QE is getting out of date

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD is already testing the resistance at 1.3550. Actually, the pair has already managed to go above this level, but yet it is too early to celebrate victory over this resistance. Anyway, the fact remains that the pair is still gradually purchased. There hasn’t been much news since the beginning of the week, so the market mechanically has continued the same trend. Today it is worth paying attention to the US inflation and retail sales statistics. Existing Home Sales are also noteworthy. It will be statistics for October, when a part of government services were closed for more than two weeks. more…

Toward the mountaintop, inch by inch

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro keeps recouping its losses and has already recovered to the levels seen before the ECB’s rate decision. 1.3500 had been broken by the beginning of the EU session, after which bulls wanted to take the pair higher, but were stopped at 1.3540. The bears are retreating, albeit gradually. To surrender there should be more solid reasons and there hardly was any yesterday. In the meantime, stock markets were making their way up for the most part of the day. At the beginning of trade S&P 500 hit 1800 and Dow broke above 16000, but then players decided to start more…

The broken attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment statistics proved to be favouable, though all the short-term growth potential of EURUSD had been “eaten away” by the market movement a day before. As a result, the dollar bulls failed to bring the pair below the lows of the previous day, yet the decline from 1.3435 to 1.3312 can hardly be called unimpressive. So, what was good about the employment statistics? First of all, the number of new jobs in October exceeded 200K (204), moreover the rates of the preceding two months were also revised up. Thus, the average rate for the last three months is also more…

Fast and furious Draghi

By GG Analyst in Reviews 0 Comment

EUR/USD

Draghi, who yesterday celebrated the second anniversary of his tenure as president of the ECB, acted in a very unexpected way. The ECB lowered the refinancing rate by 25 basis points to 0.25%. The deposit facility rate was kept unchanged at the zero point. The interest rate was also cut by 25b.p. to 0.75%. At best the governing council was expected to have given some hints at taking action in a month or to have announced liquidity support through other tools of the ECB. Draghi again proved to be more maneuvering than considered by many. At the press-conference he pointed out more…

USD abstains from the further attack

By GG Analyst in Reviews 0 Comment

EUR/USD

USD doesn’t feel like leaving the gained positions for long, but at the same time it is not strong enough to go further. For now. Some improvement seen in EURUSD on Monday was leveled down by the decline on Tuesday. It is remarkable that there was no bad news from Europe. The markets simply fear dovish comments that Draghi can make at the press-conference tomorrow, hinting at taking action in December. Strong advocates of active measures call on the CB to loosen lending standards already in November. The latter is hardly possible. Yesterday Mario Draghi pointed out that the EU affairs more…