Statistics again hang over EURUSD

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD keeps plying between 1.3490 and 1.3540. Within this narrow range the single currency is expecting important news from Europe, that is the final PMI for the services sector in January and employment in the US private sector by ADP. In the former case analysts on average don’t expect any changes, despite the more optimistic estimate for the manufacturing sector a couple of days ago. If the initial estimate is revised up, it may support the single currency as it will shatter doubts about the ECB’s tomorrow resoluteness. Yet, stats on the US employment have the greatest risk potential. ADP is more…

EUR is among safety assets

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the stock markets suffered a hard blow. The worn-out exchanges of the developing countries were knocked down. Most of them lost more than 2% over the day. Now we have quite an unpleasant situation on hand. The US Fed ignored the warning signals of the slowdown in the business activity and cut the QE programme last week. Thus, the markets are now sure that the only thing which can prevent the Fed from taking a similar step in the future is utterly disappointing statistics from the USA. Against this background the US investors, anticipating further cuts,  very painfully reacted to more…

CPI slowdown – a cause to cut the ECB’s rate

By GG Analyst in Reviews 0 Comment

EUR/USD

As has already been written, breaking through 1.3500 can be regarded as confirmation of the downtrend in EURUSD. It is quite remarkable that the pair, ignoring the fundamental indicators lately, has finally found one important indicator, which managed to shift the balance of forces. We mean inflation statistics. How come that this generally well-predicted indicator, which has brought no surprises so far and hasn’t affected the monetary policy since the beginning of the crisis, now produces such a great impact on the pair? The thing is that the peripheral countries of the eurozone suffer deflation, besides the current monetary policy remains more…

Attack of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency depreciated against the dollar yesterday. Having started Thursday at 1.3660, EURUSD finished it at 1.3550. It fell right to the area, where it had begun its upsurge a week before on the release of strong PMI stats. In our opinion, that movement was nothing more than washing out of short positions. Too many spoke about strength of the dollar on the threshold of the Fed’s meeting. In such cases big players often announce hunting for stops and kick a part of small investors off the market. It gives an opportunity to sell expensive or buy cheap, depending on more…

EM vs DM

By GG Analyst in Reviews 0 Comment

EUR/USD

In the Fed default softness gave place to default tapering. Yesterday FOMC announced reduction in purchasing of bonds and mortgage-backed securities by 10bln dollars starting with the next month (by 5bln in each group). This decision in general met the market expectations as the reaction was relatively moderate. The range of fluctuations in EURUSD after the news release didn’t exceed 30 pips. Partly it was due to the fact that earlier in the day there was stop-hunting with orders collected between 1.3650 and 1.3600. It was really surprising to see how EURUSD dropped from 1.3685 to the daily low of 1.3602 more…