When sentiments are more important than the real economy

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro kept appreciating even during the holiday trading session for Americans. The single currency remains in demand due to expectations of favourable EU statistics. A month before the sudden decline in inflation gave rise to hopes for the possible rate cut by the ECB and other incentives. As a result, the benchmark interest rate was reduced, which dealt a blow to the single currency. By now the euro has overcome the consequences of the heavy selling aroused by the rate cut and by the claims of the ECB officials that the council was considering negative rates as further incentives. Anyway, more…

Testing new levels

By GG Analyst in Reviews 0 Comment

EUR/USD

Wall Street finished one more day at record levels. Stocks are still being supported by favourable US statistics and bulls seem not to worry about the upcoming tapering. As if the festival could last forever. Yes, they’ll think about all this and the payback later and today the US markets are celebrating Thanksgiving Day, so there will be little activity in the afternoon. Yesterday’s purchasing of US assets was boosted by the quite strong data on weekly unemployment claims. They decreased to 316K despite the expected growth from 326 to 331. This index has almost completely recovered from the upsurge in more…

From zero interest rates down to negative ones?

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD is getting closer to last week’s highs, again trying to consolidate above 1.3550. From the technical viewpoint, there are no serious resistances right up to 1.3750/80. Last week the pair couldn’t go higher because of Bloomberg’s article about possible introduction of the negative deposit rate in the ECB and because of the following release of FOMC’s meeting minutes. These minutes also pointed out a possibility of negative rates on the Fed’s excess cash. Today the markets are worried about the following news: the biggest US banks wrote that should negative interest rates on excess cash be introduced they would be more…

Another hint at the rate cut by the ECB

By GG Analyst in Reviews 0 Comment

EUR/USD

As expected, the ECB is trying to put pressure on the single currency. On Monday several members of the EU CB made it clear that the current rates are not ultimate. The bank still can afford to decrease them. Besides, it seems that while the ECB has been keeping the deposit facility rate zero, officials have worked out for themselves a technical possibility of negative interest rates. Now this measure doesn’t look extreme and entailing unpredictable consequences. The reasons why euro-officials put pressure on the single currency are quite understandable. Since the rate cut at the beginning of the month the more…

Ready for vigorous movements?

By GG Analyst in Reviews 0 Comment

EUR/USD

Stock markets continue their upsurge. For advocates of technical analysis it should be important that EURUSD closed the week above 1.3500 and even went beyond the starting level of Wednesday’s correction. At the same time stock markets managed to close near the psychological levels of 16000 and 1800 in Dow and S&P 500 accordingly. It happened due to the favourable US statistics combined with rather dovish claims of the Fed’s high officials. Yet, as you remember, the euro ran a correction on the comments about possible introduction of the negative deposit facility rate by the ECB and the Fed’s minutes, according more…