If the narrow ranges that have dominated are going to end in the week ahead, the impulses can come from four sources, it would seem. These are Federal Reserve Chair Yellen’s testimony to the Joint Economic Committee of Congress, the ECB meeting, Chinese economic data and the conflict in eastern Ukraine.
Each of these potential sources are important in their own right, but in terms of market impact, one stands out the most, and that is the ECB meeting. First, though let’s consider the other events.