The markets quickly recovered from the meeting minutes

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency couldn’t stay below 1.3400 for long. Bulls came to their senses and under the cover of the favourable EU statistics were purchasing the euro. The poor rate of France’s Manufacturing PMI (47.8 against the expected 49.6) was pushed into the background by Germany’s manufacturing stats, which proved to be better than forecasted (52.5 against the expected 52.3). The services sectors of these countries also performed below and beyond expectations accordingly. The flash index for the entire eurozone hit the level of 51.5 in November, which  is slightly better than the October rate of 51.3 and slightly worse than more…

The ECB and Fed are getting farther from each other

By GG Analyst in Reviews 0 Comment

EUR/USD

The CBs of the world’s biggest economies keep moving in the opposite directions. The main currency pair received a double blow yesterday. It was somewhat unexpected as occurred neither on the publication of the Fed’s meeting minutes nor the release of statistics. Advocates of the technical analysis could triumph yesterday. For 10 trading sessions the single currency had been moving inside the narrow ascending channel and, as a result, had driven the pair in the overbuy zone, so when a correction broke the support of the uptrend (1.3510), it intensified the decline. Eventually, the movement carried the pair away to 1.3413 more…

QE is getting out of date

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD is already testing the resistance at 1.3550. Actually, the pair has already managed to go above this level, but yet it is too early to celebrate victory over this resistance. Anyway, the fact remains that the pair is still gradually purchased. There hasn’t been much news since the beginning of the week, so the market mechanically has continued the same trend. Today it is worth paying attention to the US inflation and retail sales statistics. Existing Home Sales are also noteworthy. It will be statistics for October, when a part of government services were closed for more than two weeks. more…

Toward the mountaintop, inch by inch

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro keeps recouping its losses and has already recovered to the levels seen before the ECB’s rate decision. 1.3500 had been broken by the beginning of the EU session, after which bulls wanted to take the pair higher, but were stopped at 1.3540. The bears are retreating, albeit gradually. To surrender there should be more solid reasons and there hardly was any yesterday. In the meantime, stock markets were making their way up for the most part of the day. At the beginning of trade S&P 500 hit 1800 and Dow broke above 16000, but then players decided to start more…

It’s getting hot in the stock market before the holiday season

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex-bulls are getting stronger and growth of the stock market in the absence of other important news is pulling the dollar down. All through the previous week EURUSD was recovering from the blow it had received on the interest rate cut at the beginning of November. But as we live at the time when interest rates around the world are close to zero, the ECB’s cut of the deposit-facility rate and of the refinancing rate by 0.25bp resulted in the reduction of the currency market interest rates by just a few percent points. Thus, to achieve the necessary effect Draghi will more…