Yellen stopped growth in EUR, but not in the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency didn’t venture to attack 1.37 on Tuesday. Growth was impeded by the market’s anticipation of further tapering by the Fed. It’s noteworthy that Yellen’s claims were quite reserved and generally in line with the traditions of the obscure rhetoric acquired by the Fed’s presidents.  She remarked that should the recovery go on at a forecasted rate, the QE will be curtailed with the current pace (by 10bln monthly). In the meantime, stock traders took her comments optimistically, getting themselves into eager selling. Since the beginning of February the market has recouped three fourths of the losses incurred at more…

EUR is a step off 1.37

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar keeps depreciating as demand for risky assets is growing. As before the risk demand spurs across-the-board depreciation of the dollar and renders great support to commodity prices. EURUSD managed to get above 1.3650, where from it slipped down at the end of January. Then the pair felt pressed due to expectations that the ECB would soften the monetary policy considering inflation easing. As it turned out, all in vain. The ECB doesn’t seem to hurry with easing of the monetary policy, referring to improvement in the performance of the eurozone. Moreover, one of the main threats of the more…

USD got weaker as markets continued to pull back

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment statistics again fell short of expectations. On Friday it was reported that in January non-farm employment grew by 113K after increasing by 75K a month before. BLS pins some blame on bad weather and in this case the rates may be quite better next month. Yet, a month ago there were similar opinions, which eventually proved to be wrong. The good news is that the traditional revision of statistics added over half a million to the employment rate and the last year’s rate was revised up by 87K in total. The unemployment rate has again declined and now more…

Draghi is beginning to resemble Trichet

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro climbed quite high yesterday, after Draghi’s words that the monetary policy doesn’t need any adjustment now. The ECB is still confident in the positive effect of the November rate cut, but adds that it is not very visible yet. We’ve frequently mentioned that the currency markets suffered a period of even higher rates  of the euro short-term loan before the New Year Day. The impact of the decline by quarter of a percent can be noted only with other conditions being equal, which never happens in the market. And the unwillingness to take advantage of inflation slowdown to ease more…

Modest attempts of EUR to grow

By GG Analyst in Reviews 0 Comment

EUR/USD

The Asian markets are making slight attempts to recoup the losses, while the US exchanges are balancing in indecision. The indices have fallen by 5% from their high, but yet don’t rush to pull back, preferring to wait for the US employment statistics first. In regard to EURUSD we can see the formation of a modest uptrend. Having opened at 1.3510 on Wednesday, it closed near 1.3530, yet the intraday low and high were above the corresponding rates of the previous day, and those in their turn were higher than Monday’s rates. This modest tendency can be attributed to the market’s more…