Investors Brace for Draghi and Powell Speeches

ECB President Draghi will speak soon, and Fed Chairman Powell will make an important appearance in Washington tomorrow. Inflation data will come from Germany Tuesday.

Draghi Expected to Stick to Mantra, ECB Narrative Not Expected to Change

European Central Bank President Mario Draghi will deliver a monetary policy and inflation statement in Brussels soon. And traders may not expect the ECB President to change the central bank’s narrative quite yet. The ECB has stuck to its mantra that European Union economic data is improving, but inflation is subdued. And the fact is the ECB is correct. The Euro has gained early this morning but remains within the lower depths of its mid-term range. The Draghi speech today, and the testimony which will come from the U.S tomorrow via Fed Chairman Jerome Powell will trigger volatility in forex. European equities have opened higher today, following the gains made in Asia today and the solid outcome from Wall Street on Friday.

Anxiety Remains in Markets, No Surprises Wanted from Jerome Powell

The number of important speeches coming from the leaders of the ECB and Fed cannot be overstated. But traders also need to keep their eyes on data which will come tomorrow from Germany via a Consumer Price Index reading, and the Core Durable Goods Orders and Consumer Confidence figures from the States. Wall Street is expected to open higher today and other global equity markets have been a bullish short term, but early February’s steep declines have not been forgotten by investors. Meaning the anxiety level of traders remains high as they hope for no major surprises and less volatility.

Gold Surges Higher in Early Trading, Dynamic Price Action Expected

Gold continues to turn in head-scratching results for short-term traders caught on the wrong side of its whirlwind. The precious metal has jumped higher this morning and is near 1338.00 U.S Dollars an ounce. Gold’s surge should be viewed carefully and traders need to make sure they are ready for dynamic action.

Draghi Testimony Beginning Soon, U.S Housing Sector Figures

The New Home Sales data from the U.S may prove of interest for a trader at 15:00 GMT.

• 14:00 PM GMT E.U, ECB President Draghi Testifies in Brussels
• 15:00 PM GMT U.S, New Home Sales

Yaron Mazor is a senior analyst at SuperTraderTV.

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