Bulls leave no hope

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar retained the positions gained on Thursday, remaining at 1.36 against the euro. In the meantime, commentators are considering the issues of the Portuguese Bank as a small hitch, which shouldn’t be exaggerated. They’d better regard it as a canary in the coal mine. Anyway, in general investors are positively disposed now, which is mainly a result of the strong US employment statistics. These data (employment growth by 288K in June and returning of the weekly unemployment claims close to 300K) increase chances of inflation acceleration in the coming months. Yet, the participation rate is rather low and in more…

Europe’s periphery again catches attention

By GG Analyst in Reviews 0 Comment

Though James Bullard is not a voting member of the Fed now, he is still concerned with the Committee’s inside. For this reason his comments that FOMC could start increasing the rates earlier than expected by the market stopped the US dollar from falling in the morning yesterday. And then the almost forgotten fear again fell upon the markets, the fear about Europe’s ‘troubled’ countries and their financial sectors. The second largest bank of Portugal aroused particular concerns around its solvency, as Espirito Santo International, a shareholder of Banco Espirito Santo SA, missed short-term debt payments. It immediately stirred concerns about more…

EUR: a broken boundary

By GG Analyst in Reviews 0 Comment

EUR/USD

Strengthening of right-wingers in the European Parliament has complicated the position of those, who insist on austerity measures. It was quite expected that the number of euroskeptics would grow, but the actual growth has proved to surpass the forecasts and, as a result, put the single currency under pressure on opening of the trading day. Trading is now close to 1.3620, whereas the lowest level reached by the pair was 1.3612. Technically there is some reason for this poor beginning of the day. The single currency closed the week below the important 200-day MA, which promises growth in selling as large more…

AUD tumbles down on low inflation

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro survived the bearish pressure. The support rate of 1.3790 held out, thus preventing a chain reaction in the exchanges and triggering of stop orders. Today we expect the release of April’s Flash PMIs, which makes the day really  important for the euro. According to the consensus forecast, the rates will generally remain unchanged in the eurozone, but are likely to grow in Germany. The services sector, in the meantime, is expected to show acceleration in all the key points. In other words, investors look forward to further extension of the recovery, which usually spreads from manufacture to the services more…

Closing short positions in commodity currencies

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro is still under pressure. The support at 1.3750/60, which had been strong at the beginning of the week, was surrendered by the bulls yesterday. By the way, similar performance is observed in the US stock markets. They are sagging under the burden of rate-increase expectations. However, the dollar cannot start a real rally as there is no unanimity in the FOMC. Evans, for example, expects a rate increase in the second half of 2015.  It somehow contradicts the core market forecast, according to which the rates will be raised in the first half. The dollar is depreciating against the more…