Don’t buy into the rumours

By GG Analyst in Reviews 0 Comment

EUR/USD

Almost all the economists surveyed by Bloomberg (48 out of 49) expect expansion of the QE programme. Many believe that this measure will compensate the size of the expiring Operation Twist. It means that the market is now in anticipation of the asset purchase programme being extended from $40bln up to $85bln monthly. This turn of events is quite possible and we spoke about that before (remember our comments after the payrolls), however it has already been built into the rates and therefore is of little interest now. There is one more variant, also worth of considering. A couple of weeks more…

The higher we grow, the faster we fall

By GG Analyst in Reviews 0 Comment

EUR/USD

The bears are trying to grab the markets in their paws. Yesterday the common currency didn’t have even a single chance to test 1.3140. The market reversed at 1.3125. Yet, it doesn’t change anything now. As has already been mentioned, the recent sharp upsurge from time to time stumbled upon the short-term selling, after which players again started buying the single currency. But this time the decline is smoother and there isn’t any sound reason on the euro’s side. Now it’s all about the dollar. The latter started appreciating in many asset classes. And largely it is a result of the more…

Unsteady upturn

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets keep going up, albeit rather unsteadily. The common currency is systematically purchased against the dollar. This week the slope of the curve is equal to the one, which was observed in the previous three weeks. Yet, so far there hasn’t been even a single attempt to break lower, as it was one, two and three weeks ago. However, we should mention that opportunities for such a retracement will be quite many in the coming days. The major risk is posed by the ECB’s meeting with the further press-conference of Draghi, scheduled for tomorrow. Regarding the USA, the ADP employment more…

Risk demand is up, however not equally for all the currencies

By GG Analyst in Reviews 0 Comment

EUR/USD

The beginning of November was quite a hard time for stocks and risky assets. However, since the middle of the month the situation began to change for the better. Eventually, the S&P 500 index grew by 0.29%. It’s a petty growth, but taking into account the 6% drop in the middle of November we can speak about a rather good demand for risky assets by the beginning of December. The November sale pushed the stock to the levels where they again became attractive for buyers. The currency market, however, lacks this consistency. EURUSD got above 1.30 on the last trading day more…

Another rise in the hope of the deal

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets were quite brisk yesterday. Behind that again were Obama’s comments on the fiscal cliff issue. The president urges to complete the deal before Christmas. And now it seems quite possible as one of the republican congressmen expressed his support for raising taxes for the rich, but on condition that the tax benefits for those who earn less than $250K a year will be preserved. Such news stopped selling of risky assets. In particular EURUSD dropped as low as 1.2880 and by the end of the trading day had grown already to 1.2960. Now the market is trading in a more…