EUR doesn’t surrender 1.37

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro/dollar has been depreciating for the recent two weeks. Despite the fact that during the last week the pair has mainly been close to 1.3700, we can’t but notice that bears still contrive to push it lower and lower before bulls gain revenge. Yesterday’s local low preceding the FOMC meeting minutes brought the euro to 1.3634. The minutes themselves proved to be milder than could be expected. The news released before the meeting on April 29-30 was generally positive, so the market expected to see more confidence about tapering and, probably, more certainty about rates. However, ‘flexibility’ in consideration of more…

Yellen against USD

By GG Analyst in Reviews 0 Comment

EUR/USD

USD has been falling after Yellen’s words about ‘continuing commitment’ to economic support from Fed. It means that Fed’s governor remains dovish, just like at the end of the previous year. This softness anyway didn’t break the trend for tapering, set by another ultra-dove, Bernanke. In effect Yellen said that the threat is posed by deflation rather than inflation. In reaction to this comment EURUSD returned to 1.3840 during the Asian session. It is even possible that the growing energy independence of the USA is playing a crucial role here. The thing is that in the 2000s the global economic growth more…

Analysts against traders

By GG Analyst in Reviews 0 Comment

EUR/USD

More often it’s quite the opposite, but yesterday analysts gained the upper hand over traders. A couple of minutes before the release of the EU inflation statistics, the pair came under severe pressure. It tumbled down by 15 pips to 1.3745. Then it was reported about sharper inflation slowdown than expected and the euro/dollar dropped already to 1.3720. However, the impulsive reaction of traders (or were these robo traders, working on news?) to the weaker-than-expected data held just for a moment. Further the single currency got some support on the analysts’ comments that the slowdown from 0.7% y/y to 0.5% y/y more…

Steel nerves of US investors

By GG Analyst in Reviews 0 Comment

EUR/USD

The pressure didn’t weigh on the markets for long. There is a strong feeling that there is little that can distract investors from buying the US stocks: neither overbought markets, nor geopolitical troubles in Europe, nor bringing of the Fed’s rate increase closer by half a year. The decline of the US stock indices caused by Yellen’s comments on Wednesday was bought out yesterday and by now we’ve returned to the same positions as last week and are generally in the area of record highs. Anyway, we can’t say the same about the euro/dollar. Yesterday purchasing of dollars against the EU more…

Markets are waiting for Yellen

By GG Analyst in Reviews 0 Comment

EUR/USD

The market showed a strange reaction to Putin’s speech yesterday. Market participants took positively that Russia didn’t lay claims on the rest of pro-Russian territories of the Ukraine and other post-Socialist countries. Stock markets unanimously set out in the upward direction, whereas the reaction of currencies was contradictory. The initial growth of the euro to 1.3940 (due to risk demand) was followed by a pullback and new intraday lows at 1.3880. If we exclude nervousness caused by the news, the pair has been staying at the same level since the beginning of the week. The focus of attention is expectedly shifting more…