Fear has a thousand eyes

By GG Analyst in Reviews 0 Comment

EUR/USD

On Friday and Monday the markets went bearish on the concerns around the Spanish bond auction, which eventually ran smoothly. Spain managed to sell €3.18 bln of bills, so the demand was satisfying. And though the yield grew, the markets still favoured the results of the auction, which is confirmed by the 15 bp decline of the CDS price. Yet, we look forward to Thursday, when long-term bonds will be auctioned off. The German ZEW Economic Sentiment performed a pleasant growth. Instead of going down from 22.3 to 19 as forecasted the indicator grew from 37.6 to 40.7, which is the more…

The euro retests 1.30, demand for safety grows

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s hard to decide what to do with the dollar when a batch of good news is followed by a series of poor figures. The dollar was actively bought after the Fed’s policy had been revised in favour of greater strictness, but then the poor news on employment and inflation added to the tough rhetoric from the FOMC officials. That uncertainty made the euro/dollar fluctuate between 1.30 – 1.31. In the middle of the week the pair attempted to draw the reversal pattern on the speeches of the CB’s officials which boosted the market growth and consequently supported the demand for more…

Markets don’t dare to attack the lows and correct the decline instead

By GG Analyst in Reviews 0 Comment

EUR/USD

Exactly at the moment when commentators lost hope and stopped looking for the causes to buy assets the markets went up. As a rule, news feeds tend to account for the past trends and movements, which don’t always have further development. Thus, yesterday morning the business press abounded in commentaries concerning the drastic state of affairs in different corners of the Earth, but from the very beginning of the European session the markets didn’t feel any difficulty in finding buyers for the troubled securities. The positive impulse has played its role in the movement of the euro/dollar. The single currency again more…

Bernanke calls on banks to increase their capital buffers – markets don’t like it

By GG Analyst in Reviews 0 Comment

EUR/USD

On Monday evening markets started to recoup the losses suffered on poor employment data from the US. And since chances of the monetary policy toughening in the US diminished the dollar began to decline. The payrolls themselves were minutely described in our yesterday’s review, so we are passing over to other news. This night in Atlanta Bernanke made a speech in which he mentioned about the necessity of bigger bank capital buffers. This statement was quite alarming for banks and has already led to heavy losses of their stocks. Yet, Bernanke was his usual self, i.e. quite gentle, as he made more…

The weekend stole volatility

By GG Analyst in Reviews 0 Comment

EUR/USD

To discern the market reaction to Friday’s payrolls you’ll probably have to use a microscope.  It’s somewhat surprising as usually the release of the figure causes much movement in the markets and can even set the trend for the further month. Apart from the strong market reaction the indicator is also famous for its unpredictability: there is always a range of diverging forecasts and a wide discrepancy markets turned out mistaken in their estimates. The released data showed that employment growth made only 120K against the forecasted “above 200K”. According to the updated statistics the employment growth peaked in January, when more…