USD’s depreciation, as usual

By GG Analyst in Reviews 0 Comment

EUR/USD

The positive performance in the stock exchanges contributes to the dollar’s retreat. On Friday the euro/dollar made a successful attempt to reach 1.3650. Thus, the uptrend, formed in the last three weeks, still holds. The risk demand, observed in the stock exchanges, supports the single currency. It is remarkable that in the stock exchanges we see positive performance, which is treated as an inclination to disregard weakness of the GDP stats for the first quarter. Here the markets are supported by Bullard, St. Louis Federal Reserve President. He supposes that already before the end of the year the economy will grow more…

Flying Kiwi

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar has closed the second week with decrease. The dollar index is again flirting with the rate of 80, which hasn’t been seen for over a month. The main reason for such pressure  is poor consumer demand. Apart from Wednesday’s downward revision of the final GDP data for the first quarter, yesterday we got consumer spending statistics for May. This is a wider indicator than retail sales, the Fed often appeals to it when considering consumer activity. So, yesterday’s data proved to fall short of expectations. The personal spending last month grew by 0.2% (against the expected by 0.4%). more…

Degrading US GDP for 1Q

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s data on the US GDP proved to be a real disaster and caused weakening of the US currency. Often the final (third) estimate of the US GDP doesn’t bring any significant changes, but this time the annualized growth rates were considerably revised down to -2.9%. Yet, the expected decline made only 1.8%. A month ago it was reported about the decrease by 1.0% and initially – about growth by 0.1%. Thus, with time the GDP estimate for the first quarter has deteriorated. Many experts, including the Fed’s members, think that it is an extremely retrospective view as it considers a more…

Carney stirred GBP selling

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we reported that Monday’s business activity statistics proved to be worse than expected and indicated growth slowdown. Yesterday’s Ifo indicators also fell short of expectations. The Business Climate index has been falling for two months in a row, though even now it is still quite high. What was the euro/dollar’s reaction? None. The single currency continued its attack on the US dollar, going to 1.3627 in the heat of the EU session. Then the pair was affected by caution of the market players, who didn’t hurry to take their profits after hitting a fresh historic high in the US indices. more…

Expanding attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday’s Flash PMIs for the eurozone could become an unpleasant surprise for the euro, just like frankly dovish comments of Draghi and Nowotny at the weekend and on Monday. Actually, they didn’t. The single currency proved to be strong enough to fight attraction, although absolutely all the Flash PMIs fell short of expectations. The German and EU estimates remain above 50, which separates decline from growth. Anyway, Germany’s manufacture didn’t grow, staying at approximately the same level, and the services sector slowed down its growth. As a result, the composite index tumbled from 56.0 to 54.8 and the Flash Manufacturing PMI, more…