Draghi: Eurozone Still Needs Substantial ECB Stimulus

Draghi: Eurozone Still Needs Substantial ECB Stimulus


On Monday, the U.S. dollar index settled at 97.30 vs. a basket of major currencies since markets closed for holidays. 


Euro was flat vs. the Greenback, as ECB President Mario Draghi gave no indication of any change to ECB's forward guidance; “The Euro zone growth may be improving, but inflation remains subdued and still requires substantial stimulus” said Mario Draghi yesterday, soften expectations for the ECB's June 8 policy meeting.

Elsewhere, Greece's finance minister Euclid Tsakalotos commented from his side saying that the country had met all its reform obligations, and it was now up to international creditors to agree on how to make Greece's debt sustainable and help the nation emerge from its financial crisis.

Technically, the single currency could trade sideways, in anticipation of important releases from the US and Euro-zone.


The Sterling pound recovered slightly yesterday and rose to $1.28, after Theresa May's weekend election poll recovery. Technically, Cable could trade under pressure during the next period due to the UK general election, which will be held next week.


Oil prices rose slightly yesterday with the market remaining cautious, with increases in U.S. drilling activity that undercut OPEC's efforts to eliminate excess supply. Meanwhile, the U.S. crude settled below $50, as markets are awaiting US inventories data.

The most important economic events:

  • USD Personal Consumption Expenditure Core (YoY) (APR): (GMT 12:30) – Important – Forecast (1.5%) – Previous (1.6%).
  • USD Consumer Confidence (MAY): (GMT 12:30) – Important – Forecast (120) – Previous (120.3).
  • NZD RBNZ's Wheeler news conference on FSR: (GMT 23:00) – Important

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based. Read More
Read More
Mail Call Chat