- Sireen Harajli, a strategist at Mizuho Bank in New York
While fundamental data from Europe is lifting the single currency just slightly higher, the currency receives a long-term impact from the ECB President, Mario Draghi. Moreover, concerns over the Fed tapering and stronger-than-expected data from the United States are not able to prevent Euro's rally. The shared currency advanced for a sixth day in a row against the U.S. Dollar on Tuesday, posting the longest streak in almost a year and hit the strongest level in almost six weeks. At the same time, the most traded currency pair has gained more than 1% since the day before the ECB shrugged off the introduction of negative interest rates during the last week's meeting.
During the conference organised by the Banca d'Italia in memory of Curzio Giannini Mario Draghi stressed out the necessity of completion of the banking union and said individual region's governments have to deliver on economic reforms. He also pointed out the central bank had earned time for action by assuring price stability during the last 15 years.
At the same time, Draghi claimed that new tools under the Capital Requirements Directive IV and the significant role of the Single Supervisory Mechanism will definitely help to provide the intrusiveness and will increase the possibility another financial crisis will be prevented.
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