The euro climbed above the psychologically significant barrier of 1.20 against the dollar on Thursday afternoon as European Central Bank President Mario Draghi spoke to journalists following the bank’s latest policy announcements.
Draghi’s post decision comments — in which he said that the ECB’s governing council will begin to discuss further tapering of its quantitative easing programme in the “autumn” — sent the euro higher by more than 1%, as the chart below illustrates:
Speaking at the traditional post-decision press conference at the ECB’s headquarters in Frankfurt, Draghi said that the bank’s policymakers would look at the “calibration” of its “policy instruments” in the months to come, saying that he expected the bank to ready to announce its decision at its October meeting.
“This autumn we will decide on the calibration of our policy instruments beyond the end of the year, taking into account the expected path of inflation and the financial conditions needed for a sustained return of inflation rates towards levels that are below, but close to, 2%,” he said during his introductory remarks.
Draghi said that the bank’s governing council had held initial discussions about the future of policy at its September meeting, which he described as “very, very preliminary” and did not contain talk of “policy options.”
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