The euro has rallied yesterday as Mario Draghi, President of European Central Bank, downplayed expectations of expanded quantitative easing. The currency retained its gains today for the most part, though it is sliding back against the Japanese yen.
Draghi talked yesterday about the possibility of additional QE:
Should some of the downwards risks weaken the inflation outlook over the medium term more fundamentally than we project at present, we would not hesitate to act. The asset purchase programme has sufficient in-built flexibility. We will adjust its size, composition and duration as appropriate, if more monetary policy impulse should become necessary.
Yet most analysts though that his speech showed that the ECB in no rush to stimulate economy just yet. Such view was beneficial for the euro.
Several PMI reports were released from the eurozone over Wednesday, but they provided no surprises and did not affect the market much.
EUR/USD rallied from 1.1118 to 1.1184 yesterday and remained near that level as of 2:47 GMT today. EUR/GBP jumped 1.3 percent from 0.7237 to 0.7333 during the previous trading session and stayed there during the current session. EUR/JPY traded at 134.11 following the rally from 133.59 to 134.50.
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