EUR skips the short-covering rally, for the time being

By GG Analyst in Reviews 0 Comment

EUR/USD

The correction bounce of the euro couldn’t last for long on Monday. Already by the end of the day the pair sank to its 2-year lows and closed out the day around 1.2530, where it keeps trading today. Meanwhile the markets are showing a slight increase. However, the current trend has hardly been triggered by growth in risk demand. Apparently, various funds are involved in rebalancing of their portfolios, collecting cheap stocks in accord with their trading strategies. That’s why the current bounce in the markets isn’t very helpful for the euro. The ongoing concerns around Greece and the Spanish banking more…

Buying on dips?

By GG Analyst in Reviews 0 Comment

EUR/USD

They say that the most successful deals to buy stocks are made when the markets are quaking with fear and the forecasts differ only in the shades of black. Last week it seemed that the American stock exchange was involved in that very buying on the dips. But it should be mentioned that at the same time the euro and high-beta currencies hit new local lows. Against our expectations, speculators decided to make the most of the decline last week, thus triggering further sales on Friday. The euro sank close to 1.25. The markets first spread the rumour that Greece would more…

While Europe is living a nightmare, America … doesn’t care

By GG Analyst in Reviews 0 Comment

EUR/USD

Interesting enough, when America’s affairs are in a dreadful state, the whole world prays for mercy, but when the whole world goes to pieces, the States doesn’t seem to care at all. The American S&P hasn’t managed to perform any impressive bounce since the middle of the week, but still keeps edging up steadily. Meanwhile, Asian stocks are posting 5-week lows and the single currency doesn’t have enough strength to recover from the sales yet. For three consecutive days certain stabilization in active European trading has been followed by the euro sales at the end of the American session. Leaving aside more…

Due south

By GG Analyst in Reviews 0 Comment

EUR/USD

It didn’t take much time for the market participants to rebalance their positions, and yesterday the common currency was again pushed down to new local lows. This time it was much easier to break through the defence line, once really strong at 1.2620. Last week the attempt was foiled just like in January 2012 and at the end of August 2010. The talks of the EU politicians about the development of the Greek exit plan tipped the scale. Earlier from February till the end of April the consolidation was mainly held within the corridor above 1.30 and below 1.34. Something like more…

Just a correction, nothing more

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets cannot move in one and the same direction for long, even if there are reasons for that. Thus, Friday became the day of correction, when demand for risky assets was growing and the euro was appreciating since the start of European trading. Moreover, the single currency also managed to extend its modest gains during the Asian session. Earlier today EUR/USD successfully recovered from Friday’s lows of 1.2640 to 1.2810. It’s quite possible that being under high pressure since the beginning of the month the euro will try to close out this trading day positive as well. This run of more…