Euro stabilizes after dipping on Draghi’s comments
On Friday, the major European currency stabilized after a wavy overnight trading session, reacting to the ECB’s gathering. Financial markets were caught between the ECB’s firm stance for the current moment and traders’ expectations as for further stimulus.
The euro appeared on track for its minor surge against the greenback, while the dollar index headed for a moderate loss. The index stood still during early Asia session, trading at 94.613, demonstrating this week’s 0.1% sag.
The ECB held its monetary policy steady enough and the major European currency surged on expectations that the major bank wouldn’t get down to extra stimulus measures soon. However, the euro dipped after a while, when Draghi, the ECB’s governor told about a probability of making use of all his tools if required.
The euro was waving against its major American counterpart at $1.1291 having tumbled to $1.1270 overnight from $1.1399, a week high.
The given reversal caught many market participants off guard, because the key takeaway from today’s gathering is that the major European financial institution doesn’t have any immediate stimulus plans.