EUR/USD Surges to 1.3590 as ECB Talks Down Deflation

The euro zone area will experience low inflation for a protracted period of time but it was not at risk of deflation, European Central Bank (ECB) President Mario Draghi said Thursday, leading to a pop in the euro.

Draghi sought to play down concerns over deflation in the region, arguing that the euro area was not like Japan in 1990s. The euro was 0.6 percent higher at $1.3608 in mid-afternoon trading Thursday.

His comments came after the European Central Bank (ECB) and the Bank of England (BoE) left interest rates unchanged, as both central banks awaited fresh forecasts in the coming weeks to decide on what new policy action was required.

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