The market froze expecting Draghi and US stats

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex in general and EURUSD in particular are still in the standby mode, all waiting for Draghi’s commentary to the decision of the ECB’s governing council and for the release of the US GDP for 3Q and of unemployment claims, which can help to determine the trends of the labour market before tomorrow’s payrolls. The consensus forecast of economists doesn’t speak about changes in the refinancing rates and the deposit facility rate, but the community is waiting that Draghi will point out some measures to normalize liquidity in the banking sector of the region, as the latter is stalled getting ready more…

USD abstains from the further attack

By GG Analyst in Reviews 0 Comment

EUR/USD

USD doesn’t feel like leaving the gained positions for long, but at the same time it is not strong enough to go further. For now. Some improvement seen in EURUSD on Monday was leveled down by the decline on Tuesday. It is remarkable that there was no bad news from Europe. The markets simply fear dovish comments that Draghi can make at the press-conference tomorrow, hinting at taking action in December. Strong advocates of active measures call on the CB to loosen lending standards already in November. The latter is hardly possible. Yesterday Mario Draghi pointed out that the EU affairs more…

The need and chance for easing by ECB

By GG Analyst in Reviews 0 Comment

EUR/USD

On Friday USD purchasing continued and only on Monday we could see some stabilization. However the latter had been preceded by a serious attack on the euro during the Asian session, due to which EURUSD had tumbled down to 1.3440 at some point. It happened on reaction to the words of FOMC’s Richard Fisher, who criticized the US government for impeding the recovery. Anyway, the single currency found strong support at the level of its 7-week lows. The thing is that the pair has been purchased more than once at 1.3470 since the end of September. Later the pair stabilized at more…

EUR fell in anticipation of the rate cut

By GG Analyst in Reviews 0 Comment

EUR/USD

Such strong fluctuations in the euro aroused by inflation stats haven’t been seen for long. Inflation at 0.7% y/y in the eurozone (against the expected 1.1%) made EURUSD drop by about two figures. By now EURUSD has declined to 1.3539, taking into account that Thursday’s high was at 1.3738. Undoubtedly, selling of the euro coincided with the period of the dollar’s appreciation at the beginning of the day, but then the decline was getting momentum on its own. The low inflation rates, which were observed both in strong Germany and weak Italy, enabled large investment banks to expect that the ECB more…

FOMC hasn’t clarified the prospects

By GG Analyst in Reviews 0 Comment

EUR/USD

The US Federal Open Market Committee tried to avoid in its comments clear hints at the time when tapering would start. Yet, absence of evident concerns regarding the economy let bears gain the upper hand. Stock markets received a severe blow, which is now echoing in the Asian and European markets. S&P 500 shifted away from the global highs, losing more than a percent. Straight after the release EURUSD dropped by 85 pips, below 1.37, where it remains now by the beginning of the EU session. The Fed again expressed its desire to see stronger signs of economic growth before withdrawing more…