Gradual, but steady growth of USD

By GG Analyst in Reviews 0 Comment

EUR/USD

Since the beginning of May the US dollar has been on the rise. In the previous years it was accompanied by the turn of stock markets from growth to decline. However, this time the situation is a bit different. The single currency lost about 3.5% from May 1 till last Friday and trading is now held close to the lows of March. If the markets are not strong enough to break lower, the next support level will be seen at 1.2650, i.e. the lows of November. This would be a favourable outcome for the EU economy, which is striving to get more…

Inflation slowdown vs bubble risk

By GG Analyst in Reviews 0 Comment

EUR/USD

The dollar keeps retreating, and stock exchanges across the globe are hitting record levels.  Thus, S&P once again set a new historic record, MSCI is finishing April with a 4.4% growth, which is the best rate since June 2012. And TOPIX is heading for April’s end with the best results for the month since 1999. This optimism is wholly rooted in unevenness of the US economic growth. While consumption and the housing market  are doing well, inflation remains low. Besides, this problem is acute both for Europe and United States. The Preliminary CPI for Germany, which was released yesterday, showed that more…

British GDP surprised, will it be the same with the US one?

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday traders took advantage of the dollar’s weakness to sell the euro at a higher price. As we said, optimism in connection with higher certainty about the political situation in Italy proved to be short-lived. The rate cut expected next week is of much greater importance for the markets. But we shouldn’t also forget the factors which may force politicians to take this measure. They are contraction of business and consumer activity and decline of inflation. These factors combined made yesterday’s growth of EURUSD very unsteady. On the way to 1.31 sellers came into play and for a couple of hours more…

Feeble attempts of EUR to decline

By GG Analyst in Reviews 0 Comment

EUR/USD

The market still cannot decide on the direction. EURUSD continues to flirt with 1.30, though it actually has been above it since April 8. From the technical side, the growth perspectives of the pair are darkened by a strong bearish candlestick of April 17. Now charts show a kind of the “head and shoulders” reversal pattern, which can be confirmed together with breaking through 1.30, if it takes place in the near future. This move may be targeted at 1.2750, which at the same time can become the 5-month low and eventually spur sales in the pair. The US news background more…

Bears gradually gain the upper hand

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro-bears got the upper hand. The risk-aversion in the markets didn’t pass by EURUSD, which sank to 1.3015 yesterday closer to the end of the active New-York session. The explosions at the Boston Marathon also had their share here. For now three people are reported dead and about a hundred injured, actually this is the first terror attack since September 2001. Now there are certain concerns that the blasts will be followed by a continuous reaction of the USA, of course at a smaller scale than the intrusion into Iraq, but anyway it is certain to arouse stronger militaristic sentiments more…