Mario Draghi is not a drag on the euro today. He leans towards the glass half full by saying that downside risks are diminishing. Speaking against a backdrop of thin volume, markets are moving. At least not yet.
Draghi says that tail risks have receded and that the upswing is increasingly solid. While the head of the Frankfurt-based institution chooses his words cautiously, he is focused on the brighter side of the things.
EUR/USD is trading around 1.1186, up from support at around 1.1160 seen earlier in the day. However, the pair is not reacting to the speech. It traded at these levels before the publication. Resistance awaits at 1.1265, the cycle high, which is far off. Support awaits at 1.1160, followed by 1.1120.
Update: EUR/USD is now sliding back down to 1.1178. The movements are quite shallow. It is a bank holiday in both the US and the UK.
The President of the European Central Bank is testifying in front of the European Parliament around 10 days ahead of the critical June decision. Last week, Draghi talked in Madrid and leaned more towards worries about inflation, keeping the pressure on the euro.
Here is how it looks on the one-hour EUR/USD chart:
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