Profit-squeeze in USD

By GG Analyst in Reviews 0 Comment

EUR/USD

China has pleased the markets a bit, announcing allocation of funds to five largest banks of the country. $81bln is not a very big sum and bears no comparison to the two preceding programs of incentives. However, the market more and more expects that the National Bank of China will remain on the sidelines at the time of sharp economic slowdown. ZEW Economic Sentiment proved to be stronger than expected and that aroused some optimism regarding the euro. The main index fell from 8.6 down to 6.9 instead of the forecasted reduction to 5.2. The indicator of the current situation tumbled more…

The Fed needs to be more cautious

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency fell under pressure and dropped below the support line of the short-term uptrend. Yet, in the afternoon it found support near the lows of the preceding day due to the poor stats from the USA, which saved the pair from further selling. The EU trade balance statistics proved to be contradictory. The seasonally adjusted surplus fell short of the expectations, making €12.2bln against the forecasted 15.9 and the preceding value of 13.8bln. But for all that, the non-seasonally adjusted value of the indicator reached the impressive 21.2bln against the expected 10.5 and the preceding value of 16.7. more…

AUD is crushed by slowdown in China

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro-bulls still hope to offset at least a part of the dollar’s appreciation. On Friday they managed to take the pair up to 1.2980. But at these levels the pair found enough buyers, which threw it off closer to the middle of the traded range. The short-term support, which appeared last week, still works, showing signs of a feeble uptrend. Probably, it will become stronger if the EU statistics are favourable and the US ones are poor. The EU trade balance can be one of such news. It has been steadily high in the recent months due to the economic more…

Finding a reason for correction

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD has been flat since the beginning of the week, but even this is not enough to state a sharper growth of the dollar index since last November. Each currency has its own reasons to depreciate against the dollar. Thus, the euro is under the pressure of deterioration of the investment climate due to the sanctions against Russia. The cut of the interest rates by the ECB last week also hampers the attractiveness of the single currency. Anyway, the reaction last week and earlier this week was so strong that on Wednesday, Thursday and Friday bears managed only to maintain their more…

EUR: controlled by bears

By GG Analyst in Reviews 0 Comment

EUR/USD

Hardly had the EU currency took one feeble attempt to adjust its decline yesterday, when bears overtly reminded it who controlled the market. The pair tumbled from the level of 1.2960 down to 1.2880. The major fundamental factor is low interest rates in the  eurozone, which put pressure on the money market – investors are trying to withdraw their assets from Europe to the USA or other countries and this exerts pressure on the single currency. But on the other hand, now yields of the US bonds are growing, which means that their prices are falling  and this is already a more…