Euro Climbs as Draghi Refuses to Talk About Negative Rates

The euro jumped against the US dollar and the Japanese yen today on signs that the head of the European Central Bank does not consider implementing negative interest rate yet. The currency sank versus the Great Britain pound.
The shared European currency was under pressure from talks about negative rates. Yet ECB President Mario Draghi said today that there are no plans for such action, at least not now. Draghi stated during the event organized by German newspaper Sueddeutsche Zeitung:

Let me plead with you — don’t try to infer from what I say today anything on the possibility of negative rates on the deposit facility.

As for macroeconomic data from the European Union, it was mixed. PMI figures from France were bad, while German indicators were good. Consumer confidence remained poor.
EUR/USD advanced from 1.3436 to 1.3476 as of 22:49 GMT today. EUR/JPY surged from 134.41 to 136.31, trading near the strongest level since October 2009. EUR/GBP was down from 0.8341 to 0.8320, erasing the earlier rally to 0.8356.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *