Euro Hits One-Year High After Upbeat ECB Draghi Speech

The euro hit a one-year high on Wednesday following the upbeat speech of Mario Draghi, the European Central Bank President.

Mario Draghi, who was speaking from Sintra in Portugal while attending a central banking conference along with other ECB officials which included The Bank of England’s Mark Carney and Stephen Poloz, Governor of the Bank of Canada hinted at a scale back of its 2 trillion euro stimulus program.

Versus the pound sterling the euro was at a 7 month high at $1.14.

Forex traders are eagerly waiting for speeches from the rest of the ECB policymaker officials.
The euro gained 0.7 percent in early Asian and European trade at $1.1365 and by the end of day gained another half a percent.

The dollar fell a third of a percent to 112.12 yen.

Goldeneye Cyber-Attack

News of the global cyber-attack, called Goldeneye saw technology stocks down and European shares at a two month low. Nerves on the NY Stock exchange with big tech names that included Alphabet, Apple, Facebook and Microsoft weighed on the market.

George Saravelos, analyst at Deutsche said that the key vehicle via which financial conditions in the Euro area of tightening, will likely be the EUR. The euro will be in the topside range of 1.05-1.15.

Significant Momentum Behind the Euro

Asset Management’s global market strategist at JPMorgan, David Stubb thinks that the euro has significant momentum behind it and that he would be long on it for the rest of the year.

In morning trading in Europe, the Canadian dollar gained 1 percent against the US dollar.

The weakness in the dollar, pushed the pound above $1.28 in trading.

The dollar index which measures the greenback against a basket of six major currencies fell 0.2 percent to 96.227.

Brent crude futures fell 0.2 percent at $46.55 per barrel while US crude futures dropped 0.5 percent at $44.04.

Spot gold edged up 0.4 percent at 1,251.59 per ounce, helped by the weaker dollar.

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