Currently, EUR/USD is trading at 1.1314, up 1.18% on the day, having posted a daily high at 1.1336 and low at 1.1179.
EUR/USD's fresh high came on the heels of Draghi who told an ECB symposium that “while there are still factors that are weighing on the path of inflation, at present they are mainly temporary factors that typically the central bank can look through,” noted Boris Korby and Greg Chang at Bloomberg who suggested that traders took these remarks from Draghi the potential for the start of the removal of some of the central bank’s stimulus.
EUR/GBP catches a bid on Draghi, can it now close above key Jan highs?
However, capping the bid were the additional cautionary comments from Draghi, “... a considerable degree of monetary accommodation is still needed for inflation dynamics to become durable and self-sustaining,” signaling no haste to fully dismantle the ECB’s asset-buying program, which is set to run at EU60b per month until the end of 2017.
Traders are now on watch for a speech from Fed Chair Janet Yellen in London, set for 1 p.m. ET; anything upbeat could be a booster for the greenback and some paring back ahead of the event might be expected.
Traders have taken the single currency through the 1.1300 November high and have eyes on the mid 2016 highs circa 1.1429. The two-year resistance line at 1.1467. To the downside, a move below 1.1170 should be enough to trigger losses to the bottom of the range at 1.1100, according to analysts at Commerzbank. "This remains the breakdown point to the 1.1036 55 day ma and the 1.0822 200 day ma. Where are we wrong? Above 1.1467 sees the market break higher from its long-term range."