Timid attempts of EUR to go up

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock market is hitting new highs, albeit not as confidently as before. This craving of investors for the yield affects EURUSD. We can’t say that it will give rise to an ascending trend, but it is quite enough not to allow a drop in the pair. Last night the pair tried to break above 1.29. It failed, but the current position is a figure above Friday’s low. There aren’t any serious moves due to slack trading on Monday (most European countries had holidays) and absence of important macroeconomic news. Today this news vacuum in the euro zone and the more…

Gradual, but steady growth of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Since the beginning of May the US dollar has been on the rise. In the previous years it was accompanied by the turn of stock markets from growth to decline. However, this time the situation is a bit different. The single currency lost about 3.5% from May 1 till last Friday and trading is now held close to the lows of March. If the markets are not strong enough to break lower, the next support level will be seen at 1.2650, i.e. the lows of November. This would be a favourable outcome for the EU economy, which is striving to get more…

Inflation slowdown vs bubble risk

By GG Analyst in Reviews 0 Comment

EUR/USD

The dollar keeps retreating, and stock exchanges across the globe are hitting record levels.  Thus, S&P once again set a new historic record, MSCI is finishing April with a 4.4% growth, which is the best rate since June 2012. And TOPIX is heading for April’s end with the best results for the month since 1999. This optimism is wholly rooted in unevenness of the US economic growth. While consumption and the housing market  are doing well, inflation remains low. Besides, this problem is acute both for Europe and United States. The Preliminary CPI for Germany, which was released yesterday, showed that more…

USD’s retracing at the beginning of an important week

By GG Analyst in Reviews 0 Comment

EUR/USD

We have again stepped into one of these eventful weeks at the beginning of the month, when all the three news causing highest volatility come one after another. On Wednesday we’ll try to make out from the commentary to the Committee’s meeting if there is any change in the Fed’s rhetoric.  On Thursday all eyes will be riveted on the ECB’s interest rate decision, where a cut to 0.5% is expected. Finally on Friday we will deal with payrolls. The market positioning before these events accounts for most market on the week’s opening. The dollar is losing its ground in Asia, more…

British GDP surprised, will it be the same with the US one?

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday traders took advantage of the dollar’s weakness to sell the euro at a higher price. As we said, optimism in connection with higher certainty about the political situation in Italy proved to be short-lived. The rate cut expected next week is of much greater importance for the markets. But we shouldn’t also forget the factors which may force politicians to take this measure. They are contraction of business and consumer activity and decline of inflation. These factors combined made yesterday’s growth of EURUSD very unsteady. On the way to 1.31 sellers came into play and for a couple of hours more…