Market Snapshot – Dovish Draghi Helps the Stock Markets
The only event of note today was the speech from Draghi which happened during the London session where he expressed his continued concern with the inflation. We have seen that the incoming data from the Eurozone has continued to be good, especially the ones from Germany but that seems to be having little effect on the inflation which continues to remain low. This has been the main concern of the ECB over the last few months and we are sure that this would have been one of the main reasons why the ECB chose to extend the QE for one more year. But a dovish Draghi would mean that there is no danger of the QE being stopped anytime soon and this is generally good for the stock markets in Europe.
In other news today, there are continued reports from the US about the investigation into the role of the Russians in the US Presidential elections and it looks as thought this may not end anytime soon. This placed the dollar under pressure which further added to the choppiness in the markets that we have been seeing since the beginning of the week. The volatility has certainly increased but that has not meant that any specific currency are absolutely bullish or bearish in any way and this has remained so since the beginning of the week. We believe that this ranging and consolidation would continue in the upcoming week as well.
This article was originally posted on FX Empire
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