- ECB President Mario Draghi
The single currency soared to the highest level in seven months on Wednesday, hitting 1.3590 against the greenback after ECB's Draghi provided additional information on economic situation in the region, while Enrico Letta's confident win boosted the currency even higher. Moreover, shared currency advanced 0.19% versus the Pound, reaching 0.8365.
As it was widely expected, the European Central Bank kept its policy unchanged, with the benchmark interest rate at a record low of 0.5%. During the press conference Draghi also assured ECB's readiness to use any tools, including the widely-discussed LTRO, to act according to money market's needs. Though unemployment is still a major concern, confidence indicators are pointing to a continued recovery in the region, meaning interest rates will remain at present level for an extended period of time. In the meantime, the central bank is trying to contain volatility in financial markets, as investors are facing high risks from a squeeze on excess liquidity after stress tests from the ECB.
Also Wednesday, current Italian Prime Minister Enrico Letta has won a confidence vote after Silvio Berlusconi joined his own party, saying he would support the coalition. The Senate voted 235 to 70 in favour of Letta's party. During the weekend Berlusconi forced five ministers to quit from his centre-right People of Freedom party.
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