Draghi comments support the euro

Apart from against the euro and sterling, the greenback managed to regain some ground against most of the G10 currencies.

Source: Bloomberg

With ECB President Mario Draghi speaking, there was always a strong chance we’d see some volatility. True to form, he delivered.

The main focus this time was on the bond markets and Draghi moved to calm things down, saying that what matters is to see an equivalent effect on investment, consumption and inflation even if data improves.

These comments appeased investors who were growing wary that the ECB may pull the QE pin early. With order somewhat restored, the euro crept higher and EUR/USD printed a high of $1.1450.

However, the price action seems to have stalled in that region and the pair is undergoing some consolidation. As we approach $1.1500 I feel traders will be tempted to take speculative shorts given there is a downtrend resistance that kicks in in that region.

Click to enlarge

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.