08/ 12/ 2016

Draghi set to unleash more firepower

Today is the biggest day of the week in terms of major events that could influence the FOREX market. The ECB will meet on today and it could decide to announce an extension to its QE program beyond March of next year.  Given the rise in certain peripheral yields lately as well as inflation remaining well-contained (it rose to only 0.6% year-on-year during November), an extension of QE would probably be the most prudent decision for the European Central Bank to make.

The European Central Bank, which has announced a stimulus program back in March 2015 and running to March 2017, or "as long as it's needed," is expected to announce an extension, of at least six months, but to keep the amount of bonds' purchases and rates on  hold. Anything less than that could be read by the market that the ECB is preparing to tighten economic conditions, and will result in the EUR rallying sharply against its major rivals.

07/ 12/ 2016

EUR hike is temporary, all await for ECB meeting

The resounding “no” that resulted from Italy’s referendum on constitutional reform over the weekend placed the future of the euro firmly in the spotlight, yet failed to weigh on the common currency in the immediate aftermath. The euro rebounded powerfully from its new lows against the dollar just two days after the vote, defying any concerns over the referendum’s potential financial and economic implications. 

As per market experts the current hike in EUR is just temporary and we should be able to have a realistic view on it after the European Central Bank’s (ECB) policy decision on Thursday.

06/ 12/ 2016

EUR retracing

Many investors were left to wonder as to why EUR/AED increased to 3.95 during the US session ,after the Italians voted against Prime Minister Renzi's Senate reforms especially after EUR/AED dropped to 3.87 early morning after the referendum results. 

However as per market experts, the increase in EUR/AED pair is just a temporary at the moment and we will have a better idea on where the pair is heading after the ECB meeting on Thursday.