Bears keep putting pressure

By GG Analyst in Reviews 0 Comment

EUR/USD

Wall Street didn’t manage to recover fully after Thursday’s sellout. During the US session selling was still heavy as investors couldn’t find any support in the fresh corporate reports. The disappointment with the indicators of technology companies spread to other sectors as well. Actually, the reports fall short of the investors’ high expectations, which picture them strong enough to justify the overrated stocks and fight the negative consequences of the Fed’s policy toughening. Already now the bonds are increasing their yields, which makes them a bit more attractive, depriving the stock market of the growth potential. The single currency seems to more…

Ready to retrace

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar keeps growing and has already risen close to 1.3900. The dollar demand has been less strong this week, which is partly a result of the lower interest in the US stocks and partly – of the realization that the ECB won’t move in the direction of new incentives, while the EU economy is improving. Regarding stocks, we can see the growing confidence of investors in the inevitability of a retracement in the near future. Besides, lately the core indexes feel difficulty with growth and are trading flat, while volatility indexes have declined to the levels, speaking about a possible more…

USD falls into a nosedive

By GG Analyst in Reviews 0 Comment

EUR/USD

The risk demand showed up where no one expected it. We had thought that the meeting minutes would be tougher, but the reality proved to be quite different. FOMC is trying to move off Bernanke’s sharp limits which could become a guideline for the markets, when the Fed will raise the rate. Strictly speaking, it is not a sign of the extra-soft policy, but still doesn’t let us speak about its toughening. Thanks to it the US stock markets grew by more than a percent and the dollar got weaker across the board (except for the yen). EURUSD rose to 1.3870, more…

Futile volatility

By GG Analyst in Reviews 0 Comment

EUR/USD

The unemployment statistics proved to be relatively good, but since for the most part they met the expectations, the market didn’t see any significant volatility. The US employers increased the number of jobs by 192K in March against the consensus forecast of 199K. Against expectations, the unemployment rate remained unchanged at 6.7%, but this is not bad news as the participation rate grew from 63.0% to 63.2%. Average weekly hours grew more than expected, from 34.3 to 34.5 hr. The current rate already corresponds to the average pre-crisis rates, so we can already speak about returning to the normal workweek schedule more…

Uneven demand for risk

By GG Analyst in Reviews 0 Comment

EUR/USD

The S&P 500 BMI closed Tuesday at the record-high level. This impressive performance was a result of the easing geopolitical tension – Russia and the USA seem to have started a dialogue, which promises a dialogue between Russia and the EU in the near future, and then between the former and Ukraine. At the same time we are getting good news from the US corporations. As expected, business activity is getting back to normal after the cold winter months. In the meantime, the EU statistics were not bad either. The data on the German labour market reflected another decrease in the more…