Draghi put pressure on the euro, Carney failed to put pressure on the pound

By GG Analyst in Reviews 0 Comment

EUR/USD

ECB chief Mario Draghi made it clear that he remains dovish at yesterday’s press-conference after the rate decision. When commenting the decision he pointed out that the Bank is ready to take action in case of need. These words gave rise to selling of the euro as traders had expected more optimistic comments after a series of positive data. However, Draghi explained that a couple of positive PMIs, which have just entered the positive territory, doesn’t imply large-scale growth of activity and doesn’t affect the Bank’s forecasts on the EU economy. Also Draghi is right repeating that he will keep the more…

Bears and bulls are playing EURUSD

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro is trying to catch up with the growth of other currencies against the dollar, but all this looks funny or even dangerous for those who stake on growth of the single currency. Yesterday EURUSD managed to rise from the daily low of 1.3150 and hit the high at 1.3217. As a result, the movement made less than 70pips and by now half of this growth has already been recouped as trading is again below 1.3200. Actually, there wasn’t any particular reason for growth and the market players mainly ignored the news as the published stats represented a clear signal more…

EUR: sucked down in the bog

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is sinking deeper and deeper in the bog. It is remarkable how systematically and gradually the pair is being pushed down. Apparently, capital movement is going on at the level of structural changes in the plans of investors. It means that inside the market behind such little movement of rates stands really big money. And this money wants to sell the euro rather than affect the currency rate. The single currency still has to deal with one important level, that is 200-day MA, which is now at 1.3140. The market touched this level, but quickly bounced off it. more…

To start growing EUR needs its own good news

By GG Analyst in Reviews 0 Comment

EUR/USD

Because of Labour Day in the USA and Canada yesterday’s trading session was quiet enough. And this lull, in fact, didn’t do any good to the single currency. EUR is stuck in the bog, trading more and more persistently below 1.3200. Yet, we can’t say that on the whole the markets were seized by pessimism. Just the opposite, data on higher activity in China’s manufacture helped the Asian markets grow and earlier news from the euro zone had made it clear that manufacture in the region was also doing good.  So, why isn’t the euro growing? In our opinion, traders don’t more…

The market is again asynchronous

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets have again stepped into the period when correlations between key currencies and assets are not valid. For example, growth of developing markets is usually accompanied by growth of stock indexes of these countries and entails increase in commodity prices. Already for three months we’ve observed growth of commodity prices, but notwithstanding this fact developing markets and also resource-based Australia and Canada have been suffering a serious capital outflow. The same with the EU currencies. EUR has been depreciating for four days in a row and is already not far off 1.32, trying to break lower. Yet the markets are more…