Draghi has fallen off the Euro and reminded about the economic forecasts
Wednesday, January 16, at the end of the day the Euro slightly fell against the U.S. dollar and the British pound. He remained under pressure after comments of the ECB President. Mario Draghi said in the European Parliament that recent economic indicators in the Eurozone were worse than expected and that the economy still needs significant stimulation in the conditions of uncertainty of the external background. Market participants found the bell that the regulator may extend the QE program.
In addition to Draghi, the Euro was under pressure from the cross Euro/pound. Traders were cautious ahead of the vote of no confidence in the British government, headed by Theresa may. The results of the vote became known that Mei won with 325 votes and 306 votes against.
The pair Euro/dollar was limited to the extent 1,1425. The external background has caused many to exit long positions, which opened in anticipation of the upward correction.
Today there is no forecast scenario, as the analysis tools indicate the uncertainty. If you look at the pricing model and the horizontal support, which was broken in the last hour, the sellers moved to 1,1355. Given that the US dollar is trading on the upside to all major currencies except the yen, then we know where to expect a rebound.
At 13:00 the Eurozone will release the consumer price index for December and declare the change of construction output for November.
At 14:00 will be released monthly report of OPEC. At the same time, a speech will be presented by member of the ECB Sabine Lautenschlager.
At 16:30 the U.S. will release the manufacturing index Philadelphia fed in January, as well as inform about the change of issued building permits and number of bookmarks of new foundations for December and the number of initial claims for unemployment benefits.
Analyst of information and analytical center,