Forex - Euro jumps on fall tapering prospects US dollar sinks

© Reuters. Euro jumps on fall tapering prospects, U.S. dollar sinks

Investing.com - The euro rose to almost two year highs against the U.S. dollar on Thursday after European Central Bank President Mario Draghi said the bank would discuss the next steps in its monetary stimulus program in the fall.

was up 0.94% to 1.1616 by 10.34 a.m. ET (02.34 p.m. GMT), its highest level since August 24, 2015.

Speaking at the ECB’s post policy meeting press conference Draghi said the governing council was “unanimous in setting no precise date on when to discuss changes in the future,” before adding that .

Draghi said the risks to the growth outlook in the euro zone are broadly balanced and the region is now enjoying a “robust” recovery.

He also noted that growth has not yet translated into ‘stronger inflation dynamics’, pointing out that headline inflation is being dampened by weak energy prices.

Draghi added that a ‘substantial degree of accommodation’ is still needed.

The single currency was also higher against the pound and the yen, with advancing 1.14% to 0.8942 and climbing 0.95% to 130.17.

The Bank of Japan kept monetary policy on hold overnight and .

The warning on inflation reinforced expectations that the BoJ will lag other central banks in tightening monetary policy.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.36% to a fresh 11-month low of 94.3, pressured lower by the stronger euro.

The dollar has weakened in recent days amid mounting speculation that the subdued inflation outlook for the U.S. will once more this year as policymakers have indicated.

The prospect that other central banks may join the Fed in policy tightening has also fed into dollar weakness.

The dollar has also been pressured lower as indicated that President Donald Trump’s other legislative efforts, such as overhauling the tax code and implementing fiscal stimulus could face difficulties.

The dollar was little changed against the yen, with at 111.97, not far from Wednesday’s three-week lows of 111.54.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Read Again Forex - Euro jumps on fall tapering prospects, US dollar sinks : http://ift.tt/2ttDg33

Let's block ads! (Why?)