The pair fell by 0.7% to $1.2740, after European Central Bank President Mario Draghi said during a press conference that he was committed to keeping monetary policy easy. Mr. Draghi said he would keep policy accommodative “for as long as it takes”. He pointed to downside inflation risks which stem from weaker economic activity as well as problems in the credit market. however, he didn’t offer any solution to that problem. Mr. Draghi said that while exchange rate targeting was not a policy tool target, he would take foreign exchange developments into account, just like other developments, in setting policy. Earlier, the ECB kept its benchmark interest rate, the refinancing rate, on hold at 0.75% which Mr. Draghi said was the general consensus within the governing council.
EasyForexNews Research Team