USD correction. Day two

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the US dollar was evenly appreciating during the day. The bulls’ attack, which drove EURUSD from 1.3755 to 1.3815, proved to be short-term. It occurred when ECB Governing Council member Ewald Nowotny told MNI that the ECB would have to put up with the strong euro as it doesn’t have any tools to combat it. Soon the downtrend resumed and the pair closed the day at 1.3740. Now the downward movement is still going on and the local low has been set at 1.3730. Quite likely, the bearish attack will be getting momentum. The dollar’s appreciation is mainly connected with more…

CBs on standby

By GG Analyst in Reviews 0 Comment

EUR/USD

Having hit a new high, EURUSD has again stalled. Now the market is consolidating around 1.3800, a week ago it was 1.3650 and before that from September 19 till October 17 trading had been held at 1.3500. The same picture, though at a larger scale, was observed in the market during the superrally of 2005-2008. Then the market was pushed by the difference in the ECB’s and Fed’s policies. The former was extremely vigilant regarding inflation under the guidance of Jean-Claude Trichet. The latter had already fallen into the trap of a housing and commodity bubble, when on the one hand more…

USD is sinking because of risk demand

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday we witnessed a splendid rally against the dollar. Let’s be honest, it was quite a surprising thing. EURUSD grew from the lows of Thursday (1.3470) by over two figures. The markets slowed down only near the yearly highs, at 1.3680. Now we see some consolidation, so the pair has managed to retrace by 20pips off yesterday’s highs. When ascending, stock markets managed to hit a fresh historic high at 1733 (for the December futures). Psychologically the optimism is understandable: the markets got the long-awaited relief and the debt ceiling increase, which is able to arouse demand for risky assets. But more…

Great expectations and grim reality

By GG Analyst in Reviews 0 Comment

EUR/USD

The negotiations on Capitol Hill have stalled. The traders, who hoped that an agreement would have been reached by Monday, are now utterly disappointed, which results in a stock market correction after the heavy growth at the end of the previous week. See how phantom the reasons for recent growth of stocks have been – it’s been based only on the suppositions of progress, without any real evidence of such. So don’t be surprised if in the coming hours you will be a witness of no less impressive retracements. The politics is quite a phantom and unsteady thing. The economic stats more…

Tapering may start already before the year end

By GG Analyst in Reviews 0 Comment

EUR/USD

Well, after all Obama has nominated Janet Yellen to head Federal Reserve. This news is not surprising as already for several weeks Yellen has been considered to be the most probable candidate for the post. The markets’ attention was riveted on a different event – the publication of FOMC’s September meeting minutes. As you remember, then the size of the bond-buying programme was kept unchanged despite the warnings about readiness for gradual stimulus rollback. The minutes point out that the Committee sees the need for this measure already before the end of the year. So, it’s all small wonder. Bernanke’s caution more…