By: DailyForex.com
Though markets were disappointed when Mario Draghi spoke at the Open Forum in London yesterday, it was a different story today. In testimony given to the European parliament, Draghi pointedly said that the Euro’s appreciation since May was viewed by the ECB as a key component of the ECB’s inflation outlook. Draghi said that monetary policy would be reexamined at the next policy meeting. That comment more than any other generated speculation that the ECB would either cut deposit rates even deeper or perhaps expand quantitative easing.
As reported at 10:59 am (GMT) in London, the EUR/USD was trading at $1.0726, down 0.26%; the pair ranged from $1.0691 to $1.0783 in today’s trading. The EUR/GBP was also 0.7061 Pence, down 0.08%, nearly mid-point of the day’s trading band of 0.7041 Pence and 0.7079 Pence.
Key Fed Members Could Prop Up Dollar
The US Dollar, meanwhile, is on the verge of getting some additional support from several members of the Federal Reserve who will be making speeches later today. No fewer than five FOMC members will be speaking, including Janet Yellen, the Fed Chairwoman, Stanley Fischer, the Vice Chair, and William Dudley, the head of the New York branch of the Fed and Vice Chairman of the FOMC. Each of them are likely to give more clues to the timing of the next Fed rate hike which would be dollar positive.