An opportunity for the rate cut in EU

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is still in the downtrend. On Friday EURUSD was depreciating. At some point its quotes went below 1.30 and now the pair is trading right at this level. Thus, already now the decline in the pair is deeper than at the beginning of the year. The dollar index is at the highest level for the last 6 months. Yet, it’s worth mentioning that in August and July the index was supported by decline of the euro. Now support is coming from other currencies (the yen, pound, Loonie, Aussie), while the euro feels quite well. However, in view of more…

Bernanke knows how to support the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke said everything that was necessary to inspire confidence in the markets. At times it is very difficult to understand whether he got into the markets’ trap ( as just a day before he delivered his speech the markets had suffered the sharpest decline in the last few months) or really remains ultra-dovish, though his policy is somewhat warped in some markets. So, Ben Bernanke, delivering a semiannual testimony before the Senate Banking Committee, pointed out the necessity to preserve the stimulating course of the monetary policy. It dispelled the fears which arose after the FOMC’s meeting minutes in January. The more…

Italy pushed down the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

Last night we learnt the preliminary results of elections in Italy. According to these data, there’s no clear winner who would form the government on his own. As is often the case in the complicated economic situation, populism is what electors, exhausted by economic slowdown and austerity,  particularly favour. Concerns that the government can be formed by the anti-European coalition oppressed the markets yesterday evening. The euro quickly lost all its polish, depreciating against most of its counterparts. The systematic selling took EURUSD from the intraday high of 1.3318 to the daily low of 1.3047. Last week we mentioned it many more…

Here comes the old trend

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency feels quite well at the beginning of the week. With the yen and pound being sold, the euro remains the single alternative to the dollar. Again the euro is purchased when the US dollar is quite strong. The major risk for the single currency is posed by elections of the top leadership in the southern countries. The first results of the parliamentary elections in Italy will come today after all polling stations are closed at 2 pm (GMT). Different surveys offer different outcomes:  some speak about the narrow win of Pierluigi Bersani’s democratic party, others think that the more…

A respite after the slaughter

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency which was one of the most stable currencies since the beginning of the year, was falling against a great number of markets yesterday. It’s not all about increase in demand for safe assets and the dollar, which followed the Fed’s meeting minutes. The euro is influenced by inner factors. Yesterday’s preliminary stats on the February PMI failed to meet the expectations. The Services PMI declined from 55.7 to 54.1 against the forecasted decrease to 55.5. The Manufacturing PMI seems to have resumed growing (now the index is at 50.1 whereas 50.0 would have shown retention of the rate more…