Small Twist

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed managed to surpass the market expectations. Yesterday the FOMC announced that it would purchase the Treasury securities with remaining maturities of 6 years to 30 years and sell or redeem an equal par value of Treasury securities with remaining maturities of approximately 3 years or less. There is about $267bln of such bonds on the Fed’s balance. The first round of the programme consists in the redemption of 400bln and was to be finished by July. Yesterday’s decision is accounted for by a rather weak economic dynamics over the last few months: job growth has slowed down, spending has more…

QE, Twist or nothing?

By GG Analyst in Reviews 0 Comment

EUR/USD

Those, who ventured to stake on risk yesterday morning, must have been generously rewarded in the evening. Though at the end of Monday’s trading the single currency sank to 1.2550, already yesterday evening it found enough strength to test the 1.27 level. Today’s quotes remain close to this mark. The Fed’s meeting is ahead. In the last few days it has been widely rumoured that the FOMC will react to the weak market data with another round of Operation Twist. The major advantage of such steps over the additional purchases consists in the absence of any inflationary aftereffects. The fact that more…

And still the risk demand is growing

By GG Analyst in Reviews 0 Comment

EUR/USD

Despite the obvious improvement in the general news background, the single currency faced sales in the second half of the day yesterday. Formally it was not without reason. But the newly elected Greek government still needs to show its will to take further austerity measures. The expectations that Germany would take a less tough stance under the pressure of other G20 leaders also didn’t manage to develop into something tangible yesterday. While formerly the markets got disappointed in the results of the EU summits, now they get disappointed with the summits held by the leaders of the most influential countries of more…

A flicker of hope in the depths of despair

By GG Analyst in Reviews 0 Comment

EUR/USD

Many traders know very well that May is not the best month for buying stocks, and this year was not an exception. Yet the most interesting thing is that the crisis peaked in May not only because of the economic slowdown, but also as a result of political uncertainty. The biggest mystery surrounded Greek elections and their outcome. Given their preference to the parties supporting the EU membership and bailout Greeks have made it clear that they don’t want to be Europe’s outcasts.  Many commentators still keep estimating how favourable the EU disintegration could be in the current situation, but it more…

Hawkish central bankers?

By GG Analyst in Reviews 0 Comment

EUR/USD

Two-three months ago we took the absence of news as good news. At that time the incoming statistics often proved to be either worse than expected (on US, Australian and Chinese economies) or utterly poor (on the sovereign crisis of the euro-zone). Then in the periods of lull there still were some buyers of cheapened assets, and the situation was gradually changing from ‘positive’ into ‘moderately positive’ and eventually slipped into what we see now. The recent employment data turned out to be so poor that immediately awakened anticipations of further QE across the market. The confidence in this run of more…