Denying to the last

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s a funny thing: already today the debt ceiling negotiations should come to the end otherwise default will occur already tomorrow, but for all that the markets manage to see the positive in the news from Washington. They are merely denying the problem. From the psychological point of view, the markets are just at the first stage – denial – and they still have to go through anger, bargaining, depression and acceptance. Yet, the other stages will scarcely be favourable for stock indices and the US dollar. Now the most probable way out is seen in another compromise with the debt more…

Politicians may reach an agreement on Tuesday

By GG Analyst in Reviews 0 Comment

EUR/USD

Just yesterday we pointed out that decline of stock exchanges was caused by lack of interest in the dollar, but already today we see quite a different picture, though at the limited scale. The senators’ hint at the possible conclusion of the fiscal deal on Tuesday made stock exchanges grow – the S&P 500 futures exceeded 1700 pips – yet the single currency was falling only during the US session, when indices were growing intensely. Later, when the general positive mood spread to other markets, EURUSD set off in the upward direction. Now trading is held at 1.3570, which 20 pips more…

Great expectations and grim reality

By GG Analyst in Reviews 0 Comment

EUR/USD

The negotiations on Capitol Hill have stalled. The traders, who hoped that an agreement would have been reached by Monday, are now utterly disappointed, which results in a stock market correction after the heavy growth at the end of the previous week. See how phantom the reasons for recent growth of stocks have been – it’s been based only on the suppositions of progress, without any real evidence of such. So don’t be surprised if in the coming hours you will be a witness of no less impressive retracements. The politics is quite a phantom and unsteady thing. The economic stats more…

Unpredictability of Forex

By GG Analyst in Reviews 0 Comment

EUR/USD

Stock exchanges sighed with relief on the news that Obama and the republican leaders hope to avoid a government default. The recent messages point out that the best thing we can get now is an agreement on a short-term debt ceiling increase to gain time for negotiations. As we saw in the preceding three times, the farther the deadline was the farther the positions of the parties were. Now there are more incentives to look for a compromise to overcome the political crisis. But it is not our case. Thus, the US markets have grown by almost three percents from the more…

Tapering may start already before the year end

By GG Analyst in Reviews 0 Comment

EUR/USD

Well, after all Obama has nominated Janet Yellen to head Federal Reserve. This news is not surprising as already for several weeks Yellen has been considered to be the most probable candidate for the post. The markets’ attention was riveted on a different event – the publication of FOMC’s September meeting minutes. As you remember, then the size of the bond-buying programme was kept unchanged despite the warnings about readiness for gradual stimulus rollback. The minutes point out that the Committee sees the need for this measure already before the end of the year. So, it’s all small wonder. Bernanke’s caution more…