Market Mysticism

By GG Analyst in Reviews 0 Comment

EUR/USD

The famous market commentator, Mark Hulbert, has written a warning article, where he pointed out that yesterday’s decline of the American exchanges could be the start of a fundamental reversal. As an example he cited the fact that the bullish market of 2000s came into existence right on September 9, 2002. And the decline of 2007 started on October 9. It is creepy to think about the strict periodicity of these events – exactly 5 years. And it’s been just 5 years since 2007. On the one hand, the American markets have enough space for a fall, as they are rather more…

IMF warns about high risks of slowdown in developed and developing countries

By GG Analyst in Reviews 0 Comment

EUR/USD

Selling of risky assets in general and of the single currency in particular stopped yesterday with intensification of trading in Europe. The daily low of EUR/USD was 1.2937. The further recovery and stabilization allowed the single currency to close out the day at 1.2970, though trading was very slack because of holidays in the USA and Canada. It can well be the case that the pair will continue growing today and that yesterday’s selling (which actually was without a particular cause and volumes) was nothing more than profit taking after the growth from 1.2050 to 1.3170. Yet there are some factors more…

RBA joins the ranks of dovish DM CB

By GG Analyst in Reviews 0 Comment

EUR/USD

The market remains in the consolidation phase, with EUR/USD fluctuating around 1.29. Various discrepant news releases are tilting the balance first to one side and shortly after to the other one. It’s important that yesterday the single currency didn’t surrender to bears and managed to get over the morning pessimism of the markets. The slight upward revision of the EU Manufacturing PMI data for September inspired the markets with hope. Later that day the ISM Manufacturing PMI statistics for the USA were published. This index proved to be surprisingly good. Instead of the expected 49.8 (which means a slight decline against more…

A new quarter – new trends

By GG Analyst in Reviews 0 Comment

EUR/USD

The last trading day of the week, month, quarter and with some countries of the fiscal year didn’t pass without a sale. On Friday the single currency lost the gains of Thursday – it dropped down to 1.2840 and this night it came close to 1.28. The pressure of this week has been caused by the renewed concerns about the manufacturing slowdown of China. The official data on the Manufacturing PMI have been pointing at the slackening of business activity for two months in a row. It is surprising that notwithstanding this fact the markets, which already last week had the more…

Poor US statistics didn’t stunt the market growth yesterday

By GG Analyst in Reviews 0 Comment

EUR/USD

Spain faces a difficult task, but, in our opinion, Rajoy’s government has taken the right approach to the deficit reduction issue. Next year’s budget, which was published yesterday, focuses primarily on the reduction of the government spending instead of the tax increase. Cutting the government spending by 7.3%, Spain supposes to save €13bln. It’s important that this scheme of deficit reduction goes in line with the EU bailout terms. Thus, Spain formulates the fiscal policy, which beforehand presupposes the turn for help from the outside. Otherwise, it would be necessary to revise the budget in a few months, which would only more…