Euro Momentum Stays Strong as German Inflation Provides Boost
- Pound set for best streak since 2015 as shorts capitulate
- Dollar gauge hits near nine-month low with little demand seen
Euro Bulls, Bond Bears React to Draghi Comments
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The euro extended its gains and rose to levels not seen since May 2016 as momentum buying kept the shared currency above $1.14 amid better-than-forecast German regional inflation data.
European Central Bank President Mario Draghi may have suggested that the ECB is moving toward a less inflation-sensitive stance, but investors couldn’t overlook beats in consumer prices in Saxony and other German regions. Profit-taking and fresh supply was met by model accounts buying the dip each time during the London session, traders in Europe said.