Timid attempts of EUR to go up

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock market is hitting new highs, albeit not as confidently as before. This craving of investors for the yield affects EURUSD. We can’t say that it will give rise to an ascending trend, but it is quite enough not to allow a drop in the pair. Last night the pair tried to break above 1.29. It failed, but the current position is a figure above Friday’s low. There aren’t any serious moves due to slack trading on Monday (most European countries had holidays) and absence of important macroeconomic news. Today this news vacuum in the euro zone and the more…

Gradual, but steady growth of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Since the beginning of May the US dollar has been on the rise. In the previous years it was accompanied by the turn of stock markets from growth to decline. However, this time the situation is a bit different. The single currency lost about 3.5% from May 1 till last Friday and trading is now held close to the lows of March. If the markets are not strong enough to break lower, the next support level will be seen at 1.2650, i.e. the lows of November. This would be a favourable outcome for the EU economy, which is striving to get more…

USD’s retracing at the beginning of an important week

By GG Analyst in Reviews 0 Comment

EUR/USD

We have again stepped into one of these eventful weeks at the beginning of the month, when all the three news causing highest volatility come one after another. On Wednesday we’ll try to make out from the commentary to the Committee’s meeting if there is any change in the Fed’s rhetoric.  On Thursday all eyes will be riveted on the ECB’s interest rate decision, where a cut to 0.5% is expected. Finally on Friday we will deal with payrolls. The market positioning before these events accounts for most market on the week’s opening. The dollar is losing its ground in Asia, more…

Premier being introduced, EUR breathed a sigh of relief

By GG Analyst in Reviews 0 Comment

EUR/USD

The European currencies are not going to yield without a struggle. Last night both the euro and the pound were doing well against the dollar, but for different reasons. Let’s have a closer look at them. At first sight it looks really surprising that amid the growing fuss about the possible rate cut by the ECB next week and also almost right after the release of disappointing statistics on the business activity (PMI, ZEW, Ifo) the euro is able to demonstrate growth. However, it should be taken into account that the rate cut by another quarter of a percent will hardly more…

Easy come, easy go

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD suffered the biggest intraday drop since June 2010 – by about 1.5%. The pair fell from 1.32 down to 1.30, thus ruining all hopes for growth and getting back to the model of consecutive descending highs and lows, which set in at the end of the previous week. This massed selling was due to a combination of two factors at once. First, the markets felt pressure because of the rather poor corporate reports and concerns over the global economic growth. The latter arose due to the pessimistic outlook of the IMF. Then, the head of Bundesbank  and apparently one of more…