EUR/USD at 1.3660 Showing Resilience

The euro hovered near five-week highs against the dollar on Friday and analysts say it could be headed for further gains now that the prospect of negative interest rates in the euro zone appears to be off the table.

On Thursday, European Central Bank (ECB) President Mario Draghi reassured investors that the central bank had no plans to ease monetary policy again, sending the currency soaring. The bank also upgraded its 2014 gross domestic product growth forecast for the euro zone by 0.1 percentage points to 1.1 percent.

Last month the ECB cut its key interest rate by 25 basis points to 0.25 percent. Just two weeks ago reports that the ECB was contemplating negative deposit rates delivered the euro a blow although the currency soon bounced back.

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