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The Euro jumped over 1.1800 against the dollar after ECB chief Draghi delivered a hawkish testimony in Brussels. He said domestic price pressures are rising and that he sees a relatively vigorous pickup in underlying inflation.

ECB mario

While it is true much the same as he said at the last ECB press conference, the US dollar has been under pressure for a while and stops were pressured on the headlines. There are also sizeable short positions out there with nerves on Italy, which has allowed $EURUSD a steady rise since the lows of last month.

Headlines via Reuters

  • Domestic price pressures are rising
  • See relatively vigorous pickup in underlying inflation
  • Data vindicate ECB's view on medium-term inflation
  • See ongoing, broad-based expansion
  • Labor markets are tightening, shortages in some areas
  • Pick-up in wage growth will continue  
  • ECB guidance on asset purchases and interest rates same as ECB meeting

From The TradersCommunity News Desk

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