EUR drift

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency keeps drifting down. The periods of consolidation are followed by sales. Now, when most exchanges are closed for the Catholic Easter, the market, most likely, will trade sideways. The week promises to be quite eventful, despite today’s lull. EURUSD is again at the local lows, below 1.28. Now it is trading at 1.2780, while last week’s low was 1.2750. It’s unlikely that slack trading in a few markets will provoke the break of this support. The currency markets in such days may be very volatile should some extraordinary events occur. But in the absence of such events currencies more…

A slack bounce of EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

Opening of banks in Cyprus let the single currency heave a sigh of relief yesterday. No doubt, the euro grew mainly on positive sentiments, nothing more. There are still no reasons to believe that tomorrow things will be better than yesterday. Purchases of the single currency were supported by the inclination to take profits from the previous drop. Yet the bulls didn’t manage to push the currency far from the four-month lows. EURUSD was growing to 1.2840, but now is again hovering at 1.2800. We shouldn’t expect any volatility in the markets  today, as most of them are closed for the more…

EUR is under its 200-day MA due to new troubles at the periphery

By GG Analyst in Reviews 0 Comment

EUR/USD

Italy is trying to form a coalition government and this is a new problem for the euro. Yesterday the currency once again hit a fresh four-month low against the dollar on the news that the leader of the party which won last month’s elections, Bersani, promised to appoint Berlusconi as head of the committee for reforms. If you remember, the need for reforms was exactly the reason why Berlusconi had been forced to resign the post of the country’s prime-minister in 2011. This news and other statements about problems with creation of the coalition government caused much anxiety in the markets, more…

Cyprus as a model for further “bailouts”

By GG Analyst in Reviews 0 Comment

EUR/USD

The market optimism on the Cyprus deal was supported only by the hopes that that scenario would never happen again. And we warned from the very beginning that, quite the opposite, the bailout of this small island could serve as an example for the further bailouts (if they will be needed). We warned, but couldn’t even suppose that it would be avowed by one of the high-rank officials of the EU so soon. It was done yesterday by the Dutch Minister of Finance and President of the Eurogroup Jeroen Dijsselbloem. The euro-optimists once again were punished. EURUSD sank by more than more…

EUR took advantage of the verdict to the Cyprus banking future

By GG Analyst in Reviews 0 Comment

EUR/USD

After a week of markets’ and investors’ tortures, Cyprus has eventually found what it can sacrifice to prevent the uncontrolled swift crash of its financial system. Frankly speaking, Cypriots agreed to a slow and gradual dying of their banking sector. You see, in exchange of €10bln from the international creditors (the EU, the IMF, the ECB) Cyprus makes the second largest creditor of the country – Laiki- a “poor bank”, which in addition to its own debts will get toxic debts of the Bank of Cyprus. Deposits above 100K won’t suffer restructing and won’t be taxed. However, big investors may lose more…