The single European currency amazes with its impressive resilience. Neither political tension, nor Brexit or other ordeals are able to pull the euro away from its highs. Even against the backdrop of all these issues, the euro manages to look attractive to investors. The euro/US dollar pair has recently reached a two-year high.
The rally was triggered by the ECB President’s speech after the Governing Council meeting on the monetary policy. President of the central bank Mario Draghi reported that the officials decided to keep the key interest rates at the current level and leave the existing quantitative easing program unchanged. In particular, market participants expected to hear not about changes regarding the key interest rates but about more exact terms of Q3 winding down. However, Draghi left this question unanswered stressing that the European economy still needs substantial monetary support.
Despite the dovish - according to most experts - statements of the ECB President, the currency market saw Mario Draghi’s comments as a signal for monetary policy tightening in the future. The euro had the most noticeable reaction to the final decisions of the ECB Governing Council. The euro has reached the highest level since January 2015 against the US dollar and, it seems that it is not going to ease its growth.
