls. The consensus forecast of economists doesn’t speak about changes in the refinancing rates and the deposit facility rate, but the community is waiting that Draghi will point out some measures to normalize liquidity in the banking sector of the region, as the latter is stalled getting ready more…

EUR is moving up regardless of economic slowdown

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency hit fresh two-year highs against the dollar. Yesterday’s high made 1.3824. It is remarkable that the market should be so persistent, purchasing the euro. The thing is that Flash PMIs for France, Germany and the whole eurozone proved to be much worse than expected. Instead of increasing the French manufacturing activity shrank even more, which is reflected in the drop of the index from 49.8 to 49.4 against the expected 50.3. In Germany the situation is a bit better, but the index still failed to meet the expectations. The Manufacturing PMI rose to 51.5 against the forecasted 51.6. more…

Waiting for the payrolls and final attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The dollar made at least a pause in its decline, when yesterday it failed to break above the eight-month lows in the index. Moreover, the dollar bulls even tried to attack, which spilt over into the drop of EURUSD to 1.3650 at some point. By the end of the day a part of those losses had been recouped, but talks about fresh highs in the pair are no longer relevant. Anyway, to continue the reversal players need more certainty. This certainty may probably come from today’s employment data. The payrolls, which have been detained for over two weeks, will be published more…