Global macro overview for 08/02/2017:
Interesting comments from Bundesbank President Jens Weidmann regarding further ECB interest rate policy (he is also European Central Bank Governing Council member) hit the newswires yesterday. Weidmann said that ECB is currently not at a point where it can end an expansionary policy, so the quantitative easing will last as long as it has to. Moreover, he said, when the euro economy grows, interest rates will rise again, but for now, the Eurozone needs more economic and fiscal policies to help growth. In conclusion, quite dovish comments from BUBA President regarding the possible rate hike in the Eurozone were issued.
Let's take a look at the EUR/USD technical picture at the 4H time frame. The bears have clearly broken out below the golden trend line and now the price is heading towards the next technical support at the level of 1.0619. If this support is violated, then we have a full reversal in progress.
