The U.S. dollar rose on Monday, trending higher throughout the session as investors bet that Europe could see continued dovish monetary policy going forward, although geopolitical uncertainty remained elevated and could keep a cap on the buck’s advance.
In comments delivered on Monday, European Central Bank President Mario Draghi said that despite signs of improving economic conditions, the region’s economy was not yet strong enough to withdraw stimulus. He added that recent pick ups in inflation were driven by energy prices, which can be volatile, rather than driven by economic improvement, as would be the case for core inflation.
“We were waiting to see if he would say anything more hawkish than we’ve been getting, but his argument seems to be that we’re just seeing headline inflation, not core inflation for the moment,” said Jane Foley, senior currency strategist at Rabobank.
via MarketWatch
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Alfonso Esparza