Euro Muted Amid ECB President Draghi's Testimony
06:55, 26th September 2016
(RTTNews) - Monday, the euro showed muted reaction to Parliamentary hearing by the European Central Bank President Mario Draghi, pointing that euro area economy was resilient to global and political uncertainty, notably following the outcome of UK referendum.
Speaking to the European Parliament, Draghi said that the euro area economy has been resilient to the Brexit vote till now, but the baseline scenario remains subject to downside risks.
The recovery in the euro area is expected to continue at a moderate and steady pace, although at slightly less momentum than envisaged in June, he told.
Irrespective of the type of relationship between the European Union and the United Kingdom, the integrity of the single market should be a key priority, he added.
Traders remained cautious ahead of tonight's first U.S. presidential debate, when Hillary Clinton and Donald Trump will meet at Hostra University in Hempstead, New York.
The debate, which is scheduled to begin at 9 pm ET, will be divided into six segments of about 15 minutes each.
The euro was higher against most major counterparts in the European session.
The euro that spiked up to an 11-day high of 1.1270 against the greenback in European deals held steady thereafter. At last week's close, the pair was valued at 1.1222.
The euro pared some of its early gains against the pound with the pair trading at 0.8684, down from its recent nearly 6-week high of 0.8716. The euro-pound pair was valued at 0.8653 when it finished Friday's trading.
Survey by the Confederation of British Industry and PricewaterhouseCoopers showed that sentiment in the British financial services sector weakened for the third straight time in the three months to September.
A balance of -13 percent said they were less optimistic about their overall business situation compared to -13 percent in the prior quarter. This was the third consecutive fall, the longest period of decline in sentiment since 2009.
The euro eased back to 1.0891 against the Swiss franc, from a high of 1.0911 hit at 8:30 am ET. The euro-franc pair ended last week's deals at 1.0885.
The euro held steady around 113.09 against the yen, after easing from an early high of 113.52. On the downside, the euro may find support around the 111.5 mark.
Looking ahead, at 11:45 am ET, Federal Reserve Governor Daniel Tarullo will deliver a speech titled "Next Steps in the Evolution of Stress Testing" at the Yale School of Management Leaders Forum, in New Haven.
At 12:00 pm ET, Austrian National Bank Governor and ECB Governing Council member Ewald Nowotny is expected to speak on the future of banks, in Vienna.
At 1:30 pm ET, Federal Reserve Bank of Dallas President Robert Kaplan will participate in moderated Q&A before the Independent Bankers Association of Texas Annual Convention in Dan Antonio.
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