ECB's Draghi & FED's Yellen today!

ecb and fed

First, at 14:00 h (GMT) ECB’s President Mr.Draghi have a speach, after at 15:00 h (GMT) FED’s Chairman Mrs.Yellen have a testifies. Who will move the market stronger and could we hear something we don’t know? We will see soon, get ready!

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One comment

  • christopherglendinningmiller

    Oh dear, the two most influential central bankers have spoken and no one is really any the wiser. EUR/USD since right in the middle of the range that for the last month. The perceived wisdom is that when (and I am assuming when rather than if!!) there is going to be a really powerful trend develop with a very directional move. The question is whether it will be up or down. The upper 20 period Donchain Chanel on the daily chart reads 1.5338 and the lower reads 1.2617. The upper comes from the high on 3rd February 2015 and the lower from the low on 29th January 2015. The separation in 272.1 pips which is reminiscent of much of last year. There is good reason for it to break long. The market is currently very short the Euro and long the Dollar. It maybe that there is a loss of patients (same word as used by the FED) and positions get closed triggering stops with massive overdue short squeeze. Alternatively the ECB is adopting an unprecedented programme of quantitative easing which should significantly weaken the Euro sending the market hurcerling south. Either scenario could play out though I do tend to prefer the later. I do think that EUR/USD needs to test the lows of 0.82311 made in October 2000.I expect the same scenario to play out as with USD/JPY when the low of 79.760 made in April 1995 was tested back in 2011/2. On the other hand I maybe completely wrong and there may be another test of the highs made in July 2008. Having said that, it will happen though I think the lows will be tested first. Looking at the monthly chart every candle since May last year has been bearish though this months does look like it just might buck the trend – however nothing is certain until it closes at the end of the week.

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