Breaking News: EUR/USD surges above 1.1800 as Draghi goes hawkish

European Central Bank President Mario Draghi said that domestic price pressures are rising in a testimony before a committee of the European Parliament in Brussels. He said there are shortages in some sectors and that the pick up in wages is projected to continue. He sees a relatively vigorous pick in underlying inflation. 

Draghi also said that the ECB projections foresee inflation excluding food and energy reaching 1.8% in 2020.

More: ECB's Draghi: Interest rates to remain at present levels at least through summer of 2019

The EUR/USD broke above 1.1800, surpassing the highs seen on Thursday and trading at the highest levels since mid-July. Further resistance is seen at 1.1825 and 1.11850, which was the mid-June high. Support is at 1.1750 and 1.1725.

Here is how the move looks on the chart. Click here or on the image to see a live chart:

In his latest press conference, Draghi was not as dovish as he usually is. However, the ECB left its economic projections unchanged back then. His comment about core inflation rising to 1.8% is especially hawkish as the most recent read is only 1%.