EUR Higher After Draghi’s Comments

The U.S. dollar fell against the euro on Wednesday after the head of the European Central Bank said the ECB needed more time to assess whether to expand its stimulus program.

ECB President Mario Draghi said the bank was ready to act but needed more time to determine whether the slowdown in emerging markets was likely to be temporary or permanent and to assess the driving forces behind declining commodities prices and recent turbulence in financial markets.

Draghi’s comments to the European Parliament’s Committee on Economic and Monetary Affairs sent the euro higher against the dollar after the common currency earlier hit its lowest level against the greenback in two and a half weeks at $1.11050.

The euro also rallied to a one-week high of 73.47 pence against the sterling after Draghi’s remarks EURGBP=D4.

“The ECB is really in no rush to add stimulus,” said Alfonso Esparza, senior currency strategist at Oanda in Toronto.

Via Dollar slips vs. euro after ECB’s Draghi remarks on stimulus program | Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza