Hit the bottom?

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday bulls managed to keep the pair from hitting new lows. It was actively purchased below 1.2590. Earlier today we saw some hints at profit-squeeze in USD, which helped to push the pair to 1.2670. Yet, the movement doesn’t look very steady in expectation of details on the ABS programme. Again it was interesting to see that the news about slower business activity didn’t push the pair to new lows. On the contrary, the latter slides down much easier when there isn’t any obvious reason. Yesterday’s data on the German Manufacturing PMI in September were revised from 50.3 down to 49.9 more…

USD may depreciate on poor GDP data

By GG Analyst in Reviews 0 Comment

EUR/USD

Hardly had we written about the threat to the local lows in the pair yesterday when the pair was pushed below 1.27. The major part of this decline took place against liquidation of stops after hitting the previous lows. Formally, this selling occurred when Draghi repeated that the ECB was ready to continue its unconventional policy to avoid inflation risks. The pair came to its senses only at 1.27. Here it got support and now makes new attempts to consolidate. There are no reasons for growth as the eurozone keeps releasing poor news while the US labour market, according to weekly more…

USD doesn’t hurry to give in

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro tried, but failed to attack the dollar yesterday. The relatively good PMI stats for Germany and France didn’t help the eurozone to surpass expectations in all indicators. Now the market has a great set of facts and statistics on big countries at its disposal, though special attention should be paid to small ones. Now Germany is the one to carry the overall performance of the eurozone.  The Services PMI has grown to 55.4 in September instead of the expected slowdown from 54.9 to 54.6. In its turn it helped the Composite PMI grow against the rate of the previous more…

The silence of G20 enables JPY to depreciate

By GG Analyst in Reviews 0 Comment

EUR/USD

Last weekend there was held a meeting of G20 central bank governors and finance ministers. The representatives of the largest countries, constituting about 85% of the global economy, focused on stimulation of economic growth. Nothing was said about currency movements. Thus, the current rally of the dollar received a tacit approval, so the bulls may gain the lead, at least for a while. Now USDX is trading near its two-year highs. Then growth of the dollar was explained by weakness of the single currency. And now it is USD’s rally, aroused by expectations of the monetary policy tightening and of impressive more…

Scotland supported Britain and helped the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

All day long yesterday the single currency was taking painful attempts to recover after the mess made by FOMC’s intention to introduce a tougher monetary policy than expected. It also must have been to the advantage of the single currency that the demand at the TLTRO auction , which the ECG conducted for the first time, proved to be lower than forecasted. The analysts, surveyed by Bloomberg, expected bids for approximately €175bln, while the actual demand proved to be twice as low, making 82.6bln. It means that banks don’t hurry to make 4-year loans at quite a low interest rate of more…