Draghi speech: Improvement in economy is one reason behind FX changes


Mario Draghi, President of the ECB, is responding to questions from the press, providing the key quotes, via Reuters, found below.

Commitment to inflation target remains firmer than ever.

We have observed since December that expected path of short-term interest rates has moved upward.

Improvement in economy is one reason behind FX changes.

Second cause of FX rate change is heightened market sensitivity to perceived changes in ECB communications.

Third reason is use of language in discussing FX developments doesn't reflect agreed terms of reference.

Key notes

EUR/GBP spikes to fresh session tops as the ECB presser gets underway.

The EUR/GBP cross extended its modest rebound from 7-month lows and spiked to fresh session tops, around 0.8725 region as the ECB presser got underway.

EUR/USD gathers traction on Draghi, 1.25 just around the corner.

The shared currency quickly rebounded from daily lows vs. the buck on Thursday, now pushing EUR/USD to fresh 2018 tops near 1.2500 the figure.

About Mario Draghi

The European Central Bank's president Mario Draghi was born in 1947 in Rome, Italy. Graduated of the Massachusetts Institute of Technology (MIT), Draghi became the president of the European Central Bank in 2011. As part of his job in the Governing Council he gives press conferences in the back of how the ECB observes the current European economy. President's comments may determine positive or negative the Euro's trend in the short-term. Usually, if he shows a hawkish outlook, that is seen as positive (or bullish) for the EUR, while a dovish is seen as negative (or bearish).

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