FxWirePro: Euro slips on Draghi comments

European Central Bank (ECB) President Mario Draghi, speaking at a press conference in Frankfurt expressed his confidence in the current monetary policy stance and laid out three points,

• Mr. Draghi said that the current monetary policy is working and it has been a key factor behind the recent years’ resilience in the Euro area economies.
• “Recovery is progressing and may now be gaining momentum”, however, he added that the risks are still tilted to the downside.
• He pointed out that despite these improvements; inflation dynamics remain dependent on the current monetary policy stance of the ECB which includes interest rates, asset purchases, and forward guidance.

The euro dropped sharply from 1.068 to as low as 1.063 against the dollar, however, it has somewhat recovered, trading at 1.066against the dollar.

We don’t suspect the ECB comments to make a great deal of difference in the direction of the euro as the focus is not on the monetary policies but election uncertainties in France.