EUR/USD at 1.2780 Before Draghi Speaks

The euro traded less than 0.1 percent from a 14-month low before European Central Bank President Mario Draghi speaks at a conference today.

Europe’s shared currency headed this month for the worst drop in 1 1/2 years after Draghi said in an interview published yesterday that policy will “stay accommodative.” Reports this week showed slowing regional manufacturing and faltering German business confidence. A gauge of the dollar was poised for its highest close in four years before U.S. data tomorrow that may confirm a pickup in growth and consumer sentiment. The Aussie fell before Reserve Bank Governor Glenn Stevens speaks.

“Just looking at the gap between European and U.S. business confidence, it’s clear the euro should be falling and the dollar rising,” said Yasuhiro Kaizaki, a vice president for global markets in New York at Sumitomo Mitsui Trust Bank Ltd. “The long-term trend for euro weakness isn’t going to change.”

Bloomberg

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