The broken attack on USD

By GG Analyst in Reviews 0 Comment

EUR/USD

The US employment statistics proved to be favouable, though all the short-term growth potential of EURUSD had been “eaten away” by the market movement a day before. As a result, the dollar bulls failed to bring the pair below the lows of the previous day, yet the decline from 1.3435 to 1.3312 can hardly be called unimpressive. So, what was good about the employment statistics? First of all, the number of new jobs in October exceeded 200K (204), moreover the rates of the preceding two months were also revised up. Thus, the average rate for the last three months is also more…

Denying to the last

By GG Analyst in Reviews 0 Comment

EUR/USD

It’s a funny thing: already today the debt ceiling negotiations should come to the end otherwise default will occur already tomorrow, but for all that the markets manage to see the positive in the news from Washington. They are merely denying the problem. From the psychological point of view, the markets are just at the first stage – denial – and they still have to go through anger, bargaining, depression and acceptance. Yet, the other stages will scarcely be favourable for stock indices and the US dollar. Now the most probable way out is seen in another compromise with the debt more…

Tapering may start already before the year end

By GG Analyst in Reviews 0 Comment

EUR/USD

Well, after all Obama has nominated Janet Yellen to head Federal Reserve. This news is not surprising as already for several weeks Yellen has been considered to be the most probable candidate for the post. The markets’ attention was riveted on a different event – the publication of FOMC’s September meeting minutes. As you remember, then the size of the bond-buying programme was kept unchanged despite the warnings about readiness for gradual stimulus rollback. The minutes point out that the Committee sees the need for this measure already before the end of the year. So, it’s all small wonder. Bernanke’s caution more…

Divergence of the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

The US stocks continued their upsurge yesterday, Dow Jones grew by 0.3%, having recouped the previous decline and is now just 0.3% from its historic high. To some extent optimism in the stock markets (and simultaneous selling of the dollar) can be justified by Janet Yellen’s promise to continue stimulation of the economy, which functions poorer than its potential allows. This optimism boosts purchases of commonly-known risk-sensitive currencies, including the euro. EURUSD formally remains in the downtrend and on Friday the decline seemed to be even faster. However, as we warned, the level of 1.30 is too important both for bulls more…

ECB’s and Fed’s members keep up risk demand

By GG Analyst in Reviews 0 Comment

EUR/USD

It is not the first time when at the beginning of Draghi’s conference the markets mainly sell the euro, but eventually switch over to buying of the currency. First Draghi pointed to the fact that the forecasts for the second quarter had changed for the worse. Yet he didn’t suggest anything new to maintain confidence in the suffering banking system. It surely disappointed the markets, though later they tempered justice with mercy on the news that the Bank would continue to hold 3-month auctions to supply unlimited liquidity. Besides, it is prepared to do that as long as needed, another year more…