Premier being introduced, EUR breathed a sigh of relief

By GG Analyst in Reviews 0 Comment

EUR/USD

The European currencies are not going to yield without a struggle. Last night both the euro and the pound were doing well against the dollar, but for different reasons. Let’s have a closer look at them. At first sight it looks really surprising that amid the growing fuss about the possible rate cut by the ECB next week and also almost right after the release of disappointing statistics on the business activity (PMI, ZEW, Ifo) the euro is able to demonstrate growth. However, it should be taken into account that the rate cut by another quarter of a percent will hardly more…

Feeble attempts of EUR to decline

By GG Analyst in Reviews 0 Comment

EUR/USD

The market still cannot decide on the direction. EURUSD continues to flirt with 1.30, though it actually has been above it since April 8. From the technical side, the growth perspectives of the pair are darkened by a strong bearish candlestick of April 17. Now charts show a kind of the “head and shoulders” reversal pattern, which can be confirmed together with breaking through 1.30, if it takes place in the near future. This move may be targeted at 1.2750, which at the same time can become the 5-month low and eventually spur sales in the pair. The US news background more…

Sudden demand for risk

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was purchased against the news yesterday. It means that the initial reaction to the poor ZEW quickly turned into purchases of the euro. As a result, the market is now consolidating between 1.3170-80, while a day ago it was close to 1.3040. Apparently, the market is focused on selling the dollar rather than on buying the euro. Indirectly risk demand was maintained by the recovery of markets after the drop a day before. Speaking about the German indicator of economic sentiment, in April it makes just 36.3 against the expected 41.5. It is a cyclic indicator and such more…

Bearish Gold market

By GG Analyst in Reviews 0 Comment

EUR/USD

Friday’s correction in the markets must have made many feel nervous: at some moment EURUSD sank down by a figure from the highs of the Asian session – to 1.3030. Anyway, by the end of the trading day the single currency had managed not only to recoup its losses, but also hit a new intraday high. The bulls managed to close the week above 1.31. Yet the bears got somewhat stronger already during today’s session in Asia. Almost the whole package of China’s statistics proved to have fallen short of expectations, which forced the markets  to hastily liquidate risky positions and more…

What is stronger: the Fed’s printing press or the EU crisis?

By GG Analyst in Reviews 0 Comment

EUR/USD

The sure upward march of the US stock exchanges yesterday wasn’t taken up by Forex. From the technical side we see that yesterday the single currency was retracing after the preceding growth from 1.2750 to 1.3120. It’s however possible that the situation is quite the opposite and that growth was none other than a retracement (it would be the 61.8% Fibonacci retracement after the drop from 1.37). Since from this viewpoint the situation looks controversial, let’s turn to the fundamental factors. The single currency enjoys rather poor economic indicators, but the ECB firmly resists flooding the economy with money by purchasing more…