FX markets entered a "wait & see phase" with low liquidity this morning as investors are awaiting policy clues from Chair Yellen and President Draghi. USD is up against Japanese Yen but lost some ground to Sterling which is correcting higher. Dollar also lost a bit to AUD and CAD.
I expect Chair Yellen to send a mildly hawkish message which should be very supportive for American dollar. The most anticipated however is ECB President's speech that will take place in the afternoon US time and already evening in Europe. We might not see much of the action then, but watch out for opening gaps in euro pairs when the markets re-open on Monday. I expect some serious euro depreciation to at least 1.1650 levels, or perhaps even as low as 1.1490 next week.
I expect Chair Yellen to send a mildly hawkish message which should be very supportive for American dollar. The most anticipated however is ECB President's speech that will take place in the afternoon US time and already evening in Europe. We might not see much of the action then, but watch out for opening gaps in euro pairs when the markets re-open on Monday. I expect some serious euro depreciation to at least 1.1650 levels, or perhaps even as low as 1.1490 next week.
