fbpx

Euro May Fall as Draghi Argues for Firmly Dovish ECB

The British Pound outperformed in otherwise quiet Asian trade as prices retraced after political uncertainty jitters triggered a dramatic selloff on Friday. Market closures in China, the UK and the US made for lackluster activity amid thinned liquidity conditions elsewhere in the G10 FX space.

From here, remarks from ECB President Mario Draghi amount to the only bit of noteworthy scheduled event risk. The central bank chief is due to speak at the European Parliament, where he will almost certainly opine on the near-term outlook for monetary policy.

The markets' ECB policy bets have firmed somewhat over the past month. This is not entirely surprising: the headline inflation rate has averaged 1.8 percent thus far in 2017, effectively meeting officials' mandated target of putting price growth below but close to 2 percent.

A recovery in crude oil prices probably explains a lot of recent CPI gains however. Once their effect is rebased out of year-on-year calculations, inflation may again look weak. For their part, the markets seem to be unconvinced. Priced-in expectations put price growth below 1 percent in two years.

With that in mind, Mr Draghi will need to forcefully push back against tightening speculation lest the markets' front-running of would-be stimulus withdrawal derail the ECB's reflation effort. That may weigh on the Euro, pushing it broadly lower against the major currencies.

Source: Daily FX

The ADP Regional Employment Report - November 2017

Related Posts

 
 
     
 

Latest Spot Rate

 
10 December 2019
SUZHOU, China, Dec. 10, 2019 /PRNewswire/ -- Innovent Biologics, Inc. ("Innovent") (HKEX: 01801), a world-class biopharmaceutical company that develops and commercializes high quality medicines for the treatment of oncology, autoimmune, metabolic and...
10 December 2019
LONDON, Dec. 10, 2019 /PRNewswire/ -- A global leader in online multi-asset trading services and currency data and analytics, OANDA Global Corporation has further strengthened its client offering with the appointment of Greg Niebank as Head of Produc...
10 December 2019
Business Breakfast with OANDA on Jazz FM - MarketPulseMarketPulseHome/Indices/Market Pulse/MediaShare 0OANDA Senior Market Analyst Craig Erlam joins Jazz FM’s Michael Wilson to discuss the changing political view towards HS2 and Heathrow in the UK, ...
10 December 2019
- With Wirecard's unique Unified Point-of-Sale solution, merchants only need one terminal for all digital payment options- Merchants benefit from increased sales and improved customer satisfaction and retention- In addition to Malaysia, installment p...
10 December 2019
 The strong jobs report last Friday boosted risk appetite to the detriment of safe havens but lifted oil prices. The agricultural sector is mixed ahead of today’s World Agricultural Supply and Demand Estimates (WASDE) report from the US Department of...
How It Works | About | Contact | Privacy Policy | Advertise
© 2009 - 2019 ChatPips. All Rights Reserved. Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.