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  • Market News
  • 07 November 2013 :: Meeting Of European Central Bank And Draghi’s Conference Are Key Events of the Day
07 November 2013

Meeting Of European Central Bank And Draghi’s Conference Are Key Events of the Day

By Kristina Leonova: Chief Analyst in the Investment Research Department

Meeting Of European Central Bank And Draghi’s Conference Are Key Events of the Day
Today, some of the key places in the economic calendar are occupied by the meeting of the European Central Bank on monetary policy, and the conference of Mario Draghi after it. This time, it may happen that the head of the Central Bank will prepare the markets for the possible decrease of the rate in December.

The point is that inflationary pressure in the Eurozone at the moment is on 4-year minimum levels, and continues to fall. If the fall is going to continue, it will start threatening the region with a deflation on a Japanese manner. The European Central Bank can't simply stay idle in such situations, and if the regulator will take a decision on further mitigation, it is going to have a significant impact on the Euro. At the moment, the support level is on a price of 1.3480, and it’s breakdown can direct the pair to the area of 1.34. The more we are going to receive positive data from the USA, the more possible it is going to be that EUR/USD will move towards the level of 1.32 within the next few weeks.

American stock markets showed inconsistent dynamics yesterday. The Dow Jones managed to reach a new historical maximum having increased by 0.8% reaching the level of 15746.88 points, supported by growth of stock quotations of oil and gas monsters, Exxon Mobil (+1.3%) and Chevron (+2.7%). Also the computer giant IBM (+1,3%) had some influence. At the same time Nasdaq decreased by 0.20% and finished the trading session on a level of 3931.95 points, S&P 500 increased by 0.43% reaching the level of 1770.49 points.

The Leading Index of the USA published yesterday, showed vigorous lifting by 0.7% having exceeded market expectations, and showed that there is no reason for concern regarding the health of the American economy, at least until the end of this year. In this context, the index of volatility of the American stocks, VIX, fell yesterday to 2-month minimum, having reflected very complacent spirit of investors.

Today, investors will be very cautious before the release of important data from the USA and the decisions of the European Central Bank and Bank of England alike. As a whole, investors expect weak data on gross domestic product and the labor market, which will promote further continuation of the program of quantitative easing in the USA up until spring next year.
About the author
Kristina Leonova
Kristina Leonova
Chief Analyst in the Investment Research Department

Kristina Leonova is an up and coming market specialist - currently in the process of obtaining The Chartered Financial Analyst Degree in CFA Institute.

She began her career at Liteforex (ex. Mayzus) at only 20 years old, holding the position of the Assistant of the Chief Financial Officer.

She has since become invaluable to the Company, holding the position of Chief Analyst in the Investment Research Department, and now is also responsible for our world renowned market reviews.

She has a keen eye and a good gut instinct when it comes to analyzing the markets, always staying at the top of her game, with her work often being published on other websites and news vendors.

Mayzus is excited to welcome her as our new, top financial analyst.

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