ECB President Draghi Speaks in Frankfurt
EUR/USD has been surprisingly stable this morning floating just under 1.18 with relatively no pressure to breach back through this zone. We cannot brush this aside, however, as ECB President Mario Draghi is scheduled to speak in Frankfurt at the ECB Conference. Investors are expecting Draghi to hint at the possibility of Eurozone stimulus being reduced in the
very near future. Should he hint on this further than trading back above this level could be expected by end of day.
There’s no real urge for this however, the political crisis in Catalonia dubbed the ‘Catalan Crisis’ has led Spain to cut its growth forecasts for 2018 as the economy is struggling with
the effects left behind from this. In a sense, this is reducing the tension off Draghi today and means what we could be expecting is less of a discussion towards monetary policy and in
fact, more coverage pointing towards shifts in the agenda for the Eurozone in general and the future implications of resolving what damage has been dealt with the crisis.