Euro Jumps to Two-week Highs Versus Dollar Following Draghi’s Speech
The Euro experienced a sharp rise versus its American counterpart on Tuesday after European Central Bank President Mario Draghi claimed that growth is above trend and well distributed across the euro area.
The currency pair EURUSD jumped steeply more than 0.6 percent on Tuesday to reach a high of 1.12500 – the highest level since June 14th as the Euro was pushed higher by Draghi’s speech.
Speaking at the ECB’s central banking forum in Portugal, the ECB President argued that the central bank’s stimulus policies with negative interest rates had helped create jobs and reduce inequality in the euro zone, especially in Southern European countries where youth unemployment rates reach up to 45%.
Draghi also showed optimism over the euro zone’s economy, saying that there are clear signs of a “strengthening and broadening” recovery and those deflationary factors, which were weighing on the path of inflation, will soon be replaced by inflationary ones.
Later in the day, Federal Reserve Chair Janet Yellen is scheduled to make public appearance at the British Academy’s 2017 President’s Lecture in London. Traders will be looking for clues on changes in policy of the U.S. central bank given Yellen’s opinion on the U.S. economy after a recent batch of weak economic reports.
Besides Fed Chair Yellen, a pair of Fed policymakers are due to make public appearances on Tuesday which are Philadelphia Fed President Patrick Harker and Minneapolis Fed Chief Neel Kashkari.
Buy Stop at 1.12500, Take profit at 1.12900, Stop loss at 1.12300