Problems are only with the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency still cannot start growing. Yesterday’s consolidation of EUR/USD with purchases on the decline below 1.2850 was sharply broken by the S&P’s message about cutting of Spain’s rating. Now it is just a step above the dust heap. As emphasized by the rating agency, the entire blame lies with the poor economic growth and inability of the government to handle the situation. But we know that these things are closely connected with each other and that the poor economic growth feeds itself in the environment of fiscal austerity: the economy gets worse, entailing plunge in tax receipts and increase more…

Market Mysticism

By GG Analyst in Reviews 0 Comment

EUR/USD

The famous market commentator, Mark Hulbert, has written a warning article, where he pointed out that yesterday’s decline of the American exchanges could be the start of a fundamental reversal. As an example he cited the fact that the bullish market of 2000s came into existence right on September 9, 2002. And the decline of 2007 started on October 9. It is creepy to think about the strict periodicity of these events – exactly 5 years. And it’s been just 5 years since 2007. On the one hand, the American markets have enough space for a fall, as they are rather more…

A new quarter – new trends

By GG Analyst in Reviews 0 Comment

EUR/USD

The last trading day of the week, month, quarter and with some countries of the fiscal year didn’t pass without a sale. On Friday the single currency lost the gains of Thursday – it dropped down to 1.2840 and this night it came close to 1.28. The pressure of this week has been caused by the renewed concerns about the manufacturing slowdown of China. The official data on the Manufacturing PMI have been pointing at the slackening of business activity for two months in a row. It is surprising that notwithstanding this fact the markets, which already last week had the more…

Poor US statistics didn’t stunt the market growth yesterday

By GG Analyst in Reviews 0 Comment

EUR/USD

Spain faces a difficult task, but, in our opinion, Rajoy’s government has taken the right approach to the deficit reduction issue. Next year’s budget, which was published yesterday, focuses primarily on the reduction of the government spending instead of the tax increase. Cutting the government spending by 7.3%, Spain supposes to save €13bln. It’s important that this scheme of deficit reduction goes in line with the EU bailout terms. Thus, Spain formulates the fiscal policy, which beforehand presupposes the turn for help from the outside. Otherwise, it would be necessary to revise the budget in a few months, which would only more…

Tug of war is over: bears win

By GG Analyst in Reviews 0 Comment

EUR/USD

A tug of war between bears and bulls has ended in victory for bears. The stock markets have declined sharply: the American exchanges have lost by more than a percent and the Asian markets have fallen by approximately two percents. The reason why the US exchanges have taken up a defensive position is quite clear: earlier that day the indices hit the highest level for the last 5 years. With such a background it was logical to expect profit taking. Here we should also consider the fact that the rally in the American market has been exemplary for too long and more…