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The European Central Bank (ECB) President Draghi’s speech is likely to hog the limelight in a data-light European session ahead. Draghi is due to deliver the opening remarks at 0700 GMT at the 9th ECB Statistics Conference, in Frankfurt.

Draghi is likely to speak on the topic of “20 years of ESCB statistics: What’s next?” and hence, not much is expected on the monetary policy or Eurozone economy. However, markets will still keep close ears on any hawkish remarks hinting towards an ECB rate hike over the coming months.

At its June 14th monetary policy meeting, the ECB announced a halving of its bond-buying scheme to a rate of €15 billion in Q4 2018 and an end to purchases from 2019.

How could it impact EUR/USD?

According to Omkar Godbole, Analyst at FXStreet, “the cross-driven sell-off in EUR/USD could gather pace if the European  equities  feel the pull of gravity in response to trade tensions. Further, the EUR pairs could turn volatile during the European Central Bank (ECB) President Mario Draghi’s speech. The central banker could reiterate that interest  rates  will remain at record lows for a long time.”    

Key Notes

EUR/USD Forecast: directionless around 1.1700 mark, Draghi eyed for fresh impetus

EUR/USD path of least resistance remains up as it looks for a new direction – Confluence Detector

About Draghi’s speech

As part of his job in the Governing Council, he gives press conferences in the back of how the ECB observes the current European economy. President’s comments may determine positive or negative the Euro’s trend in the short-term. Usually, if he shows a hawkish outlook, that is seen as positive (or bullish) for the EUR, while a dovish is seen as negative (or bearish).