AUD and JPY are temporarily stronger than USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Neither bulls nor bears managed to push the market out of the existing trading range. The slowdown of growth and further short-term weakness of the single currency dropped the pair only to 1.2584. And though hardly anyone doubts the dollar’s ability to continue growth, traders are simply too weak for such a step. For the next attack they need to store more liquidity. And this happens when the rate floats or consolidates. The example of this can be the period from the beginning of August till its middle. At that time after the consolidation within 1.3350-1.3400 the pair tumbled down below more…

A quiet day for USD

By GG Analyst in Reviews 0 Comment

EUR/USD

USD gave all Friday’s gains back to the single currency. Against other currencies it felt a bit more confident, staying positive. The main reason for that, in our opinion, is strong positioning for growth of the US currency. The rows of its buyers are too dense, so simply there can be no more volunteers to buy again. This very lack of heavy buyers serves as driving force for the currencies, otherwise the movement would be opposite. We mentioned it before and expected that it would happen on the ECB’s rate decision or on the employment statistics. However, it didn’t happen and more…

The payrolls shook 1.25 in EURUSD and pushed GBPUSD below 1.60

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency tested 1.2500 on Friday. This decline was caused by the perfect US employment statistics. The unemployment rate decreased from 6.1% to 5.9% and the number of jobs grew by 248K instead of the expected 210. Besides, the August statistics were revised up from 142 to 180. The average weekly hours has also slightly increased (from 34.5 to 34.6). But in the meantime, the average hourly earnings lost 1%, which in a way contradicts the classic situation with the tight employment market. It’s also no good that the participation rate has again fallen. In September it made 62.7 against more…

Only EUR held out yesterday

By GG Analyst in Reviews 0 Comment

EUR/USD

ECB Governor Mario Draghi failed to meet the demands of market participants. They were displeased with absence of a clear guideline in the monetary policy easing. Formally, the Bank pointed out that the policy has too many indefinite variables, so the size of future bond purchases can’t be forecasted with great certainty. However, the BOJ, for example, solved the problem in a different way: they set the target (2% of inflation in the medium term) and defined the way (doubling of money supply), also remembering about methods (purchasing plans which can change). Basing on Draghi’s comments, the markets suppose that the more…

Hit the bottom?

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday bulls managed to keep the pair from hitting new lows. It was actively purchased below 1.2590. Earlier today we saw some hints at profit-squeeze in USD, which helped to push the pair to 1.2670. Yet, the movement doesn’t look very steady in expectation of details on the ABS programme. Again it was interesting to see that the news about slower business activity didn’t push the pair to new lows. On the contrary, the latter slides down much easier when there isn’t any obvious reason. Yesterday’s data on the German Manufacturing PMI in September were revised from 50.3 down to 49.9 more…