Signs of relief for the Euro!

After weeks of battering, the Euro was given the much needed support from the president of the ECB. Mario Draghi tried to show unity and strength, saying that the Euro is “irreversible”. He continued to reiterate that leaders are willing to do whatever is necessary to help the weaker economies and Euro project. The televised speech was the strongest indicator yet that the ECB will restart their bond purchasing program, forcing bond yields to fall for Spain and Italy. The upbeat speech was absorbed well by the markets, helping the Euro strengthen against the USD and the GBP.

Risk appetite took to the markets with stocks rallying around the world. For the first time in two weeks the USD stronghold was broken. However due to large moves in one day we could see investors profit take going into the weekend.

Major news for the day will be across the pond as the US 2nd quarter GDP is released. Consensus is for growth to decline by 0.5% YoY, a move that could prompt the Federal Reserve to relax monetary policy.

Today's Fundamentals

12:00 Germany: Consumer Price Index (MoM) (Jul) - This is expected to stay the same at 0.4% which will bring stability for the Euro.

12:00 Germany: Consumer Price Index (YoY) (Jul) - Expected to stay the same at 1.7% which will bring stability for the Euro.

12:30 United States: Gross Domestic Product Annualized (Q2) – A slight decrease  is expected at 1.4% from the previous position 1.9% which will be negative or bearish for the USD.

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