Overall EUR decline

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro is carving its way down. Our supposition that Friday would be quiet proved to be true for all markets except for the euro. The slack trading in most exchanges due to the absence of important news was accompanied by steady sales in the market of periphery sovereign EU bonds. And when the yield of Spanish 10yr bonds exceeded 7% and that of Italian bonds reached 6%, the selling of the euro became more dynamic. The maximal yield of Spanish bonds was just a step away from the record level in the history of the euro zone – 7.284% against more…

Markets listlessly correct after this week’s growth

By GG Analyst in Reviews 0 Comment

EUR/USD

The dashing march of stock exchanges is fading away by the end of the week, which in fact can boast the strongest growth since last January. As has already been mentioned in our previous reviews, good corporate reports helped the markets, favourably telling on the risk demand. Yet the single currency is enjoying just a nominal growth after the drop down to 2yr lows against the dollar. A sequence of ascending highs and lows in EUR/USD is good in itself, but still it is a very slack dynamics. By now the common currency hasn’t managed to make any gains against the more…

Bernanke promised no recession

By GG Analyst in Reviews 0 Comment

EUR/USD

More often than not the semiannual reports of the Fed’s chairman look like one and the same text repeated twice, first before the Senate Committee, then – before the Congress. However, yesterday the markets found something new and positive in the commentary of Bernanke. He preserved the cautious tone, but added that no new recession was expected in the country in the near future. This proved to be enough for the rally. As we know from the experience of Tuesday, if the incentive had been much weaker,  it would have still happened, as the markets are now drawing the positive from more…

Short covering in EUR before Bernanke’s speech

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was on the decline yesterday morning, but the news from the USA once again reminded us that the situation across the Atlantic is also rather gloomy. The pressure over the euro has been provoking the change of the interest rate differential after the ECB cut the rate down to 0.75% at the beginning of the month. That made the euro one of the weakest currencies, forcing it to fall against most of its competitors. Most likely, the decline in the euro/dollar from 1.2260 down to 1.2175 in the morning hours yesterday was caused not so much by the more…

EUR rallies out of the abyss of investor pessimism

By GG Analyst in Reviews 0 Comment

EUR/USD

The EU leaders greatly surprised the markets this morning. The single currency went through the strongest rally since the beginning of the year. It rose straight by 1.5% and in less than 2 hours broke the level of 1.26 on the publication of the end-of-summit decisions. But let’s relate the facts as they actually happened. The pessimism reached its heights yesterday afternoon when a flood of bad news befell the market. It became known that Spain won’t be able to finance itself for long with the current yields. The mistrust of the markets is eloquently confirmed by the yield of the more…