Reuters: US Dollar Report: FOREX-Euro rises as Draghi more upbeat on economy

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

FOREX-Euro rises as Draghi more upbeat on economy May 3rd 2012, 13:51 Tweet Share this Email Print Thu May 3, 2012 9:51am EDT * ECB's Draghi says inflation to stay above 2 pct in 2012 * Draghi says outlook subject to downside risks By Gertrude Chavez-Dreyfuss NEW YORK, May 3 (Reuters) - The euro rallied from two-week lows against the U.S. dollar on Thursday after European Central Bank chief Mario Draghi gave a more upbeat assessment of the euro zone economy than expected, reducing expectations of further monetary easing. Draghi, in comments after the ECB kept rates unchanged at 1 percent, said the euro zone economy was likely to recover this year, although the outlook remained vulnerable to downside risks. He added that inflation was likely to remain above 2 percent this year.. "Overall, Draghi was less dovish than expected. We were waiting for easing signals and we're not getting any of that and that has kept a bid in the euro," said Greg Moore, currency strategist at TD Securities in Toronto. The euro hit session highs at $1.3179 after falling to two-week lows at $1.3097. It was last at $1.3167, up 0.1 percent. Traders said investors holding short euro positions got squeezed when Draghi disappointed their rate cut expectations by not signaling further easing or outlining measures to boost what many believe was still a struggling euro zone economy. The euro also rose 0.6 percent against the yen to 105.98 yen . The dollar, meanwhile, rose 0.4 percent against the yen to 80.49 yen as a fall in weekly U.S. jobless claims eased concerns about the labor market recovery. Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions