Real threat of Scotland’s secession

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency stays in the narrow range of just 30 pips between 1.2930 and 1.2960. The pair is not strong enough to either start growth or to resume falling after the continuous decline. Thursday’s drop was the biggest intraday movement for more than three years. Even the favourable data on Germany’s trade balance, published during the EU session today, failed to initiate correction. The trade balance showed surplus of €22.2bln against the expected 17.3. Exports also grew more than expected, by 4.7% against the forecasted 0.6%. Traders preferred to disregard it and focused on import reduction, which can promise decrease more…

USD launches a flank attack

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency hit a fresh local low, falling down to 1.3108, but bears were not strong enough to test 1.31. We should say that despite the expected beginning of the ECB’s QE on Thursday, the single currency is depreciating against the dollar much less than its rivals like the pound, yen and the Aussie (read below). Today the main risk for the pair is posed by the Final Services PMI. If this index has been considerably revised in comparison with the preliminary data, it may affect the course of trading. Unfortunately for the euro, now there are plenty of downward more…

EUR got close to 1.31

By GG Analyst in Reviews 0 Comment

EUR/USD

This week the EU is planning to discuss a new stage of sanctions against Russia regarding help the latter delivers to the Ukrainian separatists. Their success has been producing a negative effect on the situation in the markets lately and, as a result,  has put pressure on the single currency. Another round of sanctions will hamper the economic potential of Europe even more. EURUSD has reached 1.3112 this morning in view of the growing geopolitical risks. Also, the euro is affected by hints of Mario Draghi, made a week ago in Jackson Hole. After his speech now the markets expect further more…

US statistics pose a threat to USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stock market managed to hit a fresh global high, but the trading range was rather narrow, which spoke about moderate trading volumes. At the time when the market reaches new round levels it gets flooded by retail investors, while corporate investors start lock in their profits. We tend to think that the latter are much stronger, so at the end of the month and before the beginning of the new financial year we expect portfolio rebalancing of various funds and financial companies. And it means that the trends which formerly dominated the markets will be corrected. EURUSD may gain more…

EUR is kept off the levels above 1.32

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency didn’t manage to recover yesterday. EURUSD was below 1.32 almost all day long yesterday, though the major rivals of the single currency felt much better. Besides, S&P 500 crossed the level of 2000, which was a significant moment for the markets. The index didn’t move far from this level and went on the defensive right after hitting the level. As we mentioned yesterday, the initial weakness of the euro was maintained by the divergence between the US and EU monetary policies, once again emphasized by the comments of the Fed’s and ECB’s governors in Jackson Hole. But further more…