Global macro overview for 24/08/2017:
During his yesterday's speech at Lindau in Germany, the President of the European Central Bank (ECB), Mario Draghi did not provide any new information that would be relevant for the Euro. He stated that QE and the forward guidance were successful and emphasized, that monetary policy is bringing new challenges. More in the context of the future of monetary policy, the Chairman of the Bundesbank J. Weidmann told German newspaper Boersen Zeitung. He said there was agreement that the QE program could not be abruptly closed and that changing its parameters would have negative consequences. This obviously dovish statement indicates that the chances of a change of ECB monetary policy before the end of the year are negligible.
Today begins the central bankers' symposium in Jackson Hole. Investors still have to wait, as Janet Yellen and Mario Draghi will be speaking tomorrow evening. The Euro bulls dominate the markets on hawkish expectations before the European Central Bank (ECB) President Mario Draghi's Jackson Hole speech. Although Draghi will unlikely let out any new and important details regarding the future of the ECB's bond purchases program, an optimistic view on the Eurozone's economy would enhance the chances of a hawkish policy action in September 7 meeting and keep the bulls in charge of the market.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market is still trading inside of a narrow range between the levels of 1.1660 - 1.1845 as the market participants expect the Yellen and Draghi Jackson Hole speeches. Larger time frames outlook remains bullish.
