The Fed points out improvement despite contraction in government spending

By GG Analyst in Reviews 0 Comment

EUR/USD

The US S&P 500 keeps suffering losses. Yesterday it decreased by other 1.3%. The stock bulls have a cause for concern. First of all, the ADP statistics proved to be worse than expected, showing employment growth in the private sector by 135K in May against the forecasted 171K. Of course, it’s better than the increase reported in April – 113K (revised down from 119), but it is too little to speak with confidence about steady growth. Anyway, in the Fed’s Beige Book, which was published later yesterday, market observers noted a surer growth, varying “from modest to moderate”, in 11 regions. more…

Is USD up for a reversal?

By GG Analyst in Reviews 0 Comment

EUR/USD

On Tuesday the single currency stalled on the way to 1.31. Thanks to other instruments  the US currency strengthened its positions a little bit. Anyway, the dollar index (DXY) is moving away from its extremums, which it reached at the end of the previous month. Yesterday it was by 2.5% below the highs, hit on May 23. We have more and more doubts that the dollar will resume growing in the near future. For about a year the index has been in the uptrend, yet the latter has been running in waves. We should take into consideration that another tide of more…

Stock and Forex markets are in disharmony

By GG Analyst in Reviews 0 Comment

EUR/USD

The last day of the month wasn’t very lucky for the stock exchanges. Players decided to gather their profits and were eagerly selling stocks. However, it wasn’t an obstacle for S&P 500, which demonstrated the highest monthly close in history and all in all seven months of growth. It is remarkable that in the meantime there was a real fight between bears and bulls in Forex. As could be expected, the latter didn’t hurry to abandon 1.30 and spared no effort to help the pair consolidate lower. Over Friday the pair first fell from 1.3050 to 1.2950, but at the end more…

Bulls seek to close the month above 1.30 in EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

Instead of the expected growth the US dollar demonstrated a decline yesterday. It’s remarkable that EURUSD managed to get above 1.30. If the pair consolidates at this high, by the beginning of the week and the month we will get the rate above the important psychological level and above the 200-day MA. This disposition can arouse a considerable purchase interest. We still have doubts about the further growth, having in mind the US and EU fundamental indicators, but are less sure that this scenario will develop in the near future. As this week has showed, the US dollar does not necessarily more…

Rebellion of EU currencies

By GG Analyst in Reviews 0 Comment

EUR/USD

The sudden and ungrounded surge of European currencies (EUR, GBP, CHF) against the dollar should be treated as nothing more than ousting of bears from the market. It can be also called the last-ditch fight of the bulls, who summoned all strength to reverse the situation. But as practice shows, very often yesterday’s bulls turn out to be tomorrow’s bears, so these are the same big players, gaining liquidity for further attacks. Why are we so sure? The thing is that there was no reason for purchasing the euro. The only important event in Europe yesterday was the release of German more…