Draghi hints at more stimulus and Trump counters with tweet, citing FX 'manipulation' by ECB and EU gaining 'unfair' advantage

Draghi hints at more stimulus and Trump counters with tweet, citing FX ‘manipulation’ by ECB and EU gaining ‘unfair’ advantage

1. EURUSD hit by Draghi comments about the prospect of further stimulus in order to jolt inflation, EU Bourses surge

The EURUSD weakened after Draghi’s comments regarding more stimulus may be appropriate but technically hasn’t changed much in anticipation of the BIG FED meeting tomorrow. Certainly, Draghi’s comments are a headwind for the Euro bulls but the FED meeting tomorrow is still the main risk event for this week. IF the FED appears to be patient on rate cuts then we would expect the EURUSD to selloff aggressively and retest the lower end of its range. However, if the FED appears to be willing to start cutting interest rates soon then it may lend the EURUSD some support.