Fast and furious Draghi

By GG Analyst in Reviews 0 Comment

EUR/USD

Draghi, who yesterday celebrated the second anniversary of his tenure as president of the ECB, acted in a very unexpected way. The ECB lowered the refinancing rate by 25 basis points to 0.25%. The deposit facility rate was kept unchanged at the zero point. The interest rate was also cut by 25b.p. to 0.75%. At best the governing council was expected to have given some hints at taking action in a month or to have announced liquidity support through other tools of the ECB. Draghi again proved to be more maneuvering than considered by many. At the press-conference he pointed out 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…

USD abstains from the further attack

By GG Analyst in Reviews 0 Comment

EUR/USD

USD doesn’t feel like leaving the gained positions for long, but at the same time it is not strong enough to go further. For now. Some improvement seen in EURUSD on Monday was leveled down by the decline on Tuesday. It is remarkable that there was no bad news from Europe. The markets simply fear dovish comments that Draghi can make at the press-conference tomorrow, hinting at taking action in December. Strong advocates of active measures call on the CB to loosen lending standards already in November. The latter is hardly possible. Yesterday Mario Draghi pointed out that the EU affairs more…

Roller-coaster

By GG Analyst in Reviews 0 Comment

EUR/USD

The payrolls caused much trouble to the dollar. The employment stats were poor enough for the market participants to sweep away all thoughts about the stimulus tapering by the Fed in the near future. Yet, the negative news on the labour market didn’t drive the markets into pessimism as stock markets were growing. The US dollar tumbled down to the 23-month low against the euro. From Tuesday’s low of 1.3660 EURUSD has already grown to 1.3790. According to the published statistics, the number of new jobs increased by 148K against the expected 180K.  The unemployment decrease to 7.2% again occurred due 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…