The euro is set to power higher, even after jumping to a two-month high against the U.S. dollar on Thursday following upbeat comments from European Central Bank (ECB) President Mario Draghi, analysts told CNBC.
The central bank kept rates unchanged at 0.25 percent at Thursday’s policy meeting. In the post-meeting press conference the ECB President dampened expectations that a shift in monetary policy was on the cards.
“The ongoing recovery is expected to proceed, albeit it at a slow pace,” Draghi told journalists in Frankfurt, Germany. He reiterated that the euro zone was facing a “prolonged period of low inflation,” but declined comparisons with Japan, which suffered deflation during the 1990s.