USD doesn’t hurry to give in

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro tried, but failed to attack the dollar yesterday. The relatively good PMI stats for Germany and France didn’t help the eurozone to surpass expectations in all indicators. Now the market has a great set of facts and statistics on big countries at its disposal, though special attention should be paid to small ones. Now Germany is the one to carry the overall performance of the eurozone.  The Services PMI has grown to 55.4 in September instead of the expected slowdown from 54.9 to 54.6. In its turn it helped the Composite PMI grow against the rate of the previous more…

Technical analysis highlights a possibility of short-term correction

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is no longer as sensitive to Draghi’s comments as before. Yesterday he expressed readiness to expand incentives, including non-traditional measures. However, the markets don’t take these words as a threat now as Draghi’s under increasing pressure of Bundesbank and the central banks of other core countries. Thus, the reaction to Draghi’s rhetoric was quickly exhausted. The pair dropped down to 1.2816 (a new high for more than a year). The pair remains oversold. But meanwhile its current position is explained by fundamental factors. So short-term traders can only rely on a quick pullback within the range of the more…

The silence of G20 enables JPY to depreciate

By GG Analyst in Reviews 0 Comment

EUR/USD

Last weekend there was held a meeting of G20 central bank governors and finance ministers. The representatives of the largest countries, constituting about 85% of the global economy, focused on stimulation of economic growth. Nothing was said about currency movements. Thus, the current rally of the dollar received a tacit approval, so the bulls may gain the lead, at least for a while. Now USDX is trading near its two-year highs. Then growth of the dollar was explained by weakness of the single currency. And now it is USD’s rally, aroused by expectations of the monetary policy tightening and of impressive more…

Scotland supported Britain and helped the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

All day long yesterday the single currency was taking painful attempts to recover after the mess made by FOMC’s intention to introduce a tougher monetary policy than expected. It also must have been to the advantage of the single currency that the demand at the TLTRO auction , which the ECG conducted for the first time, proved to be lower than forecasted. The analysts, surveyed by Bloomberg, expected bids for approximately €175bln, while the actual demand proved to be twice as low, making 82.6bln. It means that banks don’t hurry to make 4-year loans at quite a low interest rate of more…

FOMC intends to act with decision

By GG Analyst in Reviews 0 Comment

EUR/USD

The Fed is preparing the markets for a more dramatic increase of interest rates from the beginning of toughening. Besides, Fed Chair, despite all vagueness of her comments, made it clear that the markets were underestimating closeness of rate increases. It can be treated as a promise of the first increase already in the first 3-4 months of the next year instead of the middle of the year as expected earlier. It seems that Janet Yellen tried to imitate Greenspan, making obscure comments and leaving herself more space for maneuver. If she starts to imitate not only Greenspan’s manner of wording, more…