European FX Outlook: Draghi Addresses EU Parliament On Monday

Political uncertainty in Europe sparked after German coalition talks collapsed with FPD walking away, leaving options for early elections or minority government.

German PPI is expected to rise 0.% m/m and rise 2.7% y/y in October.
ECB’s Lautenschläger will deliver keynote speech by at IIF European CRO Forum in Frankfurt, Germany at 12:15 GMT.
ECB President Mario Draghi will deliver an introductory statement at ECON Hearing of European Parliament in Brussels, Belgium at 14:00 GMT. He appears in news twice at 14:00 GMT and 16:00 GMT as ESRB Chair at ECON Hearing.
ECB Vice President Vitor Constancio chairs policy panel 1 “Fiscal and financial union: complements or substitutes?” at ECB Conference “Public debt, fiscal policy and EMU deepening” in Frankfurt, Germany at 14:15 GMT.
The Bank of England Deputy Governor David Ramsden is due to speak at King's College, in London at 18:30 GMT.
The US Conference Board's leading index is expected to rise 0.6% m/m after falling -0.2% m/m.

With German coalition talks collapsing the political risks in Europe rose and the EUR/USD dropped 80 pips lower from $1.1800 region.
Draghi’s speeches are the top event in European afternoon session with the ECB president expected to communicate current monetary policy stance in the European parliament.

ECB's Draghi said the Eurozone economy is not yet at a point where the recovery of inflation can be self-sustained without ECB’s accommodative policy.Draghi said the ECB has had increasing confidence that the recovery is robust and that this momentum will continue going forward. In terms of monetary policy, Draghi confirmed that the rate hike will come into play “in horizon well past after asset purchases”.
The Eurozone current account surplus rose further expanding to EUR 37.8 billion in September.
The Bundesbank president and the ECB Governing Council member Jens Weidmann said that the economic recovery has progressed further than inflation figures currently suggest and the easy monetary policy needed but clear end date on quantitative easing would have been justified.
Canada’s headline CPI rose 1.4% y/y in October, decelerating from 1.6% y/y in September while the core CPI measure increased 1.3% y/y from 1.1% in September.
The US building permits rose to 1.297 million up 0.9% y/y while housing starts fell 2.9% over the year to 1.29 million in October.
German IFO institute lifts 2017 GDP growth forecast for the German economy to 2.3% from 1.9% previously.
German coalition talks have collapsed over the weekend with the FPD walking away from the talks.