2016-10-25 12:48:27

As it became known last week, the ECB left interest rates unchanged and ECB President Mario Draghi said that the ECB might extend bond purchase program. The QE program in Eurozone includes monthly redemption of European assets worth of 80 billion euro. Base interest rate in Eurozone is at the level of 0.0% since March 10, 2016, the rate of refinancing for commercial banks (interest rate at which commercial banks can place their funds on the accounts of the ECB) is negative and at a level of -0.4%.

Today at 18:30 (GMT+3) Mario Draghi, ECB President will give a speech and market participants expect that he will clarify future plans of the ECB.

On Monday, trading in the European stock indices is mixed. Stoxx Europe600 reached the flat line at the closing session, German index DAX has grown by 0.5%, British index FTSE100 has dropped by 0.5%, while French CAC has grown by 0.4%.

Yesterday the index EuroStoxx50 has grown by half of a percent with the closing price at the level of 3093.0.

With the opening of today's European session, the index EuroStoxx50 has increased on the positive data on German IFO in October and in anticipation of today's speech by Mario Draghi.

If the ECB President Mario Draghi confirmes his recent statements about possibility of expanding QE program in Eurozone, the pair EUR/USD may reach the lows at the level of 1.0860, while European indices will receive an incentive for further growth.

EuroStoxx50: The ECB left the rates unchanged.  Fundamental analysis for 25/10/2016