Draghi Pumps The Markets With Confident Rhetoric

Draghi Pumps The Markets With Confident Rhetoric

The euro (EUR) flexed its muscles yesterday, after European Central Bank (ECB) President, Mario Draghi, appeared confident in his speech and ensuing press questions. He stressed that It was a unanimous decision to keep rates unchanged at 0.75%, a record low. This was received positively by markets which were possibly not expecting this unanimity. Super Mario, as he is popularly known, expressed his belief that Europe still has a way to go but we may witness signs of growth in the second part of 2013. Since assuming the presidency last year, Mr Draghi has been an expert in calming markets in Europe’s favour. He famously pledged to do “whatever it takes” to support the single currency back in July 2012 and so far the markets respond to him positively.

Crude Oil (OIL) saw some exciting trade over the past 24 hours. Pushed by positive Chinese and European data, it broke its 93.82 resistance and may continue to move higher.

Gold (XAU) continues its downward trend against the dollar (USD) trading just below its daily moving average at 1673, but looks at moving above that level today.

The Australian Dollar (AUD) broke above its pennant formation versus the US dollar (USD) abruptly finding higher resistance at 1.0595. It was supported by sound fundamentals from its main export parter China