Fed’s meeting minutes triggered selling in the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed’s meeting minutes somewhat cooled the markets’ adour about the further QE. From them it became clear that some members of the FOMC plan to table revision of  the monthly  size of bond purchases already in March. Probably, March is not the best time since it may start with automatic cuts of government spending in the USA. The battle for the fiscal cliff was won by Obama, rescheduling of the debt ceiling discussion is also his victory. Yet, no matter for how long a deadline is extended, dealing with these burning issues cannot be escaped after all. All this again more…

Stock market optimism is in Forex’s favour

By GG Analyst in Reviews 0 Comment

EUR/USD

One of the clearest signs of optimism in business is increase in M&A deals. The companies, which have access to relatively cheap loans and which preferred not to invest when the situation was pretty much uncertain, now feel that the world is changing. It seems that they started to open their sacks with cash more and more eagerly. Of course, we are talking about strong companies as the crisis has left either winners or firms with good brands but less favourable access to money. The latter are being hunted with enthusiasm now. News about increase in activity of this kind gives more…

Take your profits and watch from the sidelines

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency had quite a hard day Yesterday. While the daily open was at 1.3450, the daily low was reported a bit above 1.33. It was largely due to the poor stats on the EU economy. In the fourth quarter the region’s economy shrank by 0.6%. The same slowdown was experienced by Germany. The French economy shed 0.3%, but it was growing very slowly last year and, as a result, the yearly decline made 0.3%. Italy’s economy lost 0.9% and the yearly rate made huge – 2.7%. Portugal stroke the ground: -1.8% in 4Q after the decline by 0.9% in more…

The bears attack

By GG Analyst in Reviews 0 Comment

EUR/USD

Triggering of stop-orders in EURUSD drove the pair to 1.3519 yesterday, but at these levels sellers entered the game. As a result, the daily close was slightly negative, 1.3450, but now we can observe some growth in the dollar, which pushed the rates even lower, to 1.34. In the charts we see that yesterday’s reversal is absolutely identical to the situation on February 7. The same downward wave took the pair from 1.357 down to 1.335. If this time the decline is of the same scale, we may see EURUSD somewhere between 1.3250 and 1.3270. Yesterday’s upsurge of the single currency more…

G7 provokes profit-squeeze in the recent trends

By GG Analyst in Reviews 0 Comment

EUR/USD

The biggest news yesterday was the joint statement made by the finance ministers and CB heads of G7 member-countries. The leaders managed to “push” into one abstract of the text not only justification for their measures to weaken the domestic currencies, but also the hope that all the countries of this mighty handful will keep a low profile. The analysts quickly commented that they were very much upset by such reserved statements and no open call for action. It’s hard to say what the markets were expecting then as all the previous comments of G7 andG20 were of the same kind. more…