Cyprus bailout

By GG Analyst in Reviews 0 Comment

EUR/USD

The word “bailout” presupposes some aid, easing of the lot of the rescued. Earlier money allocations to the rescued Greece, Ireland, Portugal and Spain led to growth of the single currency, albeit the short-term one sometimes. Yet it is different with Cyprus, “rescued” last Saturday. EURUSD dropped by 1.5% after the EU’s decision to impose a one-off 9.9% levy on accounts with more than €100K. Smaller deposits will be taxed at 6.75%. Altogether, it should bring €5.8bln to the government of Cyprus. The EU will allocate another 10bln. Earlier it was calculated that Cyprus would need about 17bln, but the IMF more…

Spain takes Italy’s investors

By GG Analyst in Reviews 0 Comment

EUR/USD

All that Italy didn’t get went to Spain. Here we speak about the debt auction that was held in these countries on Wednesday and Thursday accordingly. EURUSD reacted accurately to the markets’ message. If on Wednesday it was decline due to the low investor demand, yesterday the single currency was brought back nearly to the same levels: it’s again trading a bit above 1.30. Yet, it’s worth mentioning that weakness of the dollar also contributed to sales of the euro. It arose on the decreased concerns that the high demand of the US households would boost price growth. As we see more…

Double blow to EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

The moderate buying of the single currency on Wednesday morning stumbled over the wave of sales. The growth momentum of the pair was halted at 1.3060. Roughly in the same zone there had been a reversal a day before , but this time the bears were prepared better. By the middle of trading in the USA the pair had fallen to 1.2922. There are two reasons for the bears to be that self-confident. First of all, the auctions were not a success – three of the four bonds of different maturity demonstrated a higher yield. In the meantime the yield of more…

Trim your sails to the wind

By GG Analyst in Reviews 0 Comment

EUR/USD

But for comments of Bundesbank President Jens Weidmann, the single currency would have continued to slip down yesterday. His words that the current policy of the ECB poses a threat to the monetary policy of the region have triggered a short rally in EURUSD. From the daily low of 1.2990, hit at the beginning  of trades in Europe, the pair grew to 1.3074. However, this mini-rally proved to be short-lived. Very soon eager selling brought the pair back to 1.3020. Actually, all these moves are trifle ones, but there is one fundamental moment. Today we will probably see breaking of the more…

Europe: stirring at the bottom

By GG Analyst in Reviews 0 Comment

EUR/USD

We can’t say that yesterday  passed under the banner of the dollar weakening, thus meeting our expectations. Yet despite the news vacuum in the markets the single currency managed to recoup some of its losses after the payroll release on Friday. For the most part of the day EURUSD was hovering around 1.30, but during the US session it made slight gains and had grown to 1.3050 by the end of the day. The stats on Germany’s foreign trade were quite positive, demonstrating a better growth both of exports (which means improvement outside) and imports. Usually, growth of imports is treated more…