The start of the week was favourable to euro buyers. Yesterday morning, European Central Bank President Mario Draghi announced that he would reassess the level of monetary stimulus needed in Europe later this year. He admitted that he was aware that a great deal of easing was still required for inflation to make an appearance. The EUR then lost ground against all major currencies after the announcement.
Closer to home, Chicago Federal Reserve (Fed) President Charles Evans announced later in the afternoon that current technological changes were not transitionary and that weak inflation could well be structural. However, the low rise in prices does not appear to be hindering growth in the U.S. economy at present. With a background atmosphere full of risk aversion and tensions with North Korea, the U.S. dollar, Swiss franc and Japanese yen all closed out the day in the green.
Today, Federal Reserve Chair Janet Yellen will be in the spotlight as she speaks at 12:45 in Cleveland about inflation, uncertainty and monetary policy. Stay tuned!
Alexis Masson
Range of the day : 1.2330 – 1.2450