ECB president Mario Draghi is holding his monthly press conference, and the euro is up more than 100 pips against the dollar since it started.
Right now, EURUSD is trading around 1.3590. It was as low as 1.3483 prior to the beginning of the press conference, and rose as high as 1.3600.
The ECB elected to leave rates unchanged today, as was widely expected by market economists.
In his opening remarks, Draghi said the ECB is ready to take further action to ease if needed — the implication that no new policy changes were being announced today.
There was some discussion in the press and among market participants before the meeting that the Bank could take a number of measures to ease liquidity conditions, but it looks like it will pass on doing so for now.
Moreover, Draghi shrugged off the latest inflation data, which revealed an unexpected decline in December.
Draghi said low inflation over a prolonged period was a risk that could not be ignored, but he attributed the disinflation trend to low food and energy prices, and said he does not see deflation, citing stable inflation expectations. These comments gave the euro an additional lift.
The chart below shows the euro-dollar exchange rate.
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