Euro sees gains on ECB president’s remarks

The euro was stronger in relation to both the US dollar and the pound after comments from the European Central Bank’s president called the risk of Eurozone inflation significant, leading to speculation that the ECB will hold interest rates steady when it meets next later this week.

The decline of the dollar was moderated by new data from the Institute for Supply Management that indicated that the non-manufacturing sector in the US returned to expansion in April.

In late-morning trade in New York, the euro was worth $1.5489, while it was also higher versus the yen at ¥162.8590.

The pound weakened versus both the euro and the US dollar, with the British currency trading at 78.68p to the euro and standing at $1.9685 to the pound at just before 11:30 a.m. in New York.

The Canadian dollar was up versus the US dollar on higher prices for oil and gold and on higher exports of commodities, with the loonie trading at C$1.0128 to the greenback.

Story link: Euro sees gains on ECB president’s remarks