Forex Round-Up: Euro depreciates on Draghi comments

on May 8, 2014
Updated: Oct 21, 2019
Listen Thursday, May 8:_

The euro has depreciated more than one percent against the greenback, sliding from a 2 ½-year high today after European Central Bank President Mario Draghi said policy makers were comfortable with taking additional action in June if needed. “The euro reversed its course after Draghi said the ECB is comfortable with acting in June,” Arne Rasmussen, head of foreign-exchange research at Danske Bank A/S in Copenhagen, told Bloomberg news. “The market appears to take that seriously. The ECB has done the talk, now it’s time it walk the walk,” she added.

As of 15:34 BST Europe’s shared currency was trading at $1.3860 down from an intraday high of $1.39929.
Sterling has been trading near $1.70, a level last reached in August 2009, for the past two days. Today, it reached an intraday high of $1.6971 and was trading at $1.6944 at press time. According to data released by the Royal Institution of Chartered Surveyors (RICS) 54 percent of its surveyors had reported an increase in house prices for April.
Both the Bank of England and the European Central Bank left their interest rates unchanged today. The BoE kept its Official Bank Rate at 0.5 percent, while the ECB held its main refinancing rate at its all-time low of 0.25 percent.


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