Euro Jumps Above $1.06 After Draghi Signals No Further Rate Cuts
The euro [s:eurusd] jumped to an almost one-week high against the dollar on Thursday, after signals from the European Central Bank President Mario Draghi that interest rates are unlikely to be cut further. The shared currency bought as much as $1.0617, its highest level since last Friday. The euro traded at $1.0542 late Wednesday in New York. Draghi noted that the ECB no longer feels it needs to convey a "sense of urgency" in taking further action to ease policy. He also said the policy makers had not discussed another round of cheap loans to banks in the form of targeted longer-term refinancing operations, or TLTROs. "Deflation is no longer the concern for the ECB -- prices are not rising fast enough to warrant tapering or higher rates, but the imminent risk of deflation has passed. That's something of a watershed moment -- the end of the beginning in terms of unconventional monetary policy tools perhaps," said Neil Wilson, senior market analyst at ETX Capital, in a note.
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