USD’s futile attempt to trigger stops

By GG Analyst in Reviews 0 Comment

EUR/USD

The story with the Malay plane combined with closeness of the local lows in EURUSD provoked emergency liquidation of long positions. The pair was picked up below 1.35, but before that it managed to gather stops after reaching 1.3490. Bears were very close to the annual lows, set in early February (1.3476), but failed to cross them. Anyway, the week was closed above 1.35 and this morning the single currency was still being purchased.  Now the pair is trading at 1.3540, having come off the dangerous lows, which are able to provoke further decline. There is no important news scheduled for more…

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 grows against the news

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is trying to grow against the news. The main reason for bulls’ enthusiasm is the cautious tone of the ECB members, who are usually neutral about the monetary policy. The Bank’s representatives  make it clear that QE can be expected only if the situation  in the EU deteriorates sharply. Now it’s hard to imagine what it can be – either a new spiral of the debt crisis or, which is more likely, economic slowdown with inflation remaining low. It’s important that investors should ignore signs of economic slowdown in the eurozone, as across the ocean there aren’t any more…

Bears win back 200-day MA in EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

Thursday’s stats on US employment contributed to strengthening of the US dollar. Yet, growth of the latter is least conspicuous against the pound, but against the euro and the yen the US currency has appreciated well enough. The dollar bulls want to depict the recent surrender of the 200-day MAs in EURUSD and USDJPY as an occasional and short-term trip beyond the key levels. The main reason for this movement is perfect employment statistics. The employment has grown by 288K, in the private sector its increase has been also good – by 262K. As a result, the average semiannual growth totals more…