Bernanke’s speech supports demand for risk

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed didn’t manage to produce any impact on the market situation and FOMC assumed a neutral policy stance. Even changes in the forecasts balanced each other. The growth expectations for this year improved (from 2.6% to 2.7%), while the long-term forecasts, on the contrary, were revised down (for 2013 from 3.0% to 2.9%% and for 2014 from 3.7% to 3.4%). Yet, the number of players believing that 2014 will be the year of an extremely tough monetary policy has increased. In the first minutes after the news release the dollar got momentum for growth, but didn’t manage to consolidate the more…

Markets are on the tenterhooks waiting for the Fed’s press-conference

By GG Analyst in Reviews 0 Comment

EUR/USD

Tonight the Fed will announce the results of the two-day FOMC meeting. The CB is not expected to take any certain measures, this is why the markets will tend to look out for the signs of change in the Committee’s mood.  There is much food for thought as a series of strong news on the economy has been followed by a batch of rather poor data. Although the labour market is growing, the rate of job creation has conspicuously decreased. The US consumer sentiment is also retreating from its maximum levels, achieved over the previous months. The Conference Board Consumer Confidence more…

Ranks of fiscal compact advocates get thinner

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency was suffering the pressure of negative news for most part of the day yesterday. The morning sentiment dominated the markets all day long: the exchanges reduced their stakes in the risky assets on the concerns that France would change the leader, the Netherlands wouldn’t ratify the fiscal compact treaty and the situation in Australia would change for the worse. All that created a rather unfavourable picture where only safe assets were in demand. As for the fiscal compact, here the things are even in a sadder state. The problem is not only with the Netherlands; France, if ruled more…

North America doesn’t hurry to help Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

This morning the Asian markets are under a slightly descending pressure, but the pressure is moderate and therefore doesn’t tell on the currency quotes. Yesterday the euro went through a few disturbing hours, but then investors resumed buying the currency. The disappointment in the high yield, which investors demanded of the Spanish long-term bonds, caused the decline of the euro/dollar from 1.3150 to 1.3070.  The sales were also boosted by the rumours that Hollande, who is known to be against the earlier EU arrangements and agreements, is taking the lead in the French presidential race. The leaders of the largest economies more…

EUR: a long tightrope walk above the chasm

By GG Analyst in Reviews 0 Comment

EUR/USD

For the last 12 trading days positive and negative news on the euro have been perfectly balancing each other, making the euro/dollar fluctuate up and down the 1.31 level. Today the markets are standing still in expectation of the long-term Spanish debt auction. Remember that despite the yield growth the short-term auction results were regarded as positive and brought down the CDS price. The same outcome can be expected this time, as the ECB will hardly let the situation run out of control at such an important moment. After all, if deterioration in Spain reaches the same point as in Greece, more…