And still the risk demand is growing

By GG Analyst in Reviews 0 Comment

EUR/USD

Despite the obvious improvement in the general news background, the single currency faced sales in the second half of the day yesterday. Formally it was not without reason. But the newly elected Greek government still needs to show its will to take further austerity measures. The expectations that Germany would take a less tough stance under the pressure of other G20 leaders also didn’t manage to develop into something tangible yesterday. While formerly the markets got disappointed in the results of the EU summits, now they get disappointed with the summits held by the leaders of the most influential countries of more…

A flicker of hope in the depths of despair

By GG Analyst in Reviews 0 Comment

EUR/USD

Many traders know very well that May is not the best month for buying stocks, and this year was not an exception. Yet the most interesting thing is that the crisis peaked in May not only because of the economic slowdown, but also as a result of political uncertainty. The biggest mystery surrounded Greek elections and their outcome. Given their preference to the parties supporting the EU membership and bailout Greeks have made it clear that they don’t want to be Europe’s outcasts.  Many commentators still keep estimating how favourable the EU disintegration could be in the current situation, but it more…

ECB’s and Fed’s members keep up risk demand

By GG Analyst in Reviews 0 Comment

EUR/USD

It is not the first time when at the beginning of Draghi’s conference the markets mainly sell the euro, but eventually switch over to buying of the currency. First Draghi pointed to the fact that the forecasts for the second quarter had changed for the worse. Yet he didn’t suggest anything new to maintain confidence in the suffering banking system. It surely disappointed the markets, though later they tempered justice with mercy on the news that the Bank would continue to hold 3-month auctions to supply unlimited liquidity. Besides, it is prepared to do that as long as needed, another year more…

May the correction start!

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is appreciating this morning. The correction of extreme oversoldness in the single currency is running its course. EUR/USD has gone above 1.25 at trading in Asia. This long-awaited correction is contributed by a neutral news background. It was a quiet day yesterday and the markets closed it out flat. Today’s correction can be explained by the expectations that the phone conference of G7 financial ministers scheduled for today will lead to some positive shifts towards resolving of the EU crisis. As G7 mainly consists of the countries which handle the slowdown by means of spending increase, Germany will more…

Poor payrolls revive Fed’s idea of QE

By GG Analyst in Reviews 0 Comment

EUR/USD

Since payroll figures proved to be poor, the likelihood of further QE has significantly grown.  The US non-farm employment has gone up by 69K. As has already been mentioned, the decline in economic and employment growth is quite typical of summer months. In this connection, many economists expected that May would be a weak month, forecasting the employment growth at 150K against the average half-yearly figure of 200K. However, the reality turned out to be even harder than this. The actual figures for May-June have shown employment growth just at 69K. Meanwhile, the data for April have been revised down to more…