HelenRush

Draghi Helps Euro, or Not?

FX_IDC:USDEUR   U.S. Dollar / Euro
Thursday has come, and all the eyes of forex market is now on the ECB meeting. On Wednesday, EURUSD showed shy attempts to go higher coming closer to 1.20 area. And we see it even though the market understands the ECB is in no rush to taper QE too soon.
Last week we got the headlines on possibility the ECB may move only in December. Now we need to confirm Draghi is in the same stance. If he fails to disappoint the market and turns out to be just a bit more aggressive than the market expects, it will be enough for the euro to break through 1.20 area.
Besides, the US economy stance may be another argument on favor of EURUSD rise. Given the strength of Irma hurricane that may bring devastation to Florida cost, we do not rule out the huge loss the economy will face.
The consequences of such catastrophe could be seen one-two months later by economic indicators. And in such environment the Fed will have hard time hiking the rate. And it means that USD has fewer arguments for appreciation. And thus, EURUSD has all the chances to touch 1.2070 once the strong resistance is broken.
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