ECB President Raises Concerns About Strong EUR

European Central Bank head Mario Draghi has underlined his concern about the recent rise in the euro’s exchange rate.

Draghi said Monday that “the recent volatility in the exchange rate represents a source of uncertainty which requires monitoring.”

The euro has risen from $1.05 at the start of the year to around $1.19. A further increase could weigh on exports from the eurozone and restrain its ongoing economic recovery. Draghi had also expressed concern about the euro at his Sept. 7 news conference.

Draghi told the European Parliament’s economic and monetary affairs committee that the current economic recovery was “firm and broad-based.” The ECB is expected to outline at its Oct. 26 meeting how it will start phasing out its bond-buying stimulus, currently worth 60 billion euros ($71 billion) a month.

Draghi repeated his stance from the Sept. 7 meeting by saying that “the bulk of these decisions are going to be taken at the next meeting in October.”

via Mainichi

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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