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…

The need and chance for easing by ECB

By GG Analyst in Reviews 0 Comment

EUR/USD

On Friday USD purchasing continued and only on Monday we could see some stabilization. However the latter had been preceded by a serious attack on the euro during the Asian session, due to which EURUSD had tumbled down to 1.3440 at some point. It happened on reaction to the words of FOMC’s Richard Fisher, who criticized the US government for impeding the recovery. Anyway, the single currency found strong support at the level of its 7-week lows. The thing is that the pair has been purchased more than once at 1.3470 since the end of September. Later the pair stabilized at more…

EUR fell in anticipation of the rate cut

By GG Analyst in Reviews 0 Comment

EUR/USD

Such strong fluctuations in the euro aroused by inflation stats haven’t been seen for long. Inflation at 0.7% y/y in the eurozone (against the expected 1.1%) made EURUSD drop by about two figures. By now EURUSD has declined to 1.3539, taking into account that Thursday’s high was at 1.3738. Undoubtedly, selling of the euro coincided with the period of the dollar’s appreciation at the beginning of the day, but then the decline was getting momentum on its own. The low inflation rates, which were observed both in strong Germany and weak Italy, enabled large investment banks to expect that the ECB more…

EURUSD is ready to pierce the resistance

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro doesn’t even think to retreat. Yesterday’s correction in the pair from 1.3790 to 1.3740 by the beginning of the US session had ended with another uprise to the upper bound of the new channel. And in the Asian session today after a short respite the pair is again testing the resistance of the channel. Among yesterday’s statistics only the Consumer Confidence Index for the eurozone is of interest – it showed some improvement. However, it is hardly possible that growth of the index from -14.9 to -14.5 is the reason for the positive sentiment in regard to the single 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…