The euro moved higher and hit session high at 1.2059 after remarks from Mario Draghi’s press conference hit the wires.
Draghi said that growth risk is broadly balanced and data point to broad based growth.
Global recovery supports trade and EU exports.
Talking about inflation which remains weak, Draghi said that underlying inflation ticked higher but remains subdued.
Draghi is confident that inflation will move towards projected levels but patience is needed.
He said that FX needs to be monitored, as volatility in FX rate is a source of uncertainty.
Regarding the interest rates, Draghi said that more action could be expected in the Autumn.
Markets were focusing Draghi’s comments about very substantial degree of stimulus is still needed and decision on stimulus could be expected in ECB’s October meeting.
The Euro pulled back from its post-Draghi’s high but stays above 1.2000 handle and holding firm tone.