Good Friday for the euro?

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency rewrote its local lows and went sideways on very thin volumeless trading. On Thursday EUR/USD went down to 1.3034 at the beginning of the active US session, but then it moved sideways. Now the currency is quoted at 1.3070. It’s often the case that a day before the payrolls release volatility abandons the markets, and traders place large orders at the current levels. But today the most part of Europe is getting ready for the coming Easter, so the markets are almost completely deprived of volume. Very often the trend, which has been dominating the markets over more…

Fed’s cautiousness about further incentives triggers the dollar rally

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed’s minutes published yesterday afternoon produced a dramatic influence on the market. They made it clear that the Fed is now less inclined to provide further incentives for the economy. Speculators immediately reacted to that, having started to buy dollars and sell risky assets and currencies. As a result, the single currency, for example, sank from 1,3340 to 1,3215 in an hour. During the Asian session sales continued, which brought the pair below 1,32. Exactly the soft Fed’s policy, which doesn’t fully fit the current circumstances, is called the impetus of the 30% rally in the stock markets since last more…

European bears, American bulls

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s great when officials pay their attention to the same figures as analysts do. Like was mentioned yesterday, although filling of the European banks with liquidity has helped to save the regional financial system from complete collapse, it still hasn’t reached the ultimate goal that Draghi talked about. Namely, it hasn’t managed to increase lending to the business and household sectors. However, as the ECB’s vice-president quite unexpectedly put in his speech, the Bank didn’t pursue the goal of supporting lending in the region. It’s a bit surprising. At the same time, the situation in Spain is becoming tenser and tenser. more…

Has ECB’s liguidity reversed the falling lending trend?

By GG Analyst in Reviews 0 Comment

EUR/USD

As reported in the press, the European leaders are considering the possible extending of bailout funds. Released at the end of the day, this news managed to restore confidence in the markets and hold the euro back from falling. As a result, EUR/USD is trading evenly at the same level as a day ago, around 1,3310. Not very prominent, but quite alarming news came in yesterday from the ECB. As shown in the regular statistics, M3 Money Supply grew from 2,5% to 2,8% in February. It indicates the reversal from the terrible figures of December and accounts for the ECB’s liquidity more…

Markets climb extremely high to launch correction next

By GG Analyst in Reviews 0 Comment

EUR/USD

Markets cracked under their own weight and after an impressive rally on Monday launched a deep correction. Formally, the sales were triggered by a dramatic deterioration of the consumer confidence, recorded by Conference Board. In March the figure made 70.2 against 71.6 a month earlier. Besides, the worsening was mainly caused by ongoing concerns of the Americans about the employment situation in the country. Remember that just a few days ago everyone saw only positive changes in this sector and drew the parallel with the figures at the start of recession? Of course, the labour market issue may pale into significance more…