Getting Ready For Another Round Of Central Bankers Today
Today is another one of those days when the central bankers feel like TV stars. All the attention will be on them once again. One of them, the RBA (Royal Bank of Australia) assistant governor Edey already had his time this morning. His speech wasn´t really dovish and that´s why AUD/USD is the best performing major forex pairs this morning if you have a look at the forex chart.
The ECB president Draghi will make his presence at the German Bundestag in the afternoon. He´s not very welcome there. In fact, that´s like the dragon´s den for Draghi because we all know how much the Germans fear and hate the monetary easing programme that the ECB has been applying for nearly two years now. Their past history of hyperinflation which brought the Nazis to power keeps haunting them.
Recently, the economic situation in the Eurozone has somewhat improved as well, so I don´t think the ECB will take any additional steps in the near future regarding the QE (quantitative easing) programme. Actually, it was Draghi himself who said last week that although the pace of the recovery is slow, the economic recovery is real nonetheless.
EUR/USD is already feeling jittery
Although with a lot of volatility, in the last several months we have seen some improving economic data from the EU. So, don´t expect much from Draghi's speech this afternoon. This is not the right moment to announce anything new, apart from not being the right place obviously. The EUR/USD buyers are closing some of the long positions just to be sure they are out of the way in case there are any surprises, as this forex pair slides down this morning.
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