Draghi put pressure on the euro, Carney failed to put pressure on the pound

By GG Analyst in Reviews 0 Comment

EUR/USD

ECB chief Mario Draghi made it clear that he remains dovish at yesterday’s press-conference after the rate decision. When commenting the decision he pointed out that the Bank is ready to take action in case of need. These words gave rise to selling of the euro as traders had expected more optimistic comments after a series of positive data. However, Draghi explained that a couple of positive PMIs, which have just entered the positive territory, doesn’t imply large-scale growth of activity and doesn’t affect the Bank’s forecasts on the EU economy. Also Draghi is right repeating that he will keep the more…

Forex roller coaster

By GG Analyst in Reviews 0 Comment

EUR/USD

USD’s reaction to the domestic news is now somewhat nervous. And yesterday it could be observed with pretty clearness.  Due to low activity during the EU session, all attention of traders was focused on the US inflation and also on weekly unemployment claims. The key inflation indexes met the expectations, having grown by 0.2% monthly and by 2.0% yearly. Such inflation rates are very neutral, which frees the Fed’s hands and allows to concentrate on other indicators. The latter includes employment. Yesterday this indicator demonstrated decline of unemployment claims down to 320K, which is the lowest level for the last 6 more…

Payrolls to confirm Bernanke’s words

By GG Analyst in Reviews 0 Comment

EUR/USD

Last week was probably the period of change for the dollar. The American currency has been moving down already since the beginning of July, when Bernanke gave a speech, disproving the expectations of the stimulus rollback in the near future. Last week we saw something different. Bernanke’s assurances were finally heard and accepted due to relatively poor employment statistics. According to the released data, in July the market added 162K of jobs – this is the smallest rate since March. However, the weak March was preceded by the abnormally strong February with its growth of 332K. Don’t be taken in by more…

EUR and GBP to test important resistances

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar remains in the uptrend. Last week the level of resistance moved from 1.3000 to 1.3050. And the resistance of bears is only at 1.3170 now. Technically,  a “flag” is forming. And usually it spills over into continuation of a trend. In our case, should 1.3170 be broken through with confidence, traders will get a buy signal with the approximate target at 1.3570, which is our long-term target. Talks about further growth will be sensible only after these levels are reached. Yet the ability of the single currency to stand firm above 1,36 seems to be more and more doubtful more…

The US labour market extends the dollar rally

By GG Analyst in Reviews 0 Comment

EUR/USD

Employment growth in the USA went beyond expectations in June and, as a result, caused a new tide of USD purchases. According to the released data, it grew by 195K, moreover, the growth rate in the previous month was revised up to the same figure (from 175K). April’s rate was raised even higher – to 199K. Thus, the report and accompanying revision painted a picture of a bit more vigorous growth in the labour market. It was enough for the attack on the dollar to continue and bring EURUSD to 1.28, where the trade stabilized. Now the trading range is still more…