EUR short-covering gains momentum

By GG Analyst in Reviews 0 Comment

EUR/USD

The chances that Greece will receive another 130 billion package from the EU and the IMF significantly grew on Wednesday. On Thursday Eurogroup chairman Juncker convened the meeting of finance ministers to allocate money to Greece for it to avoid default. This news supports the single currency rate. The euro has already risen to 1.3280 against the dollar and is significantly growing against the pound and the yen. Later in the day the ECB will hold its regular meeting. Just a few are expecting a change in the rate, though some speak about the necessity of its lowering. The market participants more…

The euroarea tensions do not allow EUR to join the market rally

By GG Analyst in Reviews 0 Comment

EUR/USD

The Greeks haven’t agreed on the tougher austerity programme yet. The European leaders, in their turn, are increasing their pressure on the country, urging it to carry out the expenditure cuts sooner. Yesterday the euro had been falling until it reached 1.3030, but then another wave of stop-orders pulled the pair back above 1.31. It happened on the news that the government agreed to dismiss 15000 public sector workers. But it is not enough, and today the debates will be carried out against the background of large-scale strikes. Since the events are long-term, traders currently have a great deal of short more…

These were good payrolls… good for the dollar

By GG Analyst in Reviews 0 Comment

EUR/USD

Quite naturally, Friday’s report on the U.S. labour market proved positive for the markets. Stock markets experienced a rally, having grown by 1.2-1.6% to the end of the day. Actually, the labour market added 243K jobs in January. Besides, the corresponding figures for 2011 were also revised: BLS increased the number of employees in 2011 to 266K compared to what had been reported earlier. The unemployment rate fell to 8.3% from 8.5% in December.  Considering unemployment, the economy is on the right track: in November 2010 the unemployment rate made 9.8%, after which there set in a steady tendency for its more…

Greek debt swap details triggered the 3rd wave of the euro short covering

By GG Analyst in Reviews 0 Comment

EUR/USD

Details of the agreement on Greece’s debt, released yesterday, had a positive impact on the single currency. According to Bloomberg, the lenders agreed to the coupon payment of 3.6% for the 30-year bonds, which is a 70% reduction of face value. There was also one more rule adopted – the warrant, which will be triggered depending on the GDP dynamics: in case of fairly good growth, debt holders will get more. Let’s face it – there is a real threat of new debt write-offs. After the unpromising start of the day with a drop to 1.3025, the euro tested the 1.32 more…

January was a good month for risks, February will be different

By GG Analyst in Reviews 0 Comment

EUR/USD

Greece convinces us more and more that it is just one ‘formal’ step away from restructuring of the 200 billion euro debt to private investors. Now it is just the time for the country to focus on reforms that will lead it out of the downward spiral and ensure its solid growth and debt solvency in the future. Lenders demand serious pension reforms and higher workforce competitiveness. If all goes well, Greece will be granted the second aid package of 130 billion later in the week which will help it to avoid an uncontrollable default in March. The Greeks may promise more…