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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD battles with 1.1700 as the market mood turns sour

Poor German data and renewed concerns about a default of the Chinese Evergrande property giant undermined investors’ sentiment, pushing them into the dollar’s safety.

EUR/USD News

GBP/USD accelerates its slump, trades around 1.3650

GBP/USD is under strong selling pressure, trimming most of its post-BOE gains. Concerns about the global financial health and slow moves towards tapering weigh on markets.

GBP/USD News

XAU/USD hangs near multi-week lows, around $1,745 ahead of Powell

Gold struggled to capitalize on its attempted intraday recovery move. Hawkish Fed/BoE, rising bond yields acted as a headwind for the metal. Resurgent USD demand exerted additional pressure on the commodity.

Gold News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

PBoC bans crypto trading activities and a plethora of associated services, labeling it “illegal.” Overseas cryptocurrency exchanges providing services to Chinese residents will be investigated in accordance with the law. 

Read more

Evergrande, VIX and yields make for choppy day ahead

Equity markets remain focused on Evergrande as rumours of a possible default on overseas debt swirl. The market appears to be on the hunt for negative news, which leads us to conclude that stocks are going lower in the short term.

Read more

Forex MAJORS

Cryptocurrencies

Signatures