Mario Draghi, President of the ECB, is expected to present a new bond purchase program today during the ECB meeting. The bond purchase program is expected to imply the purchases of 3-year bonds. A bailout will take place on a government’s request and under certain conditions, including austerity and banking control. The program is also expected to curtail the liquidity within the eurozone in order to prevent an increase in the money supply. Jens Weidmann, President of the German Bundesbank, seems to be the only central banker disapproving the new program.
Most investors assume that the ECB will leave the key interest rate unchanged. Any disappointment in the result of today’s ECB meeting may result in the Euro weakening against the US Dollar.
The USA is to publish its employment report today. This is a major report in advance of tomorrow’s unemployment stats. The Services PMI report is also scheduled for today.
Today’s forecast:
According to the Commodity Trading Department of , gold is expected to test 1699-1700. If an H1 price bar closes below 1698, it may trigger a bearish move to test 1690-1691. On consolidating below 1690, we may see the price going down to 1675. Alternatively, a failure to stay below 1698 will give way to 1715, 1725.
Silver is expected to test 33.0. A break above 33.0 will give way to 33.25, 33.50. If the price fails to consolidate above 33.0, we may well see the price going down to 32.75-32.60. A break below 32.60, will give way to 32.50, 32.25.
