The euro is rallying on Friday, extending the near 1% gains it saw after ECB President Mario Draghi spoke following the bank’s monetary policy announcements on Thursday.
The currency surged despite Draghi striking a strongly dovish tone and saying that the ECB’s governing council has not yet discussed different scenarios for tapering its quantitative easing programme.
“There may have been no hints at tapering in September in today’s ECB statement or in Mario Draghi’s press conference but traders certainly found reason to drive the euro higher, something the ECB President was clearly trying to avoid,” Craig Erlam, senior market analyst at FX platform Oanda said in an email on Thursday afternoon.
“I don’t think Draghi could have possibly adopted a more dovish stance at the press conference without suggesting that tapering will not happen later this year.”
The euro has rallied further on Friday morning, climbing as high as 1.1674 against the dollar, a level not seen in two years.
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