And again no news is good news for Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar keeps actively depreciating due to the renewed demand for risky assets. EURUSD is hitting local highs, growing for seven out of the last eight days. Yesterday’s high made 1.3138, afterwards the pair retraced, but still managed to remain above 1.31. As we see, the absence of important news is favourable for this pair. Yet, we shouldn’t forget that the biggest share in this rally belongs to the poor data on employment and manufacturing activity in the US. Earlier each time it ended with a sharp outflow of money from risky assets and with appreciation of the US currency. more…

Bernanke spurred decline of the dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

The safe assets keep depreciating. In addition to weakness of the Japanese yen, the US dollar has been falling against the euro for five days in a row. This morning Ben Bernanke has added fuel to the fire, saying that the economic conditions are still far from what he would like them to be. Such words have been immediately taken by the markets as a signal that the FOMC will not hurry to terminate the asset purchasing programme. The thing is that unlike the BOE, where the chairman may for several meetings in a row be in the minority, in the more…

Sad payrolls

By GG Analyst in Reviews 0 Comment

EUR/USD

The published employment statistics showed that the warning signals of other indicators earlier last week had been absolutely correct. According to the latest labour market report  the number of jobs in the USA grew just by 88K against the expected 190K. In line with the recent correlations the US dollar was falling on the poor stats. The single currency went above 1.30 at some point, which had been last seen only on March 25. Now the euro is trading slightly below this level – at 1.2990. In the meantime, the US exchanges were in correction. Maybe it is too early to more…

Forex wild dancing

By GG Analyst in Reviews 0 Comment

EUR/USD

It was a nervous and busy day yesterday. The single currency was yielding to the pressure put by the dollar demand. Here we observe quite a strange correlation and would like to enlarge on it. The large-scale selling of the yen stirred all the crosses with it, which in its turn forced market players to take their profits and switched to the liquid assets like dollars. This is where the decline of the euro by the beginning of the EU session came from. Further the initial decline was gradually offset. But still the pair hadn’t managed to recover fully by the more…

Overcoming the resistance

By GG Analyst in Reviews 0 Comment

EUR/USD

Against our expectations, yesterday proved to be quite a busy day. The initial impulse to sell the euro has been quickly played out and then followed by purchases of the currency starting at 1.2870. In the mid of the US session EURUSD rose to 1.2870 at some point and during trading in Asia today almost hit 1.2880. Yet, the growth impulse is almost exhausted. Most commentators attribute appreciation of the pair to the selling pressure in the dollar, which was caused by the poor Manufacturing PMI data  from ISM. Against the expected preservation, the growth rate slowed down in March. The more…