Draghi Seen Putting a Lid on Euro as Traders Test Pain Threshold
- September meeting crucial for hints on next policy steps
- UBS says Draghi ‘needs his talent’ to stop currency’s rally
BlackRock’s Lueck: Draghi Is in Difficult Situation
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The chances of verbal intervention from European Central Bank President Mario Draghi against the euro’s appreciation increased after the currency climbed to its strongest level in more than two years versus the dollar, according to foreign-exchange strategists.
The currency, which broke above the psychological $1.20 level for the first time since January 2015 on Tuesday, may see some profit taking in the near term, but banks have no doubts its trajectory remains bullish going forward, triggering an unwelcome tightening of financial conditions in the euro region.