Which direction FED and ECB may use?

After U.S. dollar became weaker at the beginning of the week, it may recover today by good economic forecast and signal of FOMC. According to the high expectation of U.S. PPI 0.4% at 19.30 combined with forecast of rising crude oil inventories at 22.00, these factors may give positive for USD and Dow Jones. Wall Street may hold steady or rise up. Moreover, investors are focusing on FOMC meeting minutes that may increase investor’s confidence about rising up interest rate in December. In my point of view, today maybe a strong buy for U.S. dollar so greenback may recover and edge higher again.
I suggest to keep eyes on ECBs president speech at 21.30 GMT+7 today. Draghi may speak some signal about decreasing QE even we have high confident that ECB may reduce the limit on bond purchases. We should emphasize the Quantitative easing in EU till the European Central Bank may do the new decision. Today EUR/USD may move flatly and gold price may drop lower by stronger dollar. European stock markets may move in both zones: green and red, it depends of the drag crisis in Spain.

By Niramon Nitnitiphruet
Financial Analyst, Olymp Trade

Olymp Trade Review