Unexpected Optimism from Mario Draghi Boosts Euro

Today's speech by European Central Bank President Mario Draghi was received by the market rather positively, and the break technical resistance in the pair EURUSD 1.1200-1.1210 caused the elimination of a number of stop orders of major players, which led to the appreciation of the European currency.

So what interesting did Mario Draghi say?

Despite his restrained tone yesterday, today, the ECB president said that the ECB policy should be persistent, but it is necessary to reasonably approach the adjustment of parameters in response to improving economic conditions.

Draghi also pointed out the fact that the ECB policy is working, and the effects on inflation will be gradually be reflected.

The ECB president also noted that the pace of growth in the euro area exceeded the trend level, and the growth itself is well distributed.

All this resulted in stronger demand for risky assets, particularly the euro, which helped it return to monthly highs.

But let's not rush and write off today's speech by Fed Chairman Janet Yellen, scheduled for the second half of the North American session.

The pressure was on the US dollar today as data showed slower growth of US house prices in April this year.

According to S & P / Case-Shiller, the national housing price index in April this year rose by 5.5% compared to the same period of the previous year, after increasing by 5.6% in March.

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Economists expected that in April the index for 20 mega-cities would grow by 6% compared to same period last year.

The material has been provided by InstaForex Company - www.instaforex.com