After the Holiday, what should we expect? – by – Michael Oyebamiji
February 16, 2016Yesterday, the US and Canadian market was closed for trading and these saw a little volatility in the global market. however, there were some major events in Europe as ECB president Mario Draghi testified before the European parliament yesterday. he highlight global economic risk and downside risk on some European Banks. the President said ECB might step-in again to rescue the Euro-zone economy by increasing Quantitative easing purchase. Euro bears took advantage of this comment and prices dropped down to 1.113 which is a good support level. In New Zealand, The finance minister disclosed that the is a slump in the demand for diary which might have some negative impact on the economy. it will be recalled that dairy transaction has a impact ion the New Zealand economy.
Looking at the market today, Eurusd seems to have bounced off from the support at 1.113 despite the dovish tone of Draghi and commodities are back again on a rally.
Market will be looking forward to FOMC statement tomorrow in other to ascertain if the FED will potentially hike rates in March or put it on a hold. The FED chairman during her testimony ruled out the possibility of negative rates as she tagged it “illegal”.
