A threat to correction against USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Once again the single currency suffered pressure  in the morning. The low set at 1.3118 yesterday during the Asian session held for about a day. At the time of this writing the local low in the pair is 1.3111. The decline is accounted for by the expectations of the QE by the ECB this week. At least, by the expectations that clear parameters, size and the commencement date will be announced. It should be mentioned that these are very feeble expectations. So if they are not met, we may face a serious movement in the opposite direction. Lots of players staked more…

EUR got close to 1.31

By GG Analyst in Reviews 0 Comment

EUR/USD

This week the EU is planning to discuss a new stage of sanctions against Russia regarding help the latter delivers to the Ukrainian separatists. Their success has been producing a negative effect on the situation in the markets lately and, as a result,  has put pressure on the single currency. Another round of sanctions will hamper the economic potential of Europe even more. EURUSD has reached 1.3112 this morning in view of the growing geopolitical risks. Also, the euro is affected by hints of Mario Draghi, made a week ago in Jackson Hole. After his speech now the markets expect further more…

Geopolitics puts pressure on Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

The portfolio rebalancing and demand for the EU currencies were interrupted yesterday by Kiev’s accusations that Russia had active forces in Ukraine and helped the separatists. The UN believes that over 1000 of soldiers can be located on the territory of the neighbouring state. Such accusations imply further aggravation of the conflict. The stocks of the Russian corporations  and the ruble lost about 2 % yesterday afternoon, affecting the EU indices and currencies. Thus, EURUSD went on the defensive off the intraday high of 1.3220 and closed the day at 1.3180. Thursday’s low makes 1.3158 and it is less than 10 more…

US statistics pose a threat to USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock market managed to hit a fresh global high, but the trading range was rather narrow, which spoke about moderate trading volumes. At the time when the market reaches new round levels it gets flooded by retail investors, while corporate investors start lock in their profits. We tend to think that the latter are much stronger, so at the end of the month and before the beginning of the new financial year we expect portfolio rebalancing of various funds and financial companies. And it means that the trends which formerly dominated the markets will be corrected. EURUSD may gain more…

USD’s rally to pause at the end of the month

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock market feels more and more confident at a new level. S&P 500 has exceeded 2000 and the global asset market reached the capitalization of 66trln, as calculated by Bloomberg. Before the global financial crisis appreciation of the stock markets often turned out to be USD’s decline and strengthening of the currencies in the developing countries, which also affected EUR and the pound. Though the pound in theory can follow this very tendency against growing chances of the rate increase earlier than in the USA (see below), the euro’s recent weakness has been quite reasonable. And don’t say that more…