Euro is logging gains today, after yesterday’s disappointing losses. Euro is finding support as ECB president Mario Draghi continues to hold the line on policy, leading many to believe that more easing won’t be coming at the next ECB meeting.
Today, the European Commission released number that show continued low inflation, as well as relatively high unemployment. However, concerns that the European Central Bank will take action to ease policy at its meeting next week are fading. A lot of that fading has to do with ECB President Mario Draghi and his recent remarks.
Draghi has been sticking to a script that was worked out weeks ago. He talks about gradual and uneven economic recovery, but insists that deflation isn’t a problem. These are the same talking points that he has used regularly — and they are the talking points that are often used to justify the fact that the ECB has yet to take more action to stimulate the eurozone economy. As a result of this, many Forex traders feel that the ECB will not be taking new action next week, and that is helping the euro.
At 14:21 GMT EUR/USD is up to 1.3812 from the open at 1.3709. EUR/GBP is up to 0.8259 from the open at 0.8217. EUR/JPY is up to 140.8885 from the open at 140.0055.
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