Euro Gains Ground Despite Draghi’s Willingness to Ease

After some struggles yesterday, the euro is gaining ground again, rising against most of its major counterparts. Even though ECB President Mario Draghi continues to say he’s willing to ease monetary policy further, the euro is currently heading higher — and it’s 1.8 per cent higher against the dollar.

Even though the euro has periods of struggle against its major counterparts, particularly the US dollar, the 19-nation currency has managed to trade mostly within a range for the past few months — even with dire warnings from policymakers about the potential expansion of the ECB’s quantitative easing program.
However, Forex traders and others are no longer paying much heed to Mario Draghi. Since the beginning of September, Draghi has said a few times that the ECB is considering boosting stimulus. It hasn’t happened yet, though, and the effectiveness of such rhetoric in weakening the euro in order help the 19-nation economy is waning.
With the euro refusing to fall to parity with the US dollar, and Draghi’s comments having little effect, the ECB might actually have to make some policy moves in order to weaken the euro sufficiently.
At 12:26 GMT EUR/USD is up to 1.1387 from the open at 1.1358. EUR/GBP is up to 0.7492 from the open at 0.7400. EUR/JPY is down to 132.2540 from the open at 136.3450.

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