The results of the speech of the head of ECB Draghi

In his speech, the head of the European Central Bank, M. Draghi, spoke in a “pigeon” tone. This had a negative impact on the European currency. The main negative factor of Draghi’s speech was the statement that negative rates will not reduce the profits of European banks. That pointed to a lack of hints on the possibility of tightening monetary policy in the euro area.

As a result, the euro index remains under pressure and is trading near significant support at 93.00. The breakthrough of this level will open the way to the levels: 92.60-50 and 92.00. Also, euro is in the oversold zone and further decline in the index will be difficult due to the absence of significant drivers.

Recommended for reading: https://esterholdings.com/en/category/novosti-rinka/ and https://esterholdings.com/en/category/tehnicheskij-analiz/

Hanzenko Anton