USD again gives up key levels to its rivals

By GG Analyst in Reviews 0 Comment

EUR/USD

As befits a central banker, Bernanke made it clear that his previous remarks were understood wrongly , which immediately put USD under pressure. What started as small profit taking after hitting three-year highs by the dollar index took a turn for full-fledged selling of the US currency. Yesterday the Fed’s head noted that the US economy needed the soft and stimulating policy to be preserved in the foreseeable future. These words gave rise to a rally. Soon it got additional support on triggering of short positions. The move was so violent that EURUSD hit 1.32 after the daily low of 1.2762 more…

USD corrects to the downside

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency came under pressure yesterday evening on the words of  Jörg Asmussen that the ECB’s intention to “keep the rates at or below the current levels for an extended period of time”  goes beyond  a 12-month horizon. Officially the CB has announced that these words shouldn’t be treated as precise directions. However, we, like the majority of market players, have become firm in our suppositions. For example, when the Fed started to use the same phrase, the period of time to keep the rates low went beyond a 12-month limit (actually, by now it’s been already more than two more…

America is spending. Again

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday trading in the currency market was going on under the flag of measured consolidation after recent fluctuations. The dollar index (DXY) has rolled back from the three-year highs, reached on Friday. Anyway, commentators are almost all unanimous in predicting the further dynamics of USD. The continuous stream of favourable news releases each time reminds of the upcoming end of bond purchases by the Fed. In addition to Friday’s data yesterday we got Consumer Credit statistics from the Federal Reserve. It was reported that the consumer debt growth in May made 19.6bln against the expected 12, having become twice as quick more…

The US labour market extends the dollar rally

By GG Analyst in Reviews 0 Comment

EUR/USD

Employment growth in the USA went beyond expectations in June and, as a result, caused a new tide of USD purchases. According to the released data, it grew by 195K, moreover, the growth rate in the previous month was revised up to the same figure (from 175K). April’s rate was raised even higher – to 199K. Thus, the report and accompanying revision painted a picture of a bit more vigorous growth in the labour market. It was enough for the attack on the dollar to continue and bring EURUSD to 1.28, where the trade stabilized. Now the trading range is still more…

The ECB and BOE emphasize differences of their and the Fed’s policies

By GG Analyst in Reviews 0 Comment

EUR/USD

The European CB and a bit earlier the Bank of England contributed to decline of their domestic currencies by 0.9 and 1.3%, respectively. The differences in the economic situations of these countries made the heads of these CBs accentuate the differences of their policy and that of the USA, which is about to negotiate the stimulus rollback. Thus, at yesterday’s press-conference Draghi put a special stress on the phrase that “the key ECB interest rates would remain at present or lower levels for an extended period of time”. Just two press-conferences ago he said that the Bank “never pre-commited”. It was more…