Yellen stopped growth in EUR, but not in the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency didn’t venture to attack 1.37 on Tuesday. Growth was impeded by the market’s anticipation of further tapering by the Fed. It’s noteworthy that Yellen’s claims were quite reserved and generally in line with the traditions of the obscure rhetoric acquired by the Fed’s presidents.  She remarked that should the recovery go on at a forecasted rate, the QE will be curtailed with the current pace (by 10bln monthly). In the meantime, stock traders took her comments optimistically, getting themselves into eager selling. Since the beginning of February the market has recouped three fourths of the losses incurred at more…

The markets quickly recovered from the meeting minutes

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency couldn’t stay below 1.3400 for long. Bulls came to their senses and under the cover of the favourable EU statistics were purchasing the euro. The poor rate of France’s Manufacturing PMI (47.8 against the expected 49.6) was pushed into the background by Germany’s manufacturing stats, which proved to be better than forecasted (52.5 against the expected 52.3). The services sectors of these countries also performed below and beyond expectations accordingly. The flash index for the entire eurozone hit the level of 51.5 in November, which  is slightly better than the October rate of 51.3 and slightly worse than more…

It’s getting hot in the stock market before the holiday season

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex-bulls are getting stronger and growth of the stock market in the absence of other important news is pulling the dollar down. All through the previous week EURUSD was recovering from the blow it had received on the interest rate cut at the beginning of November. But as we live at the time when interest rates around the world are close to zero, the ECB’s cut of the deposit-facility rate and of the refinancing rate by 0.25bp resulted in the reduction of the currency market interest rates by just a few percent points. Thus, to achieve the necessary effect Draghi will more…

Forex disregards Yellen’s softness

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD remains in the uptrend. But yesterday it seemed that we turned on a serious resistance at 1.35. Thus, on the one hand, we’ve got a series of ascending intraday lows, but on the other hand bears are putting up strong resistance at 1.35.  By the end of the week the market has stuck somewhere in between 1.3418 and 1.3490, which were hit during the European and US sessions (now it is 1.3450). It’s remarkable that for all that stock exchanges don’t feel any confusion. For them the situation is pretty clear. The next chairman of the Fed, Janet Yellen, is more…

Central banks’ games

By GG Analyst in Reviews 0 Comment

EUR/USD

Concluding from the recent speech of Janet Yellen, the new chairman of the Fed promises to be even milder than Bernanke. In the comments, prepared for today’s report to the Senate Committee, she says that yet the Fed has got lots of various means to support the economy and the labour market, which are now far from the potential rates. Upon the whole she believes that now it is necessary to provide as many incentives for growth as possible in order to return to the normal mode of the monetary policy. In this case we see a striking difference between the more…