The ECB and BOE emphasize differences of their and the Fed’s policies

By GG Analyst in Reviews 0 Comment

EUR/USD

The European CB and a bit earlier the Bank of England contributed to decline of their domestic currencies by 0.9 and 1.3%, respectively. The differences in the economic situations of these countries made the heads of these CBs accentuate the differences of their policy and that of the USA, which is about to negotiate the stimulus rollback. Thus, at yesterday’s press-conference Draghi put a special stress on the phrase that “the key ECB interest rates would remain at present or lower levels for an extended period of time”. Just two press-conferences ago he said that the Bank “never pre-commited”. It was more…

USA: good, but could be better

By GG Analyst in Reviews 0 Comment

EUR/USD

The upward revision of Manufacturing PMI in the European countries, which happened on Monday, raised the expectations connected with the services sector. For this reason, the disappointment with the downward revision for Germany and the euro zone in general was particularly strong. The Spanish and Italian Services PMIs (there were no preliminary data for these countries) didn’t surprise either. The Italian indicator (45.8 in June) has been declining for two months in a row, pointing at a speedier recession in the sector, and the recession itself (figures < 50) has been lasting already for two years. In Spain the situation is more…

Technical vs fundamental analysis

By GG Analyst in Reviews 0 Comment

EUR/USD

The bears keep the market under vigilant control. The attempts of the single currency to recover and get above 1.31 have failed. This level is the start of Friday’s selling, which eventually brought EURUSD to 1.2990. Then, the second fall below the 200-day MA is also of big importance and is likely to increase the camp of bears. Those, who staked for growth, can be happy that the month and quarter were closed above 1.30. Yet, the main fight for the levels and trends for the coming weeks will take place only closer to the end of this trading week. On more…

Uninteresting payrolls

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment report is considered to be one of the most unpredictable publications.  The market consensus is generally built on the basis of a great data spread, and the actual data very often differ much from it. Deep down, the forecasts were rather congested and the actual data proved to be close to the average market expectations. The release showed that employment grew by 175K against the expected 167K. The same with employment change in the private sector- it proved to be 178K against the forecasted 175K. The data were good enough to believe in the normal pace of growth more…

Enjoyed the rally? Probably, it’s not the end

By GG Analyst in Reviews 0 Comment

EUR/USD

Did you like it? Several factors coincided at once to provoke heavy selling in the dollar, which only in EURUSD resulted in a move of 270pips from the daily low to the daily high. Moreover, having risen from 1.3090 to 1.33 for less than five hours after Draghi’s speech, at night the single currency was consolidating at 1.3340, it means traders have gathered their profits and do not hurry to purchase dollars. Let’s look into the reasons. First of all, during the day the US currency was gradually weakening as a result of the preceding poor statistics, which reduced the likelihood more…