EUR/USD turns positive around 1.0880 on Draghi

The single currency appears to have recovered the smile today, with EUR/USD now regaining the positive territory in the 1.0880/85 band.

EUR/USD bid on Draghi

Spot reverted the drop to the 1.0860 area on Wednesday following today’s speech by President M.Draghi in the Netherlands.

Draghi said the central bank would ‘naturally’ exit the accommodative stance with an improvement in the economy and a rebound in inflation figures. Draghi also stressed that risk to price stability is ‘by and large gone’.

He reiterated once again that the euro is irrevocable.

Data wise in the US docket, both Export Price Index and Import Price Index have surpassed estimates in April, advancing at a monthly 0.2% and 0.5%, respectively.

EUR/USD levels to watch

At the moment, the pair is advancing 0.03% at 1.0878 and a break above 1.0916 (23.6% Fibo of the April-May rally) would target 1.0935 (high May 9) en route to 1.1024 (2017 high May 8). On the flip side, the next support aligns at 1.0861 (low May 9) seconded by 1.0850 (38.2% Fibo of the April-May rally) and finally 1.0829 (200-day sma).