The bears attack

By GG Analyst in Reviews 0 Comment

EUR/USD

Triggering of stop-orders in EURUSD drove the pair to 1.3519 yesterday, but at these levels sellers entered the game. As a result, the daily close was slightly negative, 1.3450, but now we can observe some growth in the dollar, which pushed the rates even lower, to 1.34. In the charts we see that yesterday’s reversal is absolutely identical to the situation on February 7. The same downward wave took the pair from 1.357 down to 1.335. If this time the decline is of the same scale, we may see EURUSD somewhere between 1.3250 and 1.3270. Yesterday’s upsurge of the single currency more…

G7 provokes profit-squeeze in the recent trends

By GG Analyst in Reviews 0 Comment

EUR/USD

The biggest news yesterday was the joint statement made by the finance ministers and CB heads of G7 member-countries. The leaders managed to “push” into one abstract of the text not only justification for their measures to weaken the domestic currencies, but also the hope that all the countries of this mighty handful will keep a low profile. The analysts quickly commented that they were very much upset by such reserved statements and no open call for action. It’s hard to say what the markets were expecting then as all the previous comments of G7 andG20 were of the same kind. more…

Draghi is not satisfied with the more expensive euro

By GG Analyst in Reviews 0 Comment

EUR/USD

Mr Draghi met our expectations. Not that he spoke openly about depreciation of the euro or threatened with quantitative easing to weaken the euro, but still he pointed out that the increase in the euro, though reflecting that the eurozone is again trusted, may hamper the recovery. In our opinion, the markets were especially sensitive to the phrase that quick growth of the euro may impair price stability. And this implies that the CB will be ready to act should the euro keep growing. At the moment investors are puzzled which of the CBs is the least tolerant to the high more…

Back to the January trends

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the single currency was retracing. More so, it returned to the trends of January. The euro, commodities and stock exchanges were growing, while the yen, sterling and a number of commodity currencies (AUD and CAD) were under a heavy selling pressure. Once again the good performance of the euro was fed by positive news from Europe. The Final Services PMI, released yesterday, was significantly revised up as compared with the initial estimate. The index of activity in the services sector of Germany has grown to 55.7 against 52.0 a month ago and the initial estimate of 55.3. It’s a good more…

Correction or reversal?

By GG Analyst in Reviews 0 Comment

EUR/USD

Those, who missed volatility and interesting trends in the second half of the previous year, now should be happy about the current state of things in Forex. The single currency rose by 2 figures up to the 15-month high last week and this week for less than 2 days again dipped below 1.34. In January the pair was consolidating below this level for about two weeks, while breaking through the level promised a powerful and continuous rally. The rally proved to be relatively powerful, but not continuous. Back then we already noted that the single currency was appreciating against the dollar more…