USD hits fresh highs

By GG Analyst in Reviews 0 Comment

EUR/USD

We were right – Germany is not the entire eurozone. Its price stability hasn’t helped to keep the rates for the whole region unchanged. According to Eurostat’s preliminary inflation estimate, published yesterday, the annual inflation rate in September fell to 0.3%. It corresponds to the rates expected at the beginning of the week, but after the reassuring German statistics traders have already managed to build retention of this index at 0.4% into their strategies. This situation intensifies pressure on the ECB, urging the latter to announce the beginning of the bond buying programme. On speculations that it will happen already this more…

Attempts to put pressure on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro had managed to recover by the end of the day and close Monday positive. During the day EURUSD went as high as 1.2714, but closer to its end the pair was pushed below 1.2700. The data on the US consumer spending surpassed expectations, showing that personal spending grew by 0.5% after going down by 0.1% a month before. The data went beyond expectations and indicated revival of demand, which can urge the Fed to initiate tightening, or in other words normalization of the monetary policy. Besides, the consumer and business confidence of the eurozone keep sliding down. Against such more…

Unannounced intervention of RBNZ

By GG Analyst in Reviews 0 Comment

EUR/USD

The end of the previous week and the beginning of this eventful week passed under the banner of USD’s growth against EUR. Against our expectations of rebalancing, the pair hit fresh multi-year lows. Now trading is held near 1.2675, which hasn’t been seen since November 2012. However, taking into account that then the low of 1.2662 didn’t exist for long, the current levels can be confidently called the lowest ones since September 2012. This week the major risk for the pair is posed by the ECB’s regular meeting and the following press-conference and also by the US employment statistics for September. more…

USD may depreciate on poor GDP data

By GG Analyst in Reviews 0 Comment

EUR/USD

Hardly had we written about the threat to the local lows in the pair yesterday when the pair was pushed below 1.27. The major part of this decline took place against liquidation of stops after hitting the previous lows. Formally, this selling occurred when Draghi repeated that the ECB was ready to continue its unconventional policy to avoid inflation risks. The pair came to its senses only at 1.27. Here it got support and now makes new attempts to consolidate. There are no reasons for growth as the eurozone keeps releasing poor news while the US labour market, according to weekly more…

EURUSD is at its 14-month lows

By GG Analyst in Reviews 0 Comment

EUR/USD

Having broken through 1.2840, EURUSD quickly fell down to 1.2770. The main reason for this movement is triggering of limit orders on reaching new local lows. As a result, the pair is now trading very closely to the lows of the previous year (1.2744). The next accumulation of stops can be near 1.2650. The further target of decline may be set at 1.20, which had been hit in 2012 in the heat of the EU sovereign debt crisis before Draghi made his famous ‘whatever it takes’ speech. Then the low rate was explained by the fears of the EU disintegration with more…