Correction being over, the market’s moving on

By GG Analyst in Reviews 0 Comment

EUR/USD

The market didn’t disappoint our expectations – some instruments stopped retracing. The stock exchanges were hitting their 5yr highs, EURUSD again threatens to break above 1.34. Now trading is held just a step away from these levels. As two weeks ago it was caused by rumours about quite a good demand at the Spanish auctions. In a couple of hours the information proved to be true, which further spurred the growth. However, we insist that it is just a cause, the real reason is different. Traders finished the phase of consolidation after the preceding big rally, reshuffled their positions and got more…

The Big Picture

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday EURUSD spent the whole day between 1.3260 and 1.3320. As we said earlier, the markets are set for consolidation after the strong growth, however it’s really hard to find a reason to purchase the dollar. The Treasury has sharply decreased borrowing in the markets, which in its turn makes the need to purchase the dollar less strong. Besides, the EU peripheral debt markets are again attracting capital since yields are now back to their normal levels. In the news background Germany’s economic outlook for this and next year is of interest. If the outlook is correct, the EU locomotive will more…

Europe’s awakening

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s fluctuations were really impressive. Excluding the yen with the political nature of its rally, the market was squeezed in narrow daily ranges for a long time. It seemed that already nothing could rock that boat. But yesterday the good auction results in Spain were enough to stir up the market. Draghi’s concentration on the economic indicators instead of the financial sector also made its contribution. Now for details. The yield of Spanish 5yr bonds fell down below 4% yesterday in comparison with the peak of 6.46% in July. The bid-to-cover ratio was also at a quite favourable level of 2.07. more…

Europe is weak

By GG Analyst in Reviews 0 Comment

EUR/USD

The beginning of the accounting period seems to be quite reassuring. US aluminium giant Alcoa has posted a better-than-expected profit and expressed moderate optimism that demand will continue to grow in 2013. It has gradually moved the stock market from the middle of the trading range to its upper bound. Turning to Forex, here EU currencies are trailing much behind their counterparts. Yesterday EUR again failed to consolidate above 1.31. The pair had been pushed down before it even got above the mark. Apparently, the euro is being pressurized. It is rumoured that the reason is asset sales by sovereign wealth more…

Is it the end of consolidation?

By GG Analyst in Reviews 0 Comment

Yesterday afternoon the pressure on the single currency grew high. However, it wasn’t strong enough to endanger the support of 1.30. The reason is absolutely unimpressive news on the EU economy. First of all, Germany’s trade surplus is on the decline. The country had a great advantage in the second and third quarters due to depreciating of the euro. But the return of the euro above 1.30 reduced competitiveness of the European goods in the export markets. Also the continuing austerity inside the region keeps putting pressure on the domestic demand. Later the unemployment stats were released. As expected, unemployment hit more…