Preview: Draghi’s speech at ECB conference on CESEE in Frankfurt


The European Central Bank (ECB) President Mario Draghi’s speech is expected to be closely eyed in a data-light European session ahead.

Draghi is due to deliver the opening address at the ECB conference on Central, Eastern, and South-Eastern European countries (CESEE).?", in Frankfurt. The conference is based on the theme of "Resilience to global headwinds. His speech is scheduled at 0815 GMT and is expected to last for about 15 minutes. 

How could it impact EUR/USD?

According to Omkar Godbole, Analyst at FXStreet, “the yield differential will likely narrow in the EUR-positive manner, helping the EUR/USD pair capitalize on Friday’s bullish breakout if the European Central Bank (ECB) President Draghi sounds less dovish during his speech at 08:15 GMT today. The central bank said last week that it would delay its first post-crisis rate hike until the middle of next year and Draghi offered to pay banks if they pass on the cash borrowed from the ECB to households and firms. The gains in the EUR/USD, however, will likely be short-lived, if the US reports a better-than-expected consumer price inflation for May at 12:30 GMT today.”

Meanwhile, “the Technical Confluences Indicator shows that EUR/USD is hovering above a dense cluster of support lines at 1.1327. The lines include the Simple Moving Average 5-4h, the Fibonacci 38.2% one-day, the Bollinger Band 1h-Middle, the previous 4h-low, and the BB 15min-Lower. The next support is even stronger. 1.1280 is the convergence of the powerful SMA 100-1d, the Fibonacci 38.2% one-week, and the Fibonacci 161.8% one-day. On the other hand, resistance is weaker. The line to watch is 1.1368 which is the confluence of the Fibonacci 161.8% one-month and the 200-day SMA. Further above, weaker resistance awaits at 1.1415 where we find the Pivot Point one-month R3 waiting for EUR/USD,” as cited by FXStreet’s Senior Analyst Yohan Elam.

Key Notes

EUR/USD forecast: Developing uptrend awaits Draghi’s speech/US CPI for confirmation

EUR/USD: Consolidating - Commerzbank

ECB’s Villeroy: France is resisting the unfavorable environment rather well

About Draghi’s speech

As part of his job in the Governing Council, he gives press conferences in the back of how the ECB observes the current European economy. President's comments may determine positive or negative the Euro's trend in the short-term. Usually, if he shows a hawkish outlook, that is seen as positive (or bullish) for the EUR, while a dovish is seen as negative (or bearish).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD's range play continues ahead of Eurozone Consumer Confidence

EUR/USD remains directionless despite the drop in the US treasury yields. An above-forecast Eurozone Consumer Confidence will likely push the pair higher to the trendline falling from June highs. 

EUR/USD News

GBP/USD sits at 2-month tops ahead of key Brexit talks

Fresh optimism surrounding the Brexit deal propels GBP/USD to a two-month high. Brexit talks between the EU's chief negotiator Michel Barnier and UK Brexit Secretary Stephen Barclay will be the key.

GBP/USD News

USD/JPY: Bears eyeing break below 107.45

USD/JPY trades modestly flat, with the bias leaning to the downside, as we wind down into the close for the week following a data-heavy number of sessions which have left more questions unanswered and the outlook murky. 

USD/JPY News

Gold holds on to recovery gains amid trade/political pessimism

In addition to bouncing off multi-month-old rising trend-line, Gold gains support form recently downbeat trade/political headlines while taking the bids to $1,500 during Friday’s Asian session.

Gold News

Markets unmoved by Fed cut and pause

The Federal Reserve’s latest twist in monetary policy, reducing the fed funds for a second time in two months and then pausing for instructions has left markets without a clear direction on interest rates. Equites ended mixed.

Read more

Forex MAJORS

Cryptocurrencies

Signatures