Changeable fortune

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro got a hard blow yesterday, losing 90pips during the day. The selling was caused by  Coeure’s speech, which pointed out that the BOE’s officials seriously considered setting a negative deposit rate at the last meeting. Besides, we shouldn’t forget about technical factors. The pounds growth triggered by the BOE’s comments broke the short-term uptrend in EURGBP, which eventually spilt over into selling of the euro against the pound, observed in other pairs as well. The euro’s pullback finally brought the currency back into the downtrend, which has already been frequently mentioned in our reviews. Before that on Tuesday  we more…

USD got weaker as markets continued to pull back

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment statistics again fell short of expectations. On Friday it was reported that in January non-farm employment grew by 113K after increasing by 75K a month before. BLS pins some blame on bad weather and in this case the rates may be quite better next month. Yet, a month ago there were similar opinions, which eventually proved to be wrong. The good news is that the traditional revision of statistics added over half a million to the employment rate and the last year’s rate was revised up by 87K in total. The unemployment rate has again declined and now more…

EUR is among safety assets

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the stock markets suffered a hard blow. The worn-out exchanges of the developing countries were knocked down. Most of them lost more than 2% over the day. Now we have quite an unpleasant situation on hand. The US Fed ignored the warning signals of the slowdown in the business activity and cut the QE programme last week. Thus, the markets are now sure that the only thing which can prevent the Fed from taking a similar step in the future is utterly disappointing statistics from the USA. Against this background the US investors, anticipating further cuts,  very painfully reacted to more…

CPI slowdown – a cause to cut the ECB’s rate

By GG Analyst in Reviews 0 Comment

EUR/USD

As has already been written, breaking through 1.3500 can be regarded as confirmation of the downtrend in EURUSD. It is quite remarkable that the pair, ignoring the fundamental indicators lately, has finally found one important indicator, which managed to shift the balance of forces. We mean inflation statistics. How come that this generally well-predicted indicator, which has brought no surprises so far and hasn’t affected the monetary policy since the beginning of the crisis, now produces such a great impact on the pair? The thing is that the peripheral countries of the eurozone suffer deflation, besides the current monetary policy remains more…

Attack of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency depreciated against the dollar yesterday. Having started Thursday at 1.3660, EURUSD finished it at 1.3550. It fell right to the area, where it had begun its upsurge a week before on the release of strong PMI stats. In our opinion, that movement was nothing more than washing out of short positions. Too many spoke about strength of the dollar on the threshold of the Fed’s meeting. In such cases big players often announce hunting for stops and kick a part of small investors off the market. It gives an opportunity to sell expensive or buy cheap, depending on more…