Correction or reversal?

By GG Analyst in Reviews 0 Comment

EUR/USD

Those, who missed volatility and interesting trends in the second half of the previous year, now should be happy about the current state of things in Forex. The single currency rose by 2 figures up to the 15-month high last week and this week for less than 2 days again dipped below 1.34. In January the pair was consolidating below this level for about two weeks, while breaking through the level promised a powerful and continuous rally. The rally proved to be relatively powerful, but not continuous. Back then we already noted that the single currency was appreciating against the dollar more…

Asynchrony of markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The payrolls were somewhat dubious. On the one hand, the January data proved to be worse than expected, but on the other hand the rates of many previous months were revised up. Thus, it turned out that a year ago, in January 2012, the US labour market grew by 311K, while in January 2013 it added just 157K, i.e. twice as little. This growth rate lags behind the natural population growth, so it’s not surprising that the unemployment should rise from 7.8% to 7.9%. The earnings keep growing at a pace slightly higher than the inflation rate, demonstrating 2.1% for earnings more…

Broad USD decline

By GG Analyst in Reviews 0 Comment

EUR/USD

The dollar’s antirally continues. It is a relatively new trend, as earlier the euro was growing against the dollar almost alone. Now appreciation of risk-sensitive assets is getting all-round. Yesterday the euro bears were defending fiercely and didn’t give up 1.36. But in the Asian session today purchasing of the euro became more intense. That was largely caused by growth in EURJPY, which has been on the rise for 11 out of the recent 12 weeks and is now relentlessly sweeping stops before itself. Yet we shouldn’t think that the euro itself has nothing to do with it. Yesterday’s employment data more…

The US economic downturn. The worst is yet to come

By GG Analyst in Reviews 0 Comment

EUR/USD

The bulls finally broke through 1.35 yesterday and pushed the pair up by almost a figure. Already at the end of the New York session there were bold attempts to break through 1.36, but it wasn’t that easy. Today the pair feels like correcting the preceding growth, now being at 1.3550. The market participants seem to be indifferent to the economic news. Neither the favourable report on the US employment by ADP nor the dreadful GDP statistics put an end to the uptrend.  First, there was good news from Europe – the consumer sentiment and business confidence got better. The index more…

EUR is nearing 1.35, will it hold there for long?

By GG Analyst in Reviews 0 Comment

EUR/USD

The stock markets after some hesitation continued moving up to the new highs. The risk-sensitive FX currencies followed them. EURUSD is trading close to 1.35. Yesterday’s attempts to break through this level during the US session were halted by heavy selling. The difference between yesterday’s growth and the consolidation phase of the euro is that the US currency is depreciating across the board. Thus, what we see is weakness of the US currency against the background of global optimism, rather than strength of the euro caused by the capital repatriation on the growing confidence in the EU periphery. Unlike the beginning more…