Expanding attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s Flash PMIs for the eurozone could become an unpleasant surprise for the euro, just like frankly dovish comments of Draghi and Nowotny at the weekend and on Monday. Actually, they didn’t. The single currency proved to be strong enough to fight attraction, although absolutely all the Flash PMIs fell short of expectations. The German and EU estimates remain above 50, which separates decline from growth. Anyway, Germany’s manufacture didn’t grow, staying at approximately the same level, and the services sector slowed down its growth. As a result, the composite index tumbled from 56.0 to 54.8 and the Flash Manufacturing PMI, more…

VIX lows, GBP highs

By GG Analyst in Reviews 0 Comment

EUR/USD

The dollar was getting weaker all through the EU session yesterday. Only at 1.3640 bulls eased their pressure, taking their profits. The same situation was observed in the stock exchanges. Now the euro/dollar is trading at 1.36, thus promising a good week for bulls. They will hardly yield here without trying to attack the 200-day MA. All this depreciation of the dollar leads to decline in the VIX volatility index. Earlier we thought that the very approach of the index to its lows would be more than enough and the market wouldn’t go further, since we expected that volatility would grow more…

EUR is sold while growing

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro’s shy attempts to recoup its losses on Friday faced a serious obstacle. While there’s no clear-cut downtrend in the pair, bulls don’t seem to be very strong either. The situation looks as though below its 200-day MA the euro was sold on upward bounces instead of being purchased on the dips as it has been in the previous months. If only bulls were as strong as before, they would, most likely, take advantage of the poor US statistics, released last week. Thus, Thursday’s publication of the retail sales data reported growth by 0.3% in May against the expected 0.5%-0.7%. more…

Soft pressure on the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is trying hardest to catch at 1.36. Yesterday it slipped from 1.3668 to 1.3585 in the course of the sluggish EU session. The only thing which prevented it from further  decline was strengthening of risk demand that was supporting the US exchanges. Whatever skeptics say about the minimum effect of the ECB’s measures on the euro, it still exists. In the currency market the rates have shifted from the euro to the dollar, so in the quiet market we see prevalence of gradual  euro selling in favour of the US currency. The latter will function more as a more…

Why the ECB failed to put pressure on the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency frayed traders’ nerves a lot yesterday. Its initial decline from 1.3540 to 1.3501 for about an hour was recouped by the reverse growth and closing at 1.3660.The ECB cut all the three rates, making the bank deposit rate negative. So what aroused purchasing of the single currency again? First of all, the demand for risky assets, provoked by the rate decrease. After all, it often supports the single currency. Then it is a correction of the forward guidance, which now states that the rates won’t be reduced again. It was expected that the ECB would also take other more…