Today at 17:00 (GMT+3) - ECB President Mario Draghi will deliver a speech before European Parliament. It is expected that Mario Draghi will outline prospects of the monetary policy before the meeting of the Bank, scheduled for 8 December.

While the US Fed is planning to increase interest rate, the ECB seems to continue to adhere to soft monetary policy.

Recent statements of the representatives of the ECB show that the Bank plans to continue program of asset purchases, which is now amounts to 80 billion euros (88 billion USD).

Last week, Benoit Coeure, who is one of six members of the ECB Executive Board, said that European Central Bank would not abandon the program asset purchases. Despite all efforts of the Bank, inflation in Eurozone is close to the zero, which is below the target level of 2%. Most economists expect that the Central Bank will prolong the program, at least for another six months.

Earlier, Mario Draghi said that interest rates in the Eurozone would be raised, when economic growth and inflation will increase. Meanwhile the ECB faces the threat of deflation.

And one of the tools to curb inflation is to expand QE program in Eurozone and lower the main interest rate.

The main interest rate (refinancing rate for the commercial banks) is now at the level of -0.4%.

The difference in the monetary policies of the ECB and the US Fed is the main driver of EUR/USD. The pair EUR/USD will continue to decline.

EUR/USD: Euro is under pressure.  Fundamental analysis for 28/11/2016

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