Euro Rises as Markets are Focused on Mario Draghi’s Speech

Forex News

Euro starts the week with growth. The euro/dollar pair increased by 0.38% today to the level of 1.2342. Today ECB President Mario Draghi is addressing the Committee on Economic and Monetary Affairs of the European Parliament. Dynamics of the pair can also be set by the Eurozone inflation data, which will be published this week. The European single currency increased by 2.8% since the beginning of the year against the background of the weakness of the US dollar.

On Thursday, the ECB published the minutes of its January meeting. The politicians indicated that they could revise the monetary policy of the Bank earlier this year, but nevertheless, inflation indicators will further influence the state of the Bank's policy. Nevertheless, since inflation remains below the ECB's target of 2%, little is said about raising interest rates.

The focus this week is Federal Reserve Chairman Jerome Powell's first congressional testimony on monetary policy and the economy. Powell is expected to focus on the strong US economy and the Fed trimming its balance sheet, and steer away from a discussion of accelerating rate policy in order to head off higher inflation.