Currency News: EUR Got Above $1.19 After ECB Chief Speech
Currency News:
Recently in this edition of currency news, on August 25th, 2017 the Euro achieved its highest position against the dollar since January 2015. The Euro got to this peak after the European Central Bank chief Mario Draghi speech at Jackson Hole, Wyoming. The euro climbed almost 1.2% against the US dollar to $1.1941; then it traded just 1% higher due to corrections.
Mr Draghi was focused on symposium theme — “Fostering a Dynamic Global Recovery”. Inflation stayed low as he didn’t mention anything about the strength of the euro.
The single currency had already been up against the dollar that day, while Federal Reserve chief Janet Yellen didn’t give any comments on monetary policy during her speech. Mr. Draghi noted that global recovery is getting stronger and the processes are visible in the US for several years. But also specify that in Europe and some Asian countries the renewal just began.
Brad Bechtel, managing director of FX at Jefferies: “I think the market was just looking for anything regarding monetary policy, and then Yellen didn’t even touch the subject,”. The Euro was strengthening the US dollar and truly responsible for much of Friday’s drop in the greenback indexes.
The strengthening Euro also has pushed the French CAC 40 and German Dax up more than 1 per cent in dollar terms over the past month, compared to a 1.3 per cent decline by the US S&P 500. For the year, stocks in the Euro Stoxx 600 index are up 16 per cent in dollar terms.
