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EUR/USD binary signal - ECB's Draghi Speech - 18 Jun 2018

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21:00 GMT
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The economic calendar for the day is relatively light with no major market moving events scheduled. Amid a quiet day, the ECB President, Mario Draghi is scheduled to speak later in the day at 18:30 GMT.

The speech by the ECB President comes on the back of last week's ECB monetary policy decision. The central bank left interest rates unchanged as it signaled that the central bank's quantitative easing program would end by December 2018.

As per the schedule, the current pace of bond purchases at the amount of 30 billion euro would end in September 2018 and a reduced amount of 15 billion would continue until end of December this year.

The central bank noted that interest rates will however remain unchanged atleast until summer next year. The ECB has left the all key interest rates including the refinancing rate and the repo rate unchanged at last week's meeting.

The decision came amid reports showing that inflation in the Eurozone had increased largely on account of higher fuel prices. Headline consumer prices inched higher to 1.9% on the year ending May 2018. This was the first time in decades that consumer prices were close to the ECB's 2% inflation target rate.

However, core consumer prices remained well below the 2% threshold but nonetheless inched higher to rise 1.1% on the year. The ECB signaled a cautious move on its monetary policy.

Today's speech by Draghi comes at an ECB forum in Portugal. Investors will be looking to hear for any comments on future guidance on monetary policy.

Based on the above, today's trading signal is EURUSD, the shared currency fell sharply last week but price action was seen to be stabilizing around the 1.1600 - 1.1560 level of support. After a sharp decline we expect to see the EURUSD closing higher on the day.

eurusd signal 18 jun 2018

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