Bernanke knows how to support the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

Bernanke said everything that was necessary to inspire confidence in the markets. At times it is very difficult to understand whether he got into the markets’ trap ( as just a day before he delivered his speech the markets had suffered the sharpest decline in the last few months) or really remains ultra-dovish, though his policy is somewhat warped in some markets. So, Ben Bernanke, delivering a semiannual testimony before the Senate Banking Committee, pointed out the necessity to preserve the stimulating course of the monetary policy. It dispelled the fears which arose after the FOMC’s meeting minutes in January. The more…

Italy pushed down the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

Last night we learnt the preliminary results of elections in Italy. According to these data, there’s no clear winner who would form the government on his own. As is often the case in the complicated economic situation, populism is what electors, exhausted by economic slowdown and austerity,  particularly favour. Concerns that the government can be formed by the anti-European coalition oppressed the markets yesterday evening. The euro quickly lost all its polish, depreciating against most of its counterparts. The systematic selling took EURUSD from the intraday high of 1.3318 to the daily low of 1.3047. Last week we mentioned it many more…

Here comes the old trend

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency feels quite well at the beginning of the week. With the yen and pound being sold, the euro remains the single alternative to the dollar. Again the euro is purchased when the US dollar is quite strong. The major risk for the single currency is posed by elections of the top leadership in the southern countries. The first results of the parliamentary elections in Italy will come today after all polling stations are closed at 2 pm (GMT). Different surveys offer different outcomes:  some speak about the narrow win of Pierluigi Bersani’s democratic party, others think that the more…

Again at the crossroads

By GG Analyst in Reviews 0 Comment

EUR/USD

Monday didn’t abound in news, so EURUSD closed the day just where it started it, i.e. remained at 1.3350. The movements during the day were petty and of speculative nature and therefore can be ignored. The only stats deserving attention yesterday were those on the EU current account, which in December shrank a bit more than expected to 13.9bln against 15.9 a month before and the forecasted decline to 15.3. Anyway, with a broader view of things last year seems to have been quite favourable regarding the euro zone international trade. It was largely due to depreciation of the single currency more…

G20 didn’t dare to name the shame

By GG Analyst in Reviews 0 Comment

EUR/USD

G20 is a dog that barks and doesn’t bite. The joint statement pointed out that the countries would abstain from competitive devaluation of their domestic currencies. Anyway, the states do have some space for maneuver since they are not forbidden to carry out quantitative easing and increase expenditures to support growth of their domestic economies. Actually, that is what all were after when expanding their currency reserves. Thus, the fears that Japan’s politicians would be shaken a finger at and that the Fed would be more cautious proved to be groundless. All this is a good stimulus to ease tension in more…