Euro Gains In The Market After Draghi’s Comments
By Daisy Joseph
Euro which was facing a tough time after the Brexit talks gained significantly after the pressure surrounding the French elections subsided. As Macron took the lead during the first round of the election, Euro gained steadily in the market. On Thursday, the President of the European Central Bank, Mario Draghi commented that there will be no change in the inflation outlook of ECB. He added that there is not sufficient evidence to change ECB’s path at this moment. This boosted Euro in the forex market.
EUR/USD pair traded as high as 1.0933 during the start of the day. Later the pair lost 0.22% to continue trading at 1.0880. Draghi’s comments had a direct impact on the value of Euro. The currency value increased after he said that the downside risks are reduced. He added that the risks are not broadly balanced. He confirmed that the recovery in the Euro region is solid after the March meeting.
The gains immediately reversed as Draghi said that there will be no change in the inflation outlook. His comments indicated that ECB won’t be interested in dropping the monetary stimulus program. While answering questions, he said that ECB won’t be changing the policies based on the election outcomes of other countries. The policymakers concluded that they want to sustain the stimulus program, which
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