-Mario Draghi, ECB President
The single currency erased its gains that were made on the back of stronger than expected German Ifo business climate as Mario Draghi reiterated his pledge to pull the trigger in case the single currency continue climbing higher. The most traded currency pair pulled back from session highs and hit 1.3824, moving lower 20 pips. The pair is likely to find a support at 1.3785, April 22 low.
The European Central Bank pledged to launch broad-based purchases of assets in case the outlook of future inflationary pressure weakens too much. The central bank's 24-member governing council is unanimous in the decision to use both unconventional and conventional tools of monetary policy to deal effectively with rising risk of a prolonged period of low inflation. Draghi's comments on Thursday mostly echo with the monthly policy statement released on April 3. Inflation hit 0.5% in March, the lowest in more than four years. After that Draghi signalled willingness to use the U.S.-style quantitative easing. Nevertheless, the president can postpone his decision in case inflation report on April 30 will show a rebound in prices, as the recovery takes hold.
Also during the speech Draghi claimed the ECB should publish a written account of its debates. He also mentioned minutes should omit names in order to protect the independence of the central bank's members.
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