FOMC hasn’t clarified the prospects

By GG Analyst in Reviews 0 Comment

EUR/USD

The US Federal Open Market Committee tried to avoid in its comments clear hints at the time when tapering would start. Yet, absence of evident concerns regarding the economy let bears gain the upper hand. Stock markets received a severe blow, which is now echoing in the Asian and European markets. S&P 500 shifted away from the global highs, losing more than a percent. Straight after the release EURUSD dropped by 85 pips, below 1.37, where it remains now by the beginning of the EU session. The Fed again expressed its desire to see stronger signs of economic growth before withdrawing more…

USD correction. Day two

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the US dollar was evenly appreciating during the day. The bulls’ attack, which drove EURUSD from 1.3755 to 1.3815, proved to be short-term. It occurred when ECB Governing Council member Ewald Nowotny told MNI that the ECB would have to put up with the strong euro as it doesn’t have any tools to combat it. Soon the downtrend resumed and the pair closed the day at 1.3740. Now the downward movement is still going on and the local low has been set at 1.3730. Quite likely, the bearish attack will be getting momentum. The dollar’s appreciation is mainly connected with more…

Correction to precede the Fed’s commentary

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock markets have halted their upsurge and Forex has recouped some of the dollar’s losses. Thus, EURUSD declined by 15pips to 1.3785 over the day, thus breaking the series of ascents. It is also remarkable that bears tried to break lower and hit a 5-day low at 1.3768 during the Asian session. The market cautiousness can be attributed to closeness of the FOMC’s meeting. It is to start today and tomorrow we will learn the decision. The market participants do not expect any changes, but are cautiously getting ready to hear the new commentary of the Fed. Some, including more…

CBs on standby

By GG Analyst in Reviews 0 Comment

EUR/USD

Having hit a new high, EURUSD has again stalled. Now the market is consolidating around 1.3800, a week ago it was 1.3650 and before that from September 19 till October 17 trading had been held at 1.3500. The same picture, though at a larger scale, was observed in the market during the superrally of 2005-2008. Then the market was pushed by the difference in the ECB’s and Fed’s policies. The former was extremely vigilant regarding inflation under the guidance of Jean-Claude Trichet. The latter had already fallen into the trap of a housing and commodity bubble, when on the one hand more…

EUR is moving up regardless of economic slowdown

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency hit fresh two-year highs against the dollar. Yesterday’s high made 1.3824. It is remarkable that the market should be so persistent, purchasing the euro. The thing is that Flash PMIs for France, Germany and the whole eurozone proved to be much worse than expected. Instead of increasing the French manufacturing activity shrank even more, which is reflected in the drop of the index from 49.8 to 49.4 against the expected 50.3. In Germany the situation is a bit better, but the index still failed to meet the expectations. The Manufacturing PMI rose to 51.5 against the forecasted 51.6. more…