Investing.com - The euro rose to the day’s highs on Thursday after European Central Bank President Mario Draghi struck a more upbeat tone on the outlook for the recovery in the euro zone, while reiterating that the present monetary policy stance remains appropriate.
EUR/USD was up 0.52% to 1.0596 by 09.25 ET from around 1.0565 earlier.
Draghi said the ECB no longer feels it needs to convey a “sense of urgency” over its willingness to ease monetary policy further and added that there had been no discussion at today’s meeting about another round of targeted longer-term refinancing operations, known as TLTROs.
The comments came at the ECB’s post-policy meeting press conference in Frankfurt.
He also said that deflation risks have “largely disappeared”, adding that ‘market-based inflation expectations have increased noticeably.”
Geopolitical events, including Brexit and the upcoming French presidential elections pose a “downside risk” Draghi noted, but added that it is difficult to gauge how they’ll affect the economy.
Drahi also said that underlying inflation remains sluggish, pointing out that rising energy and food prices had contributed the bulk of the recent uptick in inflation.
The ECB kept interest rates unchanged at the outcome of its meeting earlier and reiterated they can be cut again in the future if necessary.
In its statement, the bank reiterated that it expects rates to remain "at present or lower levels for an extended period of time, and well past the horizon" of its bond-buying program, which is scheduled to run through at least December.
The ECB also repeated that it stands ready to extend the size or the duration of its asset purchase program if the economic outlook worsens.
The euro also gained ground against sterling and the yen, with EUR/GBP last up 0.31% to 0.8691 and EUR/JPY rising 0.89% to 121.64.