What does Draghi have to say about Euro?
September 21 at 13:30 GMT the ECB President Mario Draghi will attend the 2nd European Systemic Risk Board annual conference in Frankfurt, Germany. Market analytics will be paying close attention to any comments made by the President on how the ECB observes the current state of European Economy and its financial stability. It can set a positive or negative trend on the Euro in the short term period.
How to trade it:
Choose EURUSD or EURGBP
Focus on Short Term options
At 13:30 GMT open News tab on the Real Platform and find the news about Draghi’s speech
Check what Draghi said: if he acknowledges the possible lowering the interest rates the Euro will be falling down for a short period. On the contrary, if Draghi gives a hint that the ECB is planning to increase it, the Euro will start growing.
What’s the forecast:
The market players are hungry for any clues about what the ECB interest rate decision might be. The majority of analytics are inclined to that Draghi will be very careful in choosing the words and there will be no serious changes in the Euro policy before the next conference in October.
The last time on the ECB conference he left the interest rates unchanged yet again (base interest rate: 0.00%, deposit rate for banks: -0.4%). However, the Euro went forward on the markets despite Draghi’s warnings against its high volatility and strength.
Why it’s a great trading opportunity:
Mario Draghi, born in 1947, is a famous economist and a President of the European Central Bank since November 2011. As a head of the ECB, which controls short term interest rates in the Eurozone, he has more influence over the Euro than anyone else. His comments can set a new short-term positive or negative trend on EURUSD and EURGBP. High volatility is expected on both currency pairs.