Perhaps markets have already got tired, eh?

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday afternoon the euro continued storming new peaks once the dollar had weakened after Fed’s allusions to the further QE. At some point the single currency rose to 1.3180, but climbed down by the end of the day on the stock market correction. It is noteworthy that stocks of financial companies suffered a greater decline yesterday than any other groups. They are the first to be influenced by changing sentiments. Now the markets seem to be tired of the vigorous upward march, observed from mid-December. If the markets show a decline or stop growing, it may again bring market participants to more…

Fed’s decision to keep zero-rates until the end of 2014 triggers a carry trade rally

By GG Analyst in Reviews 0 Comment

EUR/USD

The Federal Reserve surprised the markets with the promise to keep the rates at zero until the end of 2014. Before that the Fed had claimed to keep the rates there until mid 2013. This news sparked off a rally in the markets. The dollar fell across the entire spectrum of assets as well as against other major currencies. The euro closed the day above 1.31, where it keeps trading now. Besides, the rally in the stock markets is still at full tilt – it has brought S&P to the end-July levels, which the stock markets have unsuccessfully tried to break more…

Will Fed’s greater transparency support the markets?

By GG Analyst in Reviews 0 Comment

EUR/USD

In its global economic forecasts the International Monetary Fund tries to intimidate the world and the European leaders in particular. The IMF expects the GDP growth to make 3.3% in 2012, but if the Old World wallows in new grave problems, the GDP is forecasted to be only 1.3%. In fact, such slackening is likely to be caused by the crisis spreading far beyond the euro area and hampering the growth of the emerging countries. Specifically to the eurozone IMF’s chief economist Blanchard promised a 0.5% decline at year-end. Of course, that warning should be viewed in the context of the more…

European Debt-loaded Countries Calling for Mercy

By GG Analyst in Reviews 0 Comment

EUR/USD

The European finance ministers refused the offer of Greek private debt holders. The country wouldn’t agree to the coupon payment of more than 3.5% while the Institute of International Finance set the minimum coupon level at 4%. The EU and the IMF take up the part of Greece, so the latter looks stronger. The essence of the problem is that the suffering European economies are likely to be in a dejected condition for many years to come. Greece’s GDP has been declining for five years in a row and will keep falling further, as debt payment makes the country to tighten more…

So Far No Certainty for Greece– Euro Falls

By GG Analyst in Reviews 0 Comment

EUR/USD

As expected, negotiations over the Greek debt-restructuring have proved to be not an easy matter. As has been reported, there isn’t any certain agreement on the issue so far. At the opening of the week the euro fell to 1.2878 against Friday’s closing level of 1.2930. The deteriorating economic environment now requires more than a 50% haircut from private investors. Lenders, in their turn, claim that they offer the maximum of what they can give. Not long ago this weekend was considered to be the deadline for the agreement to be reached. But as happened many times before, the policymakers have more…