Classic Forex market

By GG Analyst in Reviews 0 Comment

EUR/USD

Lull in Forex is accompanied by across-the-board growth of stock exchanges. At the end of the previous week the single currency tried to continue its upsurge towards the yearly highs, but was stopped at 1.3700. The bears managed to go off these levels by 30pips and since then the currency has been trading mainly there. In the meantime corporations from around the world are accounting for their profits. They demonstrate quite good results, which together with the opening of the US government and fewer risks of the QE curtailment creates a favourable environment for purchases of risky assets. One more observation more…

USD is sinking because of risk demand

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we witnessed a splendid rally against the dollar. Let’s be honest, it was quite a surprising thing. EURUSD grew from the lows of Thursday (1.3470) by over two figures. The markets slowed down only near the yearly highs, at 1.3680. Now we see some consolidation, so the pair has managed to retrace by 20pips off yesterday’s highs. When ascending, stock markets managed to hit a fresh historic high at 1733 (for the December futures). Psychologically the optimism is understandable: the markets got the long-awaited relief and the debt ceiling increase, which is able to arouse demand for risky assets. But more…

Every which way

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s not easy to characterize the market reaction when there are neither economic nor news releases. Monday was one of such days. Anyway, there were some things happening under the surface. Risk aversion at the end of trading in the USA provoked falling of stock indices down to the lows since the beginning of September. It is remarkable that the correlation between stock indices and currency markets has completely disappeared. EURUSD is living its own life – yesterday it hit the low of 1.3542, but soon returned to 1.3570 and was trading there for the most part of the day. Those more…

Waiting for the happy end

By GG Analyst in Reviews 0 Comment

EUR/USD

Sometimes in films the most dramatic episodes are shown in slow motion so that we feel all the peripeties and depth of the moment. This time it was the same – sticking to its cinematic principles, the States is inching its way into the catastrophe, showing in detail how characters are trying to save themselves as well as the whole world. Yet, in this case events are real, so a happy end cannot be guaranteed. Besides, after the successful rescue in the dying seconds (many quite reasonably believe that politicians will have come to an agreement right by the deadline) life more…

Dissolving of the government shakes trust in USD

By GG Analyst in Reviews 0 Comment

EUR/USD

If in the first hours and days after the deadline the US dollar didn’t suffer much pressure, now it is obviously getting in the downtrend. It is especially clear against appreciation of the single currency. The thing is that the euro is supported by the fact that the political crisis of the Italian government has been resolved. Berlusconi’s party supported Premier Letta in the vote of confidence, which occurred under pressure of the party and its leader. Besides, Obama himself makes the situation tenser. In the political game against the republicans he reminds that further delay in the budget adoption decreases more…