Euro keeps going up on ECB boost

9 September 2016, 11:05
Eko Rediantoro

On Friday, the euro maintained its upward trend against other key currencies after the European Central Bank left its monetary policy intact on Thursday.

For the first time in more than two years, Mario Draghi, ECB President neither announced fresh stimulus measures nor indicated they were in the pipeline after the ECB’s decision to maintain its current bond-buying policy.

An easy policy environment is supposed to continue for now, though recent revenues in commodity prices as well as inflation expectations might convince ECB officials to scale back its stimulus program.

Fresh ECB staff forecasts, issued on Thursday, revealed inflation soaring gradually to 1.2% next year and also 1.6% in 2018.

The head of FX & money market sales at Societe Generale in Tokyo, Kyosuke Suzuki told if the ECB raises its long-term inflation projections further, then tapering will come into sight.

In New York, the euro edged up to $1.1280 vs. the greenback from $1.1261 late on Thursday, according to EBS. The common currency got to 1.0958 Swiss francs from 1.0949 Swiss francs.

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