Forex disregards Yellen’s softness

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD remains in the uptrend. But yesterday it seemed that we turned on a serious resistance at 1.35. Thus, on the one hand, we’ve got a series of ascending intraday lows, but on the other hand bears are putting up strong resistance at 1.35.  By the end of the week the market has stuck somewhere in between 1.3418 and 1.3490, which were hit during the European and US sessions (now it is 1.3450). It’s remarkable that for all that stock exchanges don’t feel any confusion. For them the situation is pretty clear. The next chairman of the Fed, Janet Yellen, is more…

Central banks’ games

By GG Analyst in Reviews 0 Comment

EUR/USD

Concluding from the recent speech of Janet Yellen, the new chairman of the Fed promises to be even milder than Bernanke. In the comments, prepared for today’s report to the Senate Committee, she says that yet the Fed has got lots of various means to support the economy and the labour market, which are now far from the potential rates. Upon the whole she believes that now it is necessary to provide as many incentives for growth as possible in order to return to the normal mode of the monetary policy. In this case we see a striking difference between the more…

EUR bears should be more eager

By GG Analyst in Reviews 0 Comment

EUR/USD

Despite the blow Draghi delivered to the single currency last week  and also the pressure put by the employment statistics, the single currency is still strong enough to make its way up. The charts show a series of ascending intraday lows: 1.3293, 1.3317, 1.3358. In the short term these data can be enough to be bullish, but regarding a longer term it is quite dangerous to purchase the single currency at the current levels. Trading is now held at 1.3430 and it is the highest rate which EURUSD corrected to after the rate cut announcement. It is quite likely that the more…

The broken attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment statistics proved to be favouable, though all the short-term growth potential of EURUSD had been “eaten away” by the market movement a day before. As a result, the dollar bulls failed to bring the pair below the lows of the previous day, yet the decline from 1.3435 to 1.3312 can hardly be called unimpressive. So, what was good about the employment statistics? First of all, the number of new jobs in October exceeded 200K (204), moreover the rates of the preceding two months were also revised up. Thus, the average rate for the last three months is also more…

Fast and furious Draghi

By GG Analyst in Reviews 0 Comment

EUR/USD

Draghi, who yesterday celebrated the second anniversary of his tenure as president of the ECB, acted in a very unexpected way. The ECB lowered the refinancing rate by 25 basis points to 0.25%. The deposit facility rate was kept unchanged at the zero point. The interest rate was also cut by 25b.p. to 0.75%. At best the governing council was expected to have given some hints at taking action in a month or to have announced liquidity support through other tools of the ECB. Draghi again proved to be more maneuvering than considered by many. At the press-conference he pointed out more…