EUR/USD up to 1.3670 as ECB Signals no Imminent Action

The euro traded at five-week highs against the dollar early in Asia on Friday, having powered higher overnight after the European Central Bank gave no fresh indication that it would ease policy anytime soon.

While ECB President Mario Draghi said the bank was ready to take fresh policy action to support a fragile recovery, he was light on details including whether the bank would use a negative deposit rate.

Draghi also noted that liquidity in the banking system had improved since the last cash injection, or LTRO, and attached conditions for any repeat. These comments saw German bond yields jump to seven-week highs, which in turn helped underpin the euro.

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