The final ECB Press Conference of 2012 will take place Thursday.
The Euro has halted in it’s race back to the 1.30/1.31 level. Approaching support from October and September, it appears to be turning bearish quick.
Draghi made it clear in November that “Economic activity in the euro area is expected to remain weak”. (ECB)
Wednesday, Euro retail sales fell the largest percent in over two years. According to Forex Factory, this month Euro retail sales fell 1.2% confirming Draghi’s negative Euro comments in November.
It is unlikely that any positive words will be heard at Thursday’s meeting. With the Euro crises still in full swing, it is unlikely any positive perspective will be cast on the coming year. 2013 has the potential to be another 2008 if U.S. risk aversion kicks in from the fiscal cliff and the euro zone continues to fall apart.
Depending on what particular statements Mario Draghi makes, tomorrow’s markets may see major volatility.
Here is a look at the current EUR/USD Daily situation. Feel welcome to leave your comments below on what you think the EURUSD will look like in the next week.