Preview: Draghi’s speech at ECB Forum in Sintra

The European Central Bank (ECB) President Draghi’s speech is likely to hog the limelight in a data-busy European session ahead. Draghi is due to deliver an introductory speech at 0800 GMT on the second day of the ECB Forum on Central banking in Sintra, Portugal.

He is scheduled to speak for about 30 minutes and hence, he could throw some light on the central bank’s monetary policy outlook, in the face of faltering economic growth and escalating trade war.

Michael Hewson, Chief Market Analyst at CMC Markets, noted: With ECB President Mario Draghi leaving at the end of October, and the economy in Europe floundering, today’s speech in Sintra, Portugal at the ECB central bank forum, could offer further clues as to how much further the ECB can look at monetary easing, over and above the September TLTRO program.” 

“With inflation once again sliding back close to 1% in May, markets are slowly coming to the conclusion that the ECB is operating at the limits of what it can actually do by way of conventional monetary policy,” Michael added.

It's worth noting that during his speech on the first day of the Sintra Forum on Monday, Draghi did not touch upon the topic of monetary policy, although he did speak about bettering the Eurozone.

Keynotes

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About Draghi’s speech

As part of his job in the Governing Council, he gives press conferences in the back of how the ECB observes the current European economy. President's comments may determine positive or negative the Euro's trend in the short-term. Usually, if he shows a hawkish outlook, that is seen as positive (or bullish) for the EUR, while a dovish is seen as negative (or bearish).