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Forex: EUR/USD trims gains after Draghi reports


Rey Nuevo

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FXstreet.com (Córdoba) - The euro trimmed most its Friday's gains during the American afternoon and briefly fell below 1.2300 as investors assess the consequences of different policy options the European Central Bank may take to stem the debt crisis.

 

EUR/USD rose to a high of 1.2389 after Bloomberg reported European Central Bank President Mario Draghi would favor giving the ESM a banking license and would meet with German's Bundesbank President Weidmann, but gave up more than 100 pips before the 1.2280 area contained the slide.

 

At time of writing, EUR/USD is trading at the 1.2315 zone, still up 0.3% on the day. EUR/USD is about to post its first weekly gain in a month, up 1.6%, as several policymakers pledged to support the euro whatever it takes, sending strong signals to financial markets ahead of ECB policy decision next week.

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