Ladies and Gentlemen,
Tomorrow at 12:45 BST we get the ECB rate announcement no
change is expected, so why is this an Event Risk?
At 13.30 the President of the ECB, Mario Draghi chairs a
press conference on his 67th Birthday, he will be his dovish self,
highlighting external risk, so what is new?
Since the last meeting the concern was Greece now it is
China and in that time period €/$ has rallied from 1.0809 to 1.1714, over 900
points.
The important factor is the ECB are the first major Central
Bank to take centre stage after a volatile summer, there will be concerns about
growth, a deflationary environment and new external risks beyond their control.
The ECB is still in the easing cycle and I expect rallies to
be sold and the 200 day moving average at 1.1291 to be the first major
resistance level.
Good Luck
Anish S. Lal @anish8fx
FX & Precious Metals, Atom8
Financial Services LLP
2nd Floor, Centenary House, Palliser
Road, London W14 9EQ, UK
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