Double blow to EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

The moderate buying of the single currency on Wednesday morning stumbled over the wave of sales. The growth momentum of the pair was halted at 1.3060. Roughly in the same zone there had been a reversal a day before , but this time the bears were prepared better. By the middle of trading in the USA the pair had fallen to 1.2922. There are two reasons for the bears to be that self-confident. First of all, the auctions were not a success – three of the four bonds of different maturity demonstrated a higher yield. In the meantime the yield of more…

Trim your sails to the wind

By GG Analyst in Reviews 0 Comment

EUR/USD

But for comments of Bundesbank President Jens Weidmann, the single currency would have continued to slip down yesterday. His words that the current policy of the ECB poses a threat to the monetary policy of the region have triggered a short rally in EURUSD. From the daily low of 1.2990, hit at the beginning  of trades in Europe, the pair grew to 1.3074. However, this mini-rally proved to be short-lived. Very soon eager selling brought the pair back to 1.3020. Actually, all these moves are trifle ones, but there is one fundamental moment. Today we will probably see breaking of the more…

Apart in happiness, together in grief

By GG Analyst in Reviews 0 Comment

EUR/USD

The newspapers are still savouring the Dow Jones high and nearly record levels of S&P 500, but in our opinion it’s worth paying attention to the risks now. The divergence between the stock markets and Oil, that we spoke about at the beginning of the week, also exists between the euro and the markets, albeit to a lesser extent. Generally speaking, the stock markets were swelling like a bubble thanks to cheap money from the Fed and CBs of other developed countries. Yet it doesn’t mean that  correction in the stock exchanges will necessarily make the euro grow. Quite the opposite. more…

When external factors matter more than internal ones

By GG Analyst in Reviews 0 Comment

EUR/USD

The stock markets didn’t stop at the highs they hit a day ago and, as expected, rushed to their historic highs. The Dow Jones index managed to grow by those very 40pips which separated it from that target. Formally, it is explained by China’s intention to pursue its objectives regarding the economic growth, which promises demand for commodities and a better business sentiment around the world. The former correlations again revived against this background. It means that growth of the stock markets gives rise to the rally in the commodity markets, contributes to decrease in the yield of Treasuries, but also more…

Divergence of the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stocks continued their upsurge yesterday, Dow Jones grew by 0.3%, having recouped the previous decline and is now just 0.3% from its historic high. To some extent optimism in the stock markets (and simultaneous selling of the dollar) can be justified by Janet Yellen’s promise to continue stimulation of the economy, which functions poorer than its potential allows. This optimism boosts purchases of commonly-known risk-sensitive currencies, including the euro. EURUSD formally remains in the downtrend and on Friday the decline seemed to be even faster. However, as we warned, the level of 1.30 is too important both for bulls more…