EUR short-squeeze is wider, but weaker

By GG Analyst in Reviews 0 Comment

EUR/USD

The EUR short-squeeze continued yesterday, but this time on a much larger scale. The single currency was appreciating not only against the dollar, but also against the yen and the Aussie. Yesterday we mentioned that this run of events was quite possible. However, we repeat it again – it is too early to speak about a reversal in the pair. The current movement should be in no way regarded as the beginning of a reversal. The spikes two days ago and yesterday were quickly sold off. The attempt to rise from 1.2750 to 1.2775 was very short. Then followed the drop more…

The bears take profits before a new attack

By GG Analyst in Reviews 0 Comment

EUR/USD

The traders are taking profits on the euro’s decline. It is clearly seen in EURUSD and EURJPY. And these are the main pairs in which the flight from the weak euro into “liquidity” was especially strong. Yesterday they were jerking up after the fruitless attempt to break through the local lows. That was exactly profit-taking, not an attempt to reverse since there was no good news from Europe. Quite the contrary, the German ZEW came out much worse than expected. The economic sentiment indicator dropped down to -15.7, thus bringing the modest growth of October to naught and the current situation more…

There’s one problem – politicians

By GG Analyst in Reviews 0 Comment

EUR/USD

Greece hasn’t received any money. Of course, yesterday’s meeting of the EU finance ministers didn’t solve all the problems with a wave of a magic wand. And no one had really expected that, so the market reaction was rather reserved. The single currency hit new lows this morning. At night the pair sank down to 1.2675. Looking from a broader perspective, we see that EURUSD is moving along the lower bound of the downward channel. It’s noteworthy that the  bounces  here are getting weaker and shorter. This sale is very likely to get stronger, as we risk stumbling over the wave more…

Stats are getting better, but the markets are still on the defensive

By GG Analyst in Reviews 0 Comment

EUR/USD

The US markets kept falling yesterday, but it already didn’t mean much for the euro. Going down to 1.2715, EURUSD hit its 2-month low. However, by the end of the day the pair had stabilized around 1.2745 and at the beginning of active trading in Asia jumped up to 1.2780. Now it keeps trading here (above Thursday’s highs). The eventfulness of the day (numerous statistics and the decisions of two CBs) didn’t develop into any high volatility in the markets. Draghi’s comments were moderately optimistic. He noted that the outflow of capitals from the suffering countries’ banks changed into the inflow more…

Forex celebrates Obama’s victory

By GG Analyst in Reviews 0 Comment

EUR/USD

The winner is Obama. It’s interesting to see in what succession the markets reacted to the news. Oil shot up higher than other markets yesterday. American WTI flew up to $3.8. The US stock exchanges returned to the area of local highs. And Forex patiently waited for the final election results. In EURUSD the reaction to Obama’s victory was seen only at night. The pair rose from 1.2780 by approximately a big figure. The market reaction comes up to our expectations. Obama’s reelection is good news for risky assets and commodities and bad news for the dollar. Unfortunately, it’s too early more…