Dovish Approach Likely From Mario Draghi

Dovish rhetoric is expected from European Central Bank President Draghi this afternoon.

Cautious Tone Expected from Draghi Today

The Euro has produced an interesting mid-term outcome, and today’s European Central Bank Press Conference will add fuel to fire.

The Euro has produced a tight range recently as it hovers near 1.24, but as ECB President Draghi speaks – it is a certainty the Euro will be impacted. The ECB is expected to remain cautious because inflation in the European Union remains meek and there are growing concerns of a trade rift developing with the States.

Weaker Euro Could be the Goal

The ECB will not change their interest rate today, nor will they change their dovish language. The Euro may be positioned to test support levels near 1.23 and should it break below – it could test the 1.22 juncture versus the U.S Dollar.

It should be remembered that a weaker Euro would not be a poor result for the ECB in the short term, particularly if the U.S were to impose tariffs on certain European products.

In the short term, we believe the Euro may be negative. The mid-term and Long term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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