Draghi’s speech yesterday was definitely good for the markets, especially for the Forex market.
In short, Draghi said that the ECB is prepared to buy unlimited (what???) amount of bonds of countries that request a European bailout and fulfill strict policy condition (even when Germany’s Bundesbank publicly criticized the decision).
First. I think this is good for the forex market as traders and investors will have more confidence about the Euro zone and they’ll start making their trading and investing decision and this will keep the markets moving (not as we’ve seen them in the last weeks).
Second, and most importantly, you are still going to be trading the EUR and it’s crosses, instead of the Deutsche Mark, Spanish Peseta, French francs and so on an so forth.
Seriously, I think if the ECB stopped their support to even to one of their members, it would be “the start of the finish” of the single currency.
Ok, now let’s wait and see if we get good employment data in the US, and if we do, we’ll get the type of volatility that forex traders like!
You think the coming weeks will be good for us?
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