Euro Steady Ahead Of Draghi Talk

 The euro began the week above $1.36 after a bumpy month following the European Central Bank’s decision to ease in June. The common currency traded at $1.3625 at 7:15 GMT as investors awaited comments from the heads of both the US Federal Reserve and the ECB this week.

With the two central banks moving in separate directions, the euro has been under some pressure, however this week’s talks aren’t expected to reveal any new information that will have a major impact on either currency. US central bank chair Janet Yellen is due to speak before Congress on Tuesday and Wednesday to outline the bank’s outlook on the US economy. Based on her most recent public comments, Yellen is widely expected to continue promoting the bank’s accommodative stance.

ECB President Mario Draghi is due to speak later on Monday, but isn’t likely to depart from the ECB’s requests for patience while the bank’s stimulus kicks in.

Meanwhile, speaking at a campaign rally over the weekend, German Chancellor Angela Merkel warned that eurozone governments that don’t stay within the region’s debt and deficit limits are posing a major threat to the entire bloc. According to Bloomberg, Merkel used the problems with Banco Espirito Santo SA as an example of how one nation’s issues can cause turmoil in the global marketplace. The aftermath of the Portuguese bank’s missed payments, she said, demonstrates how quickly the region can lose credibility.  She warned that if the entire block doesn’t stick to the new rules designed to prevent another financial collapse, the whole region will suffer.