Profit taking in GBP

By GG Analyst in Reviews 0 Comment

EUR/USD

Monday didn’t abound in important news releases and statistics. Anyway, the single currency managed to slightly grow against the dollar and the pound. At the very beginning of trading in Europe EURUSD rose by 40 pips due to the stronger risk demand, which we highlighted in our yesterday’s review. However, by the end of the day the positive had dispersed. To some extent it was a result of Draghi’s claims in the EU Parliament that purchases of public and private debt fall ‘squarely’ within the ECB’s mandate. Many officials in Germany and other core countries, including members of the ECB, are more…

Fed to end QE by October

By GG Analyst in Reviews 0 Comment

EUR/USD

As reported in yesterday’s meeting minutes of FOMC, if the US economy maintains the expected growth rate, the Fed will announce the end of QE already in October. It means that at the October meeting the decrease will make 15bln and before that, in July and September, asset purchases will be reduced by 10bln. It is unlikely that the Fed will give up this course for a quicker one because of the strong employment data. It is remarkable that the minutes highlighted concerns about investors’ possible misinterpretation of the  risks in the hope that interest rates will remain low for long. more…

Persistent purchasing of EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

It was quite a boring trading session for the pair, nothing to compare with Brazil’s defeat in the semifinal. It is not the first time the US dollar takes timid attempts to grow in the morning and then falls down in the afternoon. It is remarkable that the depreciation of the US currency (the growth of EURUSD) is going on against the correction in the stock exchanges. The latter are concerned about the ratio of corporate profits before the beginning of the reporting season – Samsung’s downward revision of the forecasts has its effect. Anyway, it doesn’t spoil the general picture more…

Bears win back 200-day MA in EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

Thursday’s stats on US employment contributed to strengthening of the US dollar. Yet, growth of the latter is least conspicuous against the pound, but against the euro and the yen the US currency has appreciated well enough. The dollar bulls want to depict the recent surrender of the 200-day MAs in EURUSD and USDJPY as an occasional and short-term trip beyond the key levels. The main reason for this movement is perfect employment statistics. The employment has grown by 288K, in the private sector its increase has been also good – by 262K. As a result, the average semiannual growth totals more…

Flying Kiwi

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar has closed the second week with decrease. The dollar index is again flirting with the rate of 80, which hasn’t been seen for over a month. The main reason for such pressure  is poor consumer demand. Apart from Wednesday’s downward revision of the final GDP data for the first quarter, yesterday we got consumer spending statistics for May. This is a wider indicator than retail sales, the Fed often appeals to it when considering consumer activity. So, yesterday’s data proved to fall short of expectations. The personal spending last month grew by 0.2% (against the expected by 0.4%). more…