Clearer deflation in Europe

By GG Analyst in Reviews 0 Comment

EUR/USD

The EU inflation keeps slowing down. The most important news here came yesterday from Germany, which didn’t see any price growth in November after the decline by 0.3% a month before. Yet, the annual inflation rate dropped to 0.6%. Last time inflation was that low at the end of 2009 because of the economic meltdown and cut in consumer spending. Now the situation is a bit different. The unemployment level is the lowest since the time of Germany’s reunification, as was shown in the employment report for November. Besides, it was messaged that the number of the unemployed had decreased again more…

Deceitful weakening of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US dollar opened the week with a gap against the EU currencies, but immediately lost its advantage. The negative factor here was the ECB’s mood for further easing of the monetary policy and expansion of the incentives by possible bond purchases. After Draghi’s speech to the Parliament at the end of the previous week it became more possible that during the press-conference at the beginning of December it will be announced how fast and on what terms the European CB will purchase public debt of the EU countries. As it is absolutely clear that the current bond purchases are miserable more…

Out of control

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency has again fallen under pressure today. On Monday the pair hit a fresh 26-month low at 1.2438. Then the pair was in moderate demand and grew to 1.2575 at some point. Against the global growth of the dollar the single currency got support from messages that Mario Draghi’s colleagues are displeased with his management style and are trying to restrain his intention to continue easing the policy till the end of the year. In the recent weeks speculations have been around the dilemma whether the ECB will launch a programme of quantitative easing or abstain from it. The more…

The flat end of the week

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency would have had a hard time, if the German PMI hadn’t come to the rescue. The preliminary French PMI, published half an hour before, intensified pressure on the euro due to the decrease in the Manufacturing and Services PMIs. The former fell from 48.8 right down to 47.3 against the expected 48.6 and the latter – from 48.4 to 48.1 against the expected 48.2. The French economy keeps slowing down. The Composite PMI in the meantime dipped down to 48.0, which hasn’t been seen since last February. The pair managed to stay above 1.26 (the low was more…

Stock exchanges set the trend

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the euro-bulls didn’t let the pair cancel out the growth of Wednesday. The pair was picked up on the dip to 1.2700 and was pushed off above 1.2800. It’s absolutely unbelievable volatility in comparison with that mire, we observed last summer, when VIX reached the pre-crisis lows. Now it is at its three-year highs due to the impressive correction in the stock indices. It is that very profit-squeeze, we mentioned so often before. To be honest, we expected it much earlier, so now buyers’ enthusiasm has significantly subsided after hitting 2000 in S&P500. Another, more direct, reason for the beginning more…