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The DAX is trading at 9584, up 0.4%. Market volatility and trading volumes are expected to be low as traders await the interest rate decision from the European Central Bank at 12.45pm and the ECB press conference at 1.30pm (London times). Interest rates in the eurozone are currently at 0.25%; the consensus is for interest rates to remain unchanged but the press conference could provide us with a clue as to what the ECB is thinking.
In recent months, some economists have been calling on the ECB to tackle its deflation problem. Mario Draghi is in no rush to lower interest rates or begin a stimulus package, however. I feel he will instead continue to claim that deflation is not a problem and that no change in monetary policy is required in the near future.
The DAX has recovered most of the losses it sustained due to the situation in Ukraine, but it has been caught in a range between the 100-hour moving average of 9540 and the 200-HMA of 9590. If Mr Draghi hints at negative interest rates in the future we could see the DAX go above 9600, but we need to see it fill the gap from Friday before we can retest the 9800 mark.