Double blow to EUR

By GG Analyst in Reviews 0 Comment

EUR/USD

The moderate buying of the single currency on Wednesday morning stumbled over the wave of sales. The growth momentum of the pair was halted at 1.3060. Roughly in the same zone there had been a reversal a day before , but this time the bears were prepared better. By the middle of trading in the USA the pair had fallen to 1.2922. There are two reasons for the bears to be that self-confident. First of all, the auctions were not a success – three of the four bonds of different maturity demonstrated a higher yield. In the meantime the yield of more…

Trim your sails to the wind

By GG Analyst in Reviews 0 Comment

EUR/USD

But for comments of Bundesbank President Jens Weidmann, the single currency would have continued to slip down yesterday. His words that the current policy of the ECB poses a threat to the monetary policy of the region have triggered a short rally in EURUSD. From the daily low of 1.2990, hit at the beginning  of trades in Europe, the pair grew to 1.3074. However, this mini-rally proved to be short-lived. Very soon eager selling brought the pair back to 1.3020. Actually, all these moves are trifle ones, but there is one fundamental moment. Today we will probably see breaking of the more…

Europe: stirring at the bottom

By GG Analyst in Reviews 0 Comment

EUR/USD

We can’t say that yesterday  passed under the banner of the dollar weakening, thus meeting our expectations. Yet despite the news vacuum in the markets the single currency managed to recoup some of its losses after the payroll release on Friday. For the most part of the day EURUSD was hovering around 1.30, but during the US session it made slight gains and had grown to 1.3050 by the end of the day. The stats on Germany’s foreign trade were quite positive, demonstrating a better growth both of exports (which means improvement outside) and imports. Usually, growth of imports is treated more…

An opportunity for the rate cut in EU

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency is still in the downtrend. On Friday EURUSD was depreciating. At some point its quotes went below 1.30 and now the pair is trading right at this level. Thus, already now the decline in the pair is deeper than at the beginning of the year. The dollar index is at the highest level for the last 6 months. Yet, it’s worth mentioning that in August and July the index was supported by decline of the euro. Now support is coming from other currencies (the yen, pound, Loonie, Aussie), while the euro feels quite well. However, in view of more…

Buy it if you dare

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke spoke again to the Congress and for the second time confirmed his adherence to the bond-buying policy. Traders have caught at the phrase that the size of asset purchases can grow as well as decline. The markets , which see only what they want to see, got ablaze with the hope for the possible increase in the programme, should fresh signs of economic slowdown appear. Here we should also note that Bernanke and his team intend to rev up if the GDP growth rate goes below the trend one. Yet Germany insists on  stopping bond purchases immediately after the situation more…