QE3: this time the party is earlier than usual

By GG Analyst in Reviews 0 Comment

EUR/USD

At present markets are filled with optimism. You can see it clearly in the performance of American stock markets. While S&P 500 is hovering around the highs of spring 2008, Dow Jones has gone to even greater lengths. Yesterday this benchmark reached the highest mark since late 2007. Just 6% further up and the global maximums will be hit. However, the current employment level is still too far from the levels of October 2007. According to the recent data, the number of jobs is now 4.4bln less than 5 years ago. In this situation we even cannot count much on the more…

Rebalancing: Europe supported, Britain unaffected

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro rate didn’t fluctuate much yesterday: for the most part of the day the currency hovered between 1,28 and 1.2770 and only by the end of the day it fell from 1.28 to 1.2750. Such performance was mainly connected with the profit-taking in the euro after the more than impressive growth last week. Though the news feeds attributed the weakness of the euro to the Chinese statistics (reduction in exports), we don’t think that those concerns affected the price performance yesterday. The caution about risk demand was also caused by profit-taking in stock exchanges, which in its turn was spurred more…

Risk on

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was under a heavy pressure of markets yesterday, which pushed it down to 1.25. However, being again supported by the markets, the euro didn’t fall below this mark. It seemed that traders postponed the attack of the important levels for today or tomorrow. Later the single currency managed to consolidate success on the news leak from the ECB. The news that two ECB’s officials unveiled the details of Draghi’s plan let the single currency consolidate solidly above 1.25. The details are as follows: the asset purchase programme will be unlimited, however liquidity injecting will be sterilized. The Bank more…

Has the market squatted before a jump?

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro slumped during the EU session yesterday and continued the decline this morning. We can observe the formation of a double top above the level of 1.26 and the rates are now close to 1.2530. The newsfeeds describe this move down as a risk-aversion impulse on the concerns that the ECB’s actions won’t be as large-scale as expected earlier. We believe that yesterday’s move shouldn’t be fussed about, as EUR/USD remains within the upward channel and, moreover, is half a handle below its boundary. A good rally is often preceded by a slight drop, which makes buying of the instrument more…

The number of buyers is growing

By GG Analyst in Reviews 0 Comment

EUR/USD

It was a rather quiet day yesterday, yet it proved to be favourable for the euro. It’s noteworthy that the signal currency ignored the downward revision of German and Euro-Zone Manufacturing PMIs.  This activity indicator has been below the waterline of 50 points for more than a year (13 months). And its current value makes just 45.1. Anyway, by the end of the EU session EUR/USD rose above 1.26. For more than two weeks the currency has been fluctuating near the upper boundary of the upward channel, which formed at the end of July. Bulls want a move up. At this more…