Statistics again hang over EURUSD

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD keeps plying between 1.3490 and 1.3540. Within this narrow range the single currency is expecting important news from Europe, that is the final PMI for the services sector in January and employment in the US private sector by ADP. In the former case analysts on average don’t expect any changes, despite the more optimistic estimate for the manufacturing sector a couple of days ago. If the initial estimate is revised up, it may support the single currency as it will shatter doubts about the ECB’s tomorrow resoluteness. Yet, stats on the US employment have the greatest risk potential. ADP is more…

EUR is among safety assets

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the stock markets suffered a hard blow. The worn-out exchanges of the developing countries were knocked down. Most of them lost more than 2% over the day. Now we have quite an unpleasant situation on hand. The US Fed ignored the warning signals of the slowdown in the business activity and cut the QE programme last week. Thus, the markets are now sure that the only thing which can prevent the Fed from taking a similar step in the future is utterly disappointing statistics from the USA. Against this background the US investors, anticipating further cuts,  very painfully reacted to more…

CPI slowdown – a cause to cut the ECB’s rate

By GG Analyst in Reviews 0 Comment

EUR/USD

As has already been written, breaking through 1.3500 can be regarded as confirmation of the downtrend in EURUSD. It is quite remarkable that the pair, ignoring the fundamental indicators lately, has finally found one important indicator, which managed to shift the balance of forces. We mean inflation statistics. How come that this generally well-predicted indicator, which has brought no surprises so far and hasn’t affected the monetary policy since the beginning of the crisis, now produces such a great impact on the pair? The thing is that the peripheral countries of the eurozone suffer deflation, besides the current monetary policy remains more…

Emerging defensive

By GG Analyst in Reviews 0 Comment

USD/TRY

Emerging markets are on the defensive now. The capital outflow from such countries as India and Turkey made their CBs sharply raise the interest rates, thus making investment in these currencies more attractive. Last night the Turkish CB increased its overnight lending rate from 7.75% to 12%, and one-week repo rate from 4.5% to 10.0%. This measure, surprising in its scale, boosted a rally in the emerging markets and supported strengthening even of such currencies as the Australian dollar. Albeit at a smaller scale, yesterday the Russian CB conducted interventions at approximately a billion dollars, along with that exceeding the more…

It’s all USD’s fault

By GG Analyst in Reviews 0 Comment

EUR/USD

The pair got support on the strong stats from Europe and relatively poor data from the USA. Yesterday’s PMI helped the single currency get off the lower bound of the range, forming since the beginning of the week. The index pointed out strengthening of business activity in the eurozone. And what’s important not only in Germany, but also in other countries. But afterwards dollar bears fastened on the continuing claims index, which has been on the rise for the last three weeks. Except for one week in July, distorted by the holidays, the last time unemployment claims exceeded 3.06 million was more…