Fierce fight of bulls and bears

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday was marked by an interesting fight between bulls and bears. The dollar has a good chance to grow due to the coming stimulus rollback by the Fed. At the same time, the single currency is also getting some good news. The preliminary PMI rates for the largest countries of the eurozone proved to surpass the expectations and grew against last month’s rate. Manufacturing PMI for the whole eurozone hit 51.3, but the biggest contribution was made by improvement in Germany, where that index rose from 50.7 to 52.0. However, these rates (exceeding expectations, by the way) failed to prevent the more…

The Fed is ready for the stimulus rollback

By GG Analyst in Reviews 0 Comment

EUR/USD

Those, expecting that the FOMC’s minutes would make things clearer, must have been utterly disappointed yesterday. The minutes didn’t contain any obvious signals of the stimulus rollback in September. The members of the Committee have different views on the future of the Fed’s policy. We should understand that the meeting was held before the release of August’s employment statistics, which have strengthened the beliefs that the economy  needs support less and less.  The improvement in unemployment claims lets market participants hope that the Fed’s members, which have doubted better economic growth, will become more confident about it in mid September. Despite more…

EUR got stuck in the corridor

By GG Analyst in Reviews 0 Comment

EUR/USD

In the absence of any significant news trading in the markets is usually nervous and technical levels of support and resistance become particularly important for traders. Since neither Europe nor the USA didn’t publish any important statistics yesterday and are not going to release any today, the market, being left to itself, is drifting in the corridor of 1.3300-1.3370. This range can’t be called very narrow, but note that since the end of Thursday the market has jerked to its bounds and stayed there for a while, preferring to return to the area between 1.3325 and 1.3355. As there are no more…

Non-US assets are getting more popular

By GG Analyst in Reviews 0 Comment

EUR/USD

The second half-year in the markets will apparently be different from the first one. Earlier this year we observed acceleration of the dollar together with the growth of the US stock markets. Now it seems that despite the time for the Fed to  start the stimulus rollback is getting nearer, the USD is depreciating against most of its rivals and the US exchanges lack buyers. Aren’t the US assets attractive when the Fed is so close to policy toughening? They ARE attractive, but not against oversold EU assets. According to an old observation, economic improvement in the USA is often half more…

Forex roller coaster

By GG Analyst in Reviews 0 Comment

EUR/USD

USD’s reaction to the domestic news is now somewhat nervous. And yesterday it could be observed with pretty clearness.  Due to low activity during the EU session, all attention of traders was focused on the US inflation and also on weekly unemployment claims. The key inflation indexes met the expectations, having grown by 0.2% monthly and by 2.0% yearly. Such inflation rates are very neutral, which frees the Fed’s hands and allows to concentrate on other indicators. The latter includes employment. Yesterday this indicator demonstrated decline of unemployment claims down to 320K, which is the lowest level for the last 6 more…