Euro rose against the dollar after hawkish remarks from ECB president

European equities

Euro beats the U.S. dollar on Friday following the news that ECB President Mario Draghi said that its policy makers would talk about changing their monetary program but didn’t mention any specific season.

The common currency recovered some ground at $1.1625 following its advance as much as $1.1659 on the previous day. This is considered the euro’s best level since August 2015. However, it was flat versus the Japanese yen at 130.13 after advancing last Thursday to 130.76 and on track to rise more than 0.8 percent for the week.

The comments of European Central Bank (ECB) President Mario Draghi suggesting that there aren’t any exact date that has been set for conversing the central bank’s bond-buying program weighed on the common currency.

U.S. Bank Private Client Group’s chief investment officer Bill Northey said that Draghi’s remarks were seen as non-dovish even if the ECB didn’t actually tip their hands to when its will start the normalization of their immense balance sheet, adding that they provided more room for another easing, but only if necessary.

The index which tracks the value of the greenback, relative to its major opposing currencies, the U.S. dollar index, traded near the flat line at 94.316, just close to its decline of 94.090 overnight, lowest level since August 2016. All throughout the week, the index fell as much as 0.5 percent. The greenback was also close to being flat versus the Japanese yen at 111.92 following its low of 111.48 notched on the previous session.

The poor performance of the U.S. dollar against its counterpart yen were somehow lessened by projections from the market that the Bank of Japan will be behind other central banks in terms of tightening policies.


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