ECB President Draghi Speaks
Investors are currently keeping their ears and eyes on red alert ahead of President of the European Central Bank (ECB) Mario Draghi’s upcoming speech today, taking place in Washington at a discussion panel set in stone by the International Monetary Fund (IMF) and the World Bank Group.
The meeting comes at a crucial time where any real insight revealed from Draghi, could potentially trigger large moves in the market, especially EUR pairs - as investors anticipate any form of hints on final decisions to be made in the upcoming Key Policy Meeting, taking place on the 26th October; exactly 2 weeks from this date. The meeting is expected to reveal the ECB’s next stimulus agenda and overall effort to reduce additional boosts to the economy on a monthly basis, amid signs current stimulus has in fact been effective and asset purchasing can be reduced from its current figure of around 60 Billion Euros a month.
With EUR/USD soaring to 1.880 this morning and finally finding resistance within this region early afternoon today, it seems investors may already be pricing in the anticipation of a stimulus reduction effort from the ECB. A sign of indicative direction from Draghi could see the EUR move in one direction for next 2 weeks and potentially beyond.