Pre-holiday market speculation

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the US markets went through a one-minute drop by over 2% on the news that the House of Representatives wouldn’t vote for adopting a new fiscal policy. Republican leader Boehner, the speaker of the House, announced that since the bill didn’t have enough advocates, the vote would be postponed. Boehner’s “plan B” hasn’t worked. Now both the parties have to quickly come to a mutual agreement, otherwise the automatic spending cut and tax increase will deal a hard blow to the economy. The Forex market took the news calmer. The euro tried to get to 1.33 yesterday afternoon, but in more…

Nothing serious, just a pullback after the rally

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the markets finally pulled back. The continuous growth, lasting for almost 8 days, stumbled over a quite expected obstacle yesterday. On the way to consensus Obama and Boehner passed from mutual concessions to mutual threats. The president promised to veto the republicans’ plan for the budget and fiscal policy. We already warned that this was likely to happen. Common sense prompts that a compromise will be eventually reached, however the way to it won’t be smooth. Also most economists consider that for now it will all end with a temporary agreement, which will help to avert the fiscal cliff at more…

EUR – the strongest major at the moment

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets seem to be gripped by the holiday mood. The decrease in the number of market participants clears the way to stop-order levels. It’s especially typical of our digital era, when trading depends largely on the digital algorithms. At such moments like this the pair, leaving the established trading range, stumbles over an avalanche of stop orders, which boost the further motion etc. In our case, the single currency, cursed by everyone earlier this year, is now the best among the majors. For instance, against the dollar the euro has been appreciating for 8 days in a row and is more…

Are the expectations too high?

By GG Analyst in Reviews 0 Comment

EUR/USD

The slight concession from Boehner inspired the currency markets on Friday. EURUSD was soaring up during the US session and grew on triggering stop orders this morning. The latest maximum hit by the pair is 1.3187. Yet since then the euro has slightly rolled back on the retracement of Asian markets and is now trading close to 1.3150. Possibly, the bulls’ efforts were not vain -the pair rose to its 7-month highs, which opens the way up to 1.3280, the starting level of the May sale. Despite the general optimism, Boehner’s concession is just the first step on a long road. more…

Fed eases the policy and raises transparency

By GG Analyst in Reviews 0 Comment

EUR/USD

The crisis is not the best thing to be joyed at, but now it is the very factor which raises the transparency of banks. Important: the Fed WILL extend the asset purchase programme. So, now the current purchases of the mortgage-backed securities to the Fed’s balance sheet (40bln/month) will be joined by purchases of US Treasuries (45bln/month). Operation Twist expires this year. The most unusual and surprising thing here is that the Fed has decided to set the parameters, which would serve as signals for consideration of a tougher monetary policy. Thus, for the Committee to start thinking about a more more…