Europe

Mario Draghi to speak – Euro will fall

It is Mario Draghi’s turn to speak again tonight and like many other times the markets are standing in line to listen. The ideas that the ECB will communicate are no news. The intention of the ECB is clear to drive the Euro down. This, coupled with Janet Yellen’s most recent address and cut of taper from $25b to $15b, is going to make the Euro weaker. The strength in the USD is going to maintain momentum as more and more US and Europe bankers speak. ┬áThe EURUSD has already made moves on the July 30 2013 numbers but we expect the more significant drop in the Euro to continue towards November 2012 numbers around 1.2700 figures.

 

 

Posted in Foreign Exchange.

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