The news is getting better day by day

By GG Analyst in Reviews 0 Comment

EUR/USD

The stock markets were trading sideways while Forex faced a slight retracement yesterday. The single currency was depreciating against the dollar and travelled the way from 1.3116 down to 1.3030.This decline is better treated as a good opportunity for those who missed the uptrend to buy the euro cheaper. The impressive growth of the euro in the previous week or two (depending on the pair you are considering) required a retracement and profit-taking and that is what we saw yesterday. Though, of course, some newsfeeds contained messages which attributed that performance to the concerns around Spain’s unwillingness to accept a bailout more…

Looking through the glass or September against May

By GG Analyst in Reviews 0 Comment

EUR/USD

Over just one day the single currency crossed 1.30 and made a fresh advance to 1.31.  Now trading is at 1.3120, and the daily high of Friday was around 1.3170. Looking at the current rates, it’s hard to believe that only 2 weeks ago bulls and bears were fighting for 1.25. The double whammy, from Draghi and Bernanke, made the dollar retreat on all fronts. It’s remarkable that this should happen against the ongoing issues in the peripheral part of Euro Zone. The troika is going to release its report on the Greek affairs only in October, thus deferring the verdict more…

Fed and ECB: a one-two punch for the dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke surpassed the optimistic expectations of the markets. The FOMC announced the beginning of additional purchases of the mortgage-backed securities. For this purpose the CB is going to spend $40bln each month. Moreover, we shouldn’t forget about the ongoing Operation Twist, which presupposes buying of long-term securities by means of selling the equal amount of short-term ones. The monthly volume of such transactions makes 45bln. All this is done to reduce the long-term interest rates. Besides, the period during which the Fed will be obliged to keep the interest rates low has been extended to mid 2015. Thus, in the interval more…

QE3: this time the party is earlier than usual

By GG Analyst in Reviews 0 Comment

EUR/USD

At present markets are filled with optimism. You can see it clearly in the performance of American stock markets. While S&P 500 is hovering around the highs of spring 2008, Dow Jones has gone to even greater lengths. Yesterday this benchmark reached the highest mark since late 2007. Just 6% further up and the global maximums will be hit. However, the current employment level is still too far from the levels of October 2007. According to the recent data, the number of jobs is now 4.4bln less than 5 years ago. In this situation we even cannot count much on the more…

Risk on

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was under a heavy pressure of markets yesterday, which pushed it down to 1.25. However, being again supported by the markets, the euro didn’t fall below this mark. It seemed that traders postponed the attack of the important levels for today or tomorrow. Later the single currency managed to consolidate success on the news leak from the ECB. The news that two ECB’s officials unveiled the details of Draghi’s plan let the single currency consolidate solidly above 1.25. The details are as follows: the asset purchase programme will be unlimited, however liquidity injecting will be sterilized. The Bank more…