EUR is getting ready for the march down

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency hit a fresh 2yr low below 1.21 and on Monday it was down at 1.2067. It’s worth mentioning that then, in mid 2010, this two-year low didn’t last for long. EUR/USD was trading below 1.22 just for a couple of weeks, having registered the minimum of 1.1876. Now trading is held just 2% from those minimums. However, at that time the market participants were more optimistic than now. In 2010 they believed that the EU leaders would manage to keep the situation under control. Now this belief is almost gone. The gangrene has already spread from Greece more…

Overall EUR decline

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro is carving its way down. Our supposition that Friday would be quiet proved to be true for all markets except for the euro. The slack trading in most exchanges due to the absence of important news was accompanied by steady sales in the market of periphery sovereign EU bonds. And when the yield of Spanish 10yr bonds exceeded 7% and that of Italian bonds reached 6%, the selling of the euro became more dynamic. The maximal yield of Spanish bonds was just a step away from the record level in the history of the euro zone – 7.284% against more…

Markets listlessly correct after this week’s growth

By GG Analyst in Reviews 0 Comment

EUR/USD

The dashing march of stock exchanges is fading away by the end of the week, which in fact can boast the strongest growth since last January. As has already been mentioned in our previous reviews, good corporate reports helped the markets, favourably telling on the risk demand. Yet the single currency is enjoying just a nominal growth after the drop down to 2yr lows against the dollar. A sequence of ascending highs and lows in EUR/USD is good in itself, but still it is a very slack dynamics. By now the common currency hasn’t managed to make any gains against the more…

Bernanke promised no recession

By GG Analyst in Reviews 0 Comment

EUR/USD

More often than not the semiannual reports of the Fed’s chairman look like one and the same text repeated twice, first before the Senate Committee, then – before the Congress. However, yesterday the markets found something new and positive in the commentary of Bernanke. He preserved the cautious tone, but added that no new recession was expected in the country in the near future. This proved to be enough for the rally. As we know from the experience of Tuesday, if the incentive had been much weaker,  it would have still happened, as the markets are now drawing the positive from more…

Bernanke disappoints, corporate reports inspire

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke didn’t put forward any proposal to the markets, but the latter weren’t much upset because of that.  Addressing the Congress with the Semiannual Monetary Policy Report, the Fed’s head highlighted rather gloomy perspectives of the American economy, but kept the tone of careful scrutiny. His speech was rather retrospective and alluding to the previous commentaries of the CB than prospective, that is pointing out the future of the policy. Remember that at the June meeting FOMC decided for the extension of Operation Twist (exchange of short-term bonds for long-term bonds) before the end of the year. Then in the June more…