What Will Praet Have to Say about the ECB’s Future Monetary Policy?

Fundamentals

Today the following corporate news of note comes out.
The change in first quarter retail sales in New Zealand. Unfortunately, by the time this overview is published, the number will already have been released.
At 11:45 am GMT traders will be listening to the speech by ECB Board member Peter Praet. Among other things, Praet’s speech might touch on what the European Central Bank will do next about monetary policy.
Also today at 12:30 pm GMT the Empire Manufacturing Index, which is based on a survey of New York manufacturers by the Federal Reserve Bank of New York, will be published.

Stocks

Noteworthy among corporate reports are data from TUI Group, a German travel company whose shares are traded on the London Stock Exchange.
Russian companies reporting include VTB PJSC, whose shares have been declining for the last few months. Technically, the situation favors the bears. Fundamentally, it is noteworthy that the company’s assets declined in 2016 compared to the previous year. At the same time, the bank’s liabilities fell to RUB 11,185,000,000. Moreover, to judge from fundamental indicators, we can’t say that the company is showing strong numbers, which will ultimately result in a reduction in capitalization. Its dividend policy also remains unchanged at RUB 0.0012 per share, which is lower than the industry average.

Currency Market

Today we’ve selected the GBP/NZD and NZD/JPY currency pairs for analysis.
Technically the GBP/NZD pair continues to rise. The pair reached the target of the double bottom pattern on the weekly and mid-term charts. The target was 1.8880. By the looks of it, we should now expect a downward technical correction of the pound. The intermediate short-term target might be 1.8560, where the 9-day EMA is located. Oscillatory analysis (Williams %R, Relative Vigor Index, RSI, etc.) also shows signals of a continued decline. If the bears continue to attack, the mid-term target will be 1.7720.
One of the scenarios for the NZD/JPY pair could be that the New Zealand dollar is in a corrective down wave. The pair is now sitting at 77.70 yen, which is a 78.6% Fibo correction relative to the last fifth wave. We might see growth wave B, which in turn might have a complex internal structure.

Nikolay Dudchenko, Olymp Trade analyst

Olymp Trade Review