The Fed is ready for the stimulus rollback

By GG Analyst in Reviews 0 Comment

EUR/USD

Those, expecting that the FOMC’s minutes would make things clearer, must have been utterly disappointed yesterday. The minutes didn’t contain any obvious signals of the stimulus rollback in September. The members of the Committee have different views on the future of the Fed’s policy. We should understand that the meeting was held before the release of August’s employment statistics, which have strengthened the beliefs that the economy  needs support less and less.  The improvement in unemployment claims lets market participants hope that the Fed’s members, which have doubted better economic growth, will become more confident about it in mid September. Despite more…

USD is up against the developing currencies and Aussie

By GG Analyst in Reviews 0 Comment

EUR/USD

As could be expected, trading crossed the bounds of the narrow range, thus arousing strong volatility in the currency market without any particular reason. The euro purchases had led the pair from 1.3320 to 1.3450 by the beginning of the active US session.  Thus, the pair entered the area of half-year highs, going beyond the peak of June 19, which made 1.3420. It is also remarkable that this movement was not immediately followed by a retracement. Up to now trading is held above 1.34, which speaks about strength of the bulls and inspires hope for further growth. Anyway, the picture may more…

Where is it better?

By GG Analyst in Reviews 0 Comment

EUR/USD

Reduction in the Fed’s asset purchases is more and more favoured by the FOMC’s members. Earlier we heard from Lockhart about readiness to reduce bond buying already this autumn. Yesterday we heard something of the kind from Evans, Chicago Fed president. This official, who in most cases takes up a dovish position, said that he expects faster economic growth in the second half year and that the Fed is likely to start to curtail its bond-buying round already this year. Just a few  weeks ago such claims would have caused significant shifts in Forex, but now to counterbalance improvement in the more…

The dollar’s decline slows down

By GG Analyst in Reviews 0 Comment

EUR/USD

Though Wall Street is close to record levels, Forex has been rather quiet over the last 24 hours. While S&P 500 yesterday closed at the highest level in history, EURUSD failed to break even through the highs of Thursday night. The only achievement of bulls yesterday was that they managed to stop the correction at 1.30, taking the pair to 1.31. Well,  it’s not bad, taking into account that just a couple of days ago the pair was at the three-month low of 1.2750. Anyway, the market hasn’t yet built the present-day tempered attitude to the stimulus rollback in the rates. more…

Too big to grow

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex’s reaction to Bernanke’s commentary was the strongest, yet the market was the first to come to senses after the violent movement. Yesterday since the end of the US trading session and all through the Asian one the dollar index was retracing. Friday is expected to be quiet as no important news is scheduled for today. Among yesterday’s releases the German Flash Manufacturing PMI, which reflected the continuing weakening, deserves attention. Now the euro zone and Germany, a former locomotive, show roughly the same performance. Though, Germany’s Services PMI proved to exceed expectations, returning to the growth zone after two months more…