Payrolls ahead: on guaaaarrrd!

By GG Analyst in Reviews 0 Comment

EUR/USD

The current week has been mostly quiet in Forex. This may become a good signal for those who’s missing the market volatility on news about the US labour market. For more than two years the market has been generally moved by politicians’ statements and changing sentiments over the monetary policy. But this time the market is quite phlegmatic about labour statistics. In general, it is very unlikely that there will be a sharp reversal of the trend to a slow recovery process in employment. The January unemployment rate is expected to remain at 8.5% with a 150K increase in the number more…

Greek debt swap details triggered the 3rd wave of the euro short covering

By GG Analyst in Reviews 0 Comment

EUR/USD

Details of the agreement on Greece’s debt, released yesterday, had a positive impact on the single currency. According to Bloomberg, the lenders agreed to the coupon payment of 3.6% for the 30-year bonds, which is a 70% reduction of face value. There was also one more rule adopted – the warrant, which will be triggered depending on the GDP dynamics: in case of fairly good growth, debt holders will get more. Let’s face it – there is a real threat of new debt write-offs. After the unpromising start of the day with a drop to 1.3025, the euro tested the 1.32 more…

January was a good month for risks, February will be different

By GG Analyst in Reviews 0 Comment

EUR/USD

Greece convinces us more and more that it is just one ‘formal’ step away from restructuring of the 200 billion euro debt to private investors. Now it is just the time for the country to focus on reforms that will lead it out of the downward spiral and ensure its solid growth and debt solvency in the future. Lenders demand serious pension reforms and higher workforce competitiveness. If all goes well, Greece will be granted the second aid package of 130 billion later in the week which will help it to avoid an uncontrollable default in March. The Greeks may promise more…

UK and Czechs abandon the “compact”, but markets seem to be doing well with other 25 members joining it

By GG Analyst in Reviews 0 Comment

EUR/USD

25 of the 27 EU countries signed the pact over toughened fiscal discipline. Along with Britain the Czech Republic also refused to put its signature. This pact imposes semi –automated sanctions for overspending governments and brings these regulations to the level of national laws. Greek Prime Minister Lucas Papademos claimed that an agreement with private creditors would be reached before the end of the week. Exactly the same pledge had been heard many times before without its further accomplishment then. However, the markets are still able to react to the statements of European politicians. On Monday morning the single currency showed more…

Is there another disappointment impending?

By GG Analyst in Reviews 0 Comment

EUR/USD

At today’s summit the European leaders are to sign an agreement on the establishment of the permanent saving fund and balanced public budgets. However, the Greek issue is still weighing heavily on the summit participants. As news agencies report, no agreement has been reached so far during the negotiations with the private sector. Again we hear about some progress, but with such pace it is really hard to discern. On Monday investors are likely to focus on Europe and that may put certain pressure on the single currency. Moreover, it’s also possible that the euro will decline after the two-week growth. more…