Fear has a thousand eyes

By GG Analyst in Reviews 0 Comment

EUR/USD

On Friday and Monday the markets went bearish on the concerns around the Spanish bond auction, which eventually ran smoothly. Spain managed to sell €3.18 bln of bills, so the demand was satisfying. And though the yield grew, the markets still favoured the results of the auction, which is confirmed by the 15 bp decline of the CDS price. Yet, we look forward to Thursday, when long-term bonds will be auctioned off. The German ZEW Economic Sentiment performed a pleasant growth. Instead of going down from 22.3 to 19 as forecasted the indicator grew from 37.6 to 40.7, which is the more…

Asian bears against American bulls

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency with credit tested the 1.30 level yesterday. The bears didn’t manage to push down the currency in Asian and European trading hours. Meanwhile Americans were already buying the euro, having driven EUR/USD a safe distance up. The euro jumped up to 1.3150, but this morning Asians resumed their attempts to press the pair, which is now trading at 1.31. The Asians’ caution and demand for safety look quite natural. The nations with the current account surplus are in constant search of promising investment directions. And now the profitability of investments in the euro is rather doubtful. In fact, more…

The euro retests 1.30, demand for safety grows

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s hard to decide what to do with the dollar when a batch of good news is followed by a series of poor figures. The dollar was actively bought after the Fed’s policy had been revised in favour of greater strictness, but then the poor news on employment and inflation added to the tough rhetoric from the FOMC officials. That uncertainty made the euro/dollar fluctuate between 1.30 – 1.31. In the middle of the week the pair attempted to draw the reversal pattern on the speeches of the CB’s officials which boosted the market growth and consequently supported the demand for more…

The European politicians say that the worst is over, but banks feel none the better for it

By GG Analyst in Reviews 0 Comment

EUR/USD

On the first full trading day after the long holidays markets failed to fight down the across-the-board pessimism and declined by over 1.5 % on average. Actually, markets didn’t have much choice due to the rising fears of another aggravation of the situation in Europe. In addition, hope for improvement of the exterior affairs also fades, as China’s and America’s economies are now slowing down as well. Under such circumstances all eyes are turned to the European politicians, who are looking for means to improve the market sentiment. For instance, the spokesman of the German ministry of finance stated yesterday that more…

The weekend stole volatility

By GG Analyst in Reviews 0 Comment

EUR/USD

To discern the market reaction to Friday’s payrolls you’ll probably have to use a microscope.  It’s somewhat surprising as usually the release of the figure causes much movement in the markets and can even set the trend for the further month. Apart from the strong market reaction the indicator is also famous for its unpredictability: there is always a range of diverging forecasts and a wide discrepancy markets turned out mistaken in their estimates. The released data showed that employment growth made only 120K against the forecasted “above 200K”. According to the updated statistics the employment growth peaked in January, when more…