Where is it better?

By GG Analyst in Reviews 0 Comment

EUR/USD

Reduction in the Fed’s asset purchases is more and more favoured by the FOMC’s members. Earlier we heard from Lockhart about readiness to reduce bond buying already this autumn. Yesterday we heard something of the kind from Evans, Chicago Fed president. This official, who in most cases takes up a dovish position, said that he expects faster economic growth in the second half year and that the Fed is likely to start to curtail its bond-buying round already this year. Just a few  weeks ago such claims would have caused significant shifts in Forex, but now to counterbalance improvement in the more…

Changes for the better

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex trading on Thursday was very nervous. The difference between the intraday top and bottom made 130 pips. It’s noteworthy that the rally towards 1.3300 was supported by quite positive statistics from Europe, but the main movement took place in the US session and was spurred by shifts in the US debt market. The latter is heading for higher yield. The minimal 10-year treasury yield of 1.39% about a year ago is now quite far from the current rates, showing the yield of 2.57%. Don’t be surprised if soon last month’s high of 2.76% is broken through and a fresh high more…

EUR and GBP to test important resistances

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar remains in the uptrend. Last week the level of resistance moved from 1.3000 to 1.3050. And the resistance of bears is only at 1.3170 now. Technically,  a “flag” is forming. And usually it spills over into continuation of a trend. In our case, should 1.3170 be broken through with confidence, traders will get a buy signal with the approximate target at 1.3570, which is our long-term target. Talks about further growth will be sensible only after these levels are reached. Yet the ability of the single currency to stand firm above 1,36 seems to be more and more doubtful more…

USD corrects to the downside

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency came under pressure yesterday evening on the words of  Jörg Asmussen that the ECB’s intention to “keep the rates at or below the current levels for an extended period of time”  goes beyond  a 12-month horizon. Officially the CB has announced that these words shouldn’t be treated as precise directions. However, we, like the majority of market players, have become firm in our suppositions. For example, when the Fed started to use the same phrase, the period of time to keep the rates low went beyond a 12-month limit (actually, by now it’s been already more than two more…

The ECB and BOE emphasize differences of their and the Fed’s policies

By GG Analyst in Reviews 0 Comment

EUR/USD

The European CB and a bit earlier the Bank of England contributed to decline of their domestic currencies by 0.9 and 1.3%, respectively. The differences in the economic situations of these countries made the heads of these CBs accentuate the differences of their policy and that of the USA, which is about to negotiate the stimulus rollback. Thus, at yesterday’s press-conference Draghi put a special stress on the phrase that “the key ECB interest rates would remain at present or lower levels for an extended period of time”. Just two press-conferences ago he said that the Bank “never pre-commited”. It was more…