Outlook for 2014: Part Two

By GG Analyst in Reviews 0 Comment

EUR/USD

The Asian stock markets showed some growth after the holidays, taking their lead from the US pre-Christmas positive mood. Yet, the yen is still under pressure. It hit a fresh five-year high against the dollar – at 104.82. AUDUSD also opened with a gap down. Probably, it is somehow interconnected as AUDJPY hasn’t demonstrated any changes – the cross opened at 93.06, where it had been before closing. So, no significant shifts. And it is quite reasonable as during the holiday time there wasn’t any important events. During the pre-Christmas trading session the dollar was in demand most of the time, more…

Outlook for 2014: The time of shocks is over

By GG Analyst in Reviews 0 Comment

EUR/USD

Let’s outline the prospects of the major currency pairs in the coming year. The euro performed well in the last quarter, considerably appreciating against the dollar and the yen. Even against the sterling its decline was not as strong as it could have been. And if we include here the rate cut by the ECB in November, the current strength of the single currency looks really mysterious. We think that EURUSD is getting support from the EU banks, which store liquidity on their balance sheets to get stronger by the time of stress tests. The improved sentiment indicators in the region more…

Marking time

By GG Analyst in Reviews 0 Comment

EUR/USD

Two steps back and a step forward – this is approximately the way in which describe the dollar’s performance in the recent days can be described. On Friday and yesterday it was retreating, thus giving bulls an opportunity to test 1.3700. Yet, all the attempts to get above 1.3710 were not very confident and were immediately followed by a pullback at a safe distance. Now trading is held at 1.3680 and the dollar is getting some support as the Fed’s hawk Fisher has mentioned that he was advocating a bigger cut of the purchases last week. This news, as well as more…

Forex is getting quiet after strong fluctuations

By GG Analyst in Reviews 0 Comment

EUR/USD

Quite naturally the single currency was suffering losses in the second half of the previous week. It was a result of the Fed’s decision to cut the monthly purchases by $10bln to 75bln. Eventually, EURUSD fell from 1.3810 to 1.3620. It seems that at that level players were purchasing the single currency within the bounds of a short-term profit taking. The previous week was the last full week of the year. This week the market liquidity will be limited before the holidays and right after them in the expectation of New Year’s Day. The end of the last week, when the more…

The strong payrolls didn’t help USD grow against EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

And again the euro is growing despite the news. The preceding eventful week ended with the US employment stats. The November report met the market’s high expectations and even surpassed them somewhere, but failed to produce any continuous effect on the euro, which eventually grew against USD. Now the euro/dollar is above 1.3700, which is the highest level since the end of October and within the reach of a long-term resistance (1.3750). This resistance is rather conventional, so we can hardly expect a burst of activity, should it be broken. The previous highs (1.3785, 1.3815, 1.3830) are of more importance now. more…