Global macro overview for 18/11/2016:
ECB President Mario Draghi was a keynote speaker at the 26th European Banking Congress in Frankfurt. During the speech, he assured that ECB will continue to act as warranted by using all instruments available within the mandate. He mentioned, that eurozone recovery still relies to a considerable degree on monetary policy and it has been more broad-based with less difference in economic performance across countries. Moreover, he added that inflation convergence towards 2% needs to be durable, even with a reduction in monetary accommodation. In conclusion, Mario Draghi delivered a typical speech, especially remarks about inflation expectations. Otherwise, some hawkish statements have been made many times previously regarding the eurozone recovery and ECB quantitative easing program.
Let’s now take a look at the EUR/CAD technical picture in the daily time frame. The market reverses after the US presidential election results and now the bears are in full control over this market. The price is trading below all of the moving averages and it looks like the bears might want to test the near-term technical support at the level of 1.4247 soon. If this level is clearly violated, then the next technical support will be seen at the level of 1.4180.
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