Euro outperforms U.S. Dollar, following Draghi’s stance on monetary policy

European equities

The euro just reached its best level since December 2014 on Thursday’s closing bell, following the released news that suggested ECB President saw a much stronger economic growth judging by the reported figures. This is after expectations that inflation might rise in the medium term.

President of European Central Bank (ECB) Mario Draghi said on the same day that the euro’s good performance might be a sign of uncertainty in Eurozone economies. He also said that central bank is still looking for a different strategy if ever the United States released a statement regarding the benefits of a sluggish greenback. There are possibilities that ECB will alter its monetary stimulus plans.

On the previous day, the U.S. dollar was outperformed by a much stronger euro, following the news that U.S. Treasury Secretary Steve Mnuchin said a sluggish greenback was not a surprise for him. Several participants from the currency market are foreseeing Draghi to have a certain decision on the euro’s damaging movement versus the greenback.

Looking at the recent performance of the euro, it rose more than 1 percent at $1.2536. This is considered the common currencies’ best level in about three years. It traded 0.61 percent to $1.2482 on the previous trade.

So far this year, the euro already rose as high as 3 percent as it added two digits last 2017. This is the time when Mnuchin released a statement that suggested they can benefit from a sluggish greenback, inciting a massive dollar sell-off.

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