Markets paint the countries black and white, without any shades of grey

By GG Analyst in Reviews 0 Comment

EUR/USD

Obama decided to seize the chance and surf the wave of people’s wrath with large banks. The US President pointed out that the JPMorgan loss would lead to tougher regulation of financial institutions. This is just what we feared when spoke about the $2bln loss of businesses (further it may even amount to 3bln). Such perspectives are favoured neither by investors nor by companies. As a rule, at these important points, when the fate of such bills hangs in the balance, the markets go down. Since the USA is heading for presidential elections, Obama will try to play his card as more…

EUR plunged below 1.29. Politicians consider the losses the Greek secession may inflict

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency opened the day with a drop below 1.29, caused by the persisting political uncertainty in Greece. Apart from the Bloomberg’s survey which forecasts the more than 50 % probability that “at least one country will leave EU by the end of the year”, some European officials already say that the consequences of this step are discussed at the summit level. As many times before, the deadline for the political decisions on Greece has been passed with no certain decision taken. The country still doesn’t have the government. The ECB’s Honohan said that “technically” Greece can disintegrate the euro, more…

Keeping our fingers crossed for Greece

By GG Analyst in Reviews 0 Comment

EUR/USD

‘Hedging failed’ – that’s the way Jamie Dimon, JPMorgan CEO, has described the trading loss of $2bln. In fact, the losses will hardly end there and in this quarter there will be further losses resulting from market volatility. Some especially meticulous analysts suppose that the company will possibly lose another $3bln. It’s a hard blow for the reputation of the company and its managers. Such unexpectedly bad news not only put pressure on the stocks at the end of the American session, but also can become an eventful moment in the fight of investors against Walker’s rule. All this may or more…

EUR rewrites the four-month low

By GG Analyst in Reviews 0 Comment

EUR/USD

The Spanish government has received the 45% share in Bankia, the third largest banking group in the country. 4.47 bln of the governmental aid will be converted into equities, thus allowing the group to build up its capital and confirm its solvency. The talks concerning the necessity of this step put pressure on the stock exchanges on Wednesday and also contributed to the euro sales. Even the rhetoric of Weidmann, president of Deutsche Bundesbank, hasn’t helped the euro. Weidmann keeps persisting in his opinion that the current measures, proposed by the ECB, are temporary and that the Bank shouldn’t be required more…

The wind of change

By GG Analyst in Reviews 0 Comment

EUR/USD

Last weekend was really eventful. Besides, all the published news contributed to the reduction of risk appetite. The euro opened the week with a huge gap down, broke the 1.30 level and stopped just at 1.2950, though Friday’s trading was closed at 1.3080. To begin with, the American employment data turned out to be utterly disappointing. The number of jobs in the non-farm sectors grew by 115K. Remember that the earlier market optimism in regard to this indicator was gradually melting away last week. At its beginning the markets forecasted the 200K growth, while by its end the jobs were expected more…