This week a series of meetings of central banks are being held. Investors' attention will be focused on ECB President Mario Draghi, who may announce a plan to reduce the volume of repurchasing assets from the current 60 to 20-30 billion euro. In the case of a more aggressive action, we expect it to strengthen the single currency.
Also in relation to the dollar, which since the beginning of the week showed a good momentum, the market has stopped and is waiting for the appointment of a new head of the Federal Reserve. However, pending the adoption of a new tax reform is also providing support to the dollar. If the Senate and the Congress reject the offer of the President regarding the tax reform, it is possible to expect a decline in the reserve currency.
The parliamentary elections held on Sunday in Japan caused a drop in the yen, which continued yesterday. It is also expected that Shinzo Abe will continue to pursue loose monetary policy, which will contribute to a reduction of the yen in the future.
More news see here.
