Expecting RBNZ tightening and BOJ stimulus

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we spoke about growing signs of a reversal in the pair. Though it was a quiet day yesterday and the single currency even went off the local lows, we are now only firmer in our belief. Yesterday’s move from 1.3506 up to 1.3560 was nothing more than a correction after the impressive decline on Friday. Since neither Friday nor yesterday brought any important news, which would have accounted for the movement of the euro/dollar, the latter should be treated from the technical point of view. The drop by more than a figure, which was then followed by a proper pullback more…

Friday’s fall of the dollar – is it a signal?

By GG Analyst in Reviews 0 Comment

EUR/USD

The upward move, which we described in our Friday’s review, was just the beginning of the drama that developed further. The single currency didn’t have a single black candlestick till 13 GMT, closing positive all the time. As expected under such conditions, the following upsurges were stronger than the preceding ones. The pair got exhausted already at 1.3891. By then it had already made 70 pips in one direction and almost 30pips in the opposite one over 15 minutes. Technically, these are the highest levels since late 2011. And from a strictly technical point of view, Friday’s move opens the way more…

Bulls’ spurt

By GG Analyst in Reviews 0 Comment

EUR/USD

Despite the strong domestic statistics, the American currency still feels pressured. Nevertheless, the pressure weighs not only upon the US currency, but also on other safe assets. The yen and franc are suffering and the stock markets keep demonstrating impressive growth. This surge of optimism has been caused by the news that the US employment market is doing well. The weekly unemployment claims have reduced by 42K to 338K instead of growing to 380. The forecasters have made a serious mistake, or probably it is all about the holiday season, when population gets less active. After all, the number of continuing more…

Outlook for 2014: The time of shocks is over

By GG Analyst in Reviews 0 Comment

EUR/USD

Let’s outline the prospects of the major currency pairs in the coming year. The euro performed well in the last quarter, considerably appreciating against the dollar and the yen. Even against the sterling its decline was not as strong as it could have been. And if we include here the rate cut by the ECB in November, the current strength of the single currency looks really mysterious. We think that EURUSD is getting support from the EU banks, which store liquidity on their balance sheets to get stronger by the time of stress tests. The improved sentiment indicators in the region more…

Forex is getting quiet after strong fluctuations

By GG Analyst in Reviews 0 Comment

EUR/USD

Quite naturally the single currency was suffering losses in the second half of the previous week. It was a result of the Fed’s decision to cut the monthly purchases by $10bln to 75bln. Eventually, EURUSD fell from 1.3810 to 1.3620. It seems that at that level players were purchasing the single currency within the bounds of a short-term profit taking. The previous week was the last full week of the year. This week the market liquidity will be limited before the holidays and right after them in the expectation of New Year’s Day. The end of the last week, when the more…