Draghi and Yellen leave EUR/USD in range
Both Fed Chair Janet Yellen and ECB President Mario Draghi are making public appearances, but they have little to show for regarding EUR/USD movements.
Yellen is testifying in Washington, but the topic of her appearance is not monetary policy. While she may be asked questions about interest rates and the economy, later on, she first reads the statement and then answers questions, mostly related to the topic: “Supervision and Regulations of the financial system.” Important as it is, markets do not move on this.
Mario Draghi appeared in the closed-door session in front of German lawmakers in Berlin. That must have been an interesting meeting, to say the least. However, the words that are officially released (no leaks so far) do not rock the boat. The ECB wants first to see the current measures run their course before moving again. The bond buying scheme (QE) is set to expire in March 2017, and will likely be extended, but no details for now.
EUR/USD is at 1.1207 at the time of writing, basically unchanged on the day. The pair remains a significant frustration.