Euro Trades Flat on Draghi’s Speech at Bank of England Open Forum



Euro undergoes a flat session intraday

The Euro ended on a relatively flat note versus the US dollar yesterday in the absence of any relevant economic releases. There was some volatility owing to the speech by ECB (European Central Bank) chairperson Mario Draghi at the Bank of England Open Forum to discuss further integration in the European banking sector.

Article continues below advertisement

Expectations of a statement by Draghi moved markets initially

The Euro-dollar currency pair wasn’t waiting for much data to be released yesterday. Understandably, the focus was mostly on Mario Draghi’s statement at the Bank Of England Open Forum. The currency pair initially fell on speculations of comments by Draghi on further easing. However, the speech turned out to be a nonevent for the markets, as there was hardly any mention of monetary policy. Thus, the currency pair started to regain strength. On the data front, the German month-over-month WPI (wholesale price index) came in at -0.4% against forecasts of a rise of 0.2%.

Impact on the market

In yesterday’s performance of currency-based ETFs linked to the euro, the ProShares UltraShort Euro ETF (EUO) fell by 0.53%. EUO is inversely linked to the euro. In contrast, the Guggenheim Currency Shares Euro ETF (FXE), which has a direct relation to the euro, rose by 0.23%.

In terms of German ADRs (American depositary receipts) trading on US exchanges, SAP AG (SAP) rose by 1.3%. The French ADR Alcatel-Lucent (ALU) rose by 0.51%. The Greek ADR National Bank of Greece (NBG) ended on a significantly poor note, falling by 7.7%.


More From Market Realist