Correction being over, the market’s moving on

By GG Analyst in Reviews 0 Comment

EUR/USD

The market didn’t disappoint our expectations – some instruments stopped retracing. The stock exchanges were hitting their 5yr highs, EURUSD again threatens to break above 1.34. Now trading is held just a step away from these levels. As two weeks ago it was caused by rumours about quite a good demand at the Spanish auctions. In a couple of hours the information proved to be true, which further spurred the growth. However, we insist that it is just a cause, the real reason is different. Traders finished the phase of consolidation after the preceding big rally, reshuffled their positions and got more…

The Big Picture

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday EURUSD spent the whole day between 1.3260 and 1.3320. As we said earlier, the markets are set for consolidation after the strong growth, however it’s really hard to find a reason to purchase the dollar. The Treasury has sharply decreased borrowing in the markets, which in its turn makes the need to purchase the dollar less strong. Besides, the EU peripheral debt markets are again attracting capital since yields are now back to their normal levels. In the news background Germany’s economic outlook for this and next year is of interest. If the outlook is correct, the EU locomotive will more…

A battle for technical levels

By GG Analyst in Reviews 0 Comment

EUR/USD

Demand for safe havens is still very strong in the markets. By now the single currency has fallen down to 1.3280. Last Thursday it was hovering around this level before Draghi’s press-conference. Moreover, this area served as a strong resistance in the last three weeks of the previous year. Thus, today we are to see an interesting skirmish between the bulls and bears. In case the bulls win the battle the former resistance will turn into a support, from where the currency will continue to grow. So now we only have to wait. Yesterday’s statistics didn’t have any significant influence on more…

A respite in safe havens

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency and many other markets experienced a downward correction yesterday. The fact that traders ignored bad news from the euro zone proves that it was just a correction, not the beginning of selling (at least in the euro).The decline started later and was quite moderate. The profit-squeeze drove the pair from 1.34 to 1.3340. This is where trading was closed last week. And this is where the euro came to be this morning after another attempt to break through 1.34. Thus, trading is held in a very narrow channel, so far there haven’t been any serious causes for growing more…

Europe’s awakening

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s fluctuations were really impressive. Excluding the yen with the political nature of its rally, the market was squeezed in narrow daily ranges for a long time. It seemed that already nothing could rock that boat. But yesterday the good auction results in Spain were enough to stir up the market. Draghi’s concentration on the economic indicators instead of the financial sector also made its contribution. Now for details. The yield of Spanish 5yr bonds fell down below 4% yesterday in comparison with the peak of 6.46% in July. The bid-to-cover ratio was also at a quite favourable level of 2.07. more…