Euro retreats against dollar after Draghi's testimony

Euro retreats against dollar after Draghi's testimony

Euro fell against the dollar in American trade away from the highest since October 13, following an array of data from the euro zone and the US, in addition to European Central Bank President Mario Draghi's testimony ahead of the financial and monetary committee in the European Parliament. 

As of 05:30 GMT, EUR/USD shed 0.34% to 1.1750 from the opening of 1.1790, with an intraday low at 1.1722, and a high at 1.1812. 

Earlier, ECB President Mario Draghi warned from geopolitical risks and the possibility of a sharp market correction if the policies failed to meet market expectations, which was interpreted in the markets as Draghi's warning from the consequences of the failure of the US tax reform efforts. 

Draghi said business investment are still good and bolstered by increases in corporate profits, adding it's a must that inflation dynamics show indications before policy tightening. 

Finally, Draghi asserted that the monetary policy doesn't hurt bank profits, noting that net income has steadied in the last two days, while price stability is the best that can be achieved to maintain the life quality of the European citizens. 

The US CB leading index rose 1.2% in October past expectations of a 0.6% rise, compared to a 0.2% decline in September, while markets look forward to any news regarding the tax reform bill in Congress. 

Republican Senator Collins said earlier today there should be some amendments to the tax cut bill, expressing her preferment to other suggestions in the matter. 

On Thursday, the House of Representatives passed the tax reform bill by a 227-205 margin, shifting the legislative final struggle to the Senate, amid concerns the upper house could delay the reforms supported by president Donald Trump, which would cut the corporate tax rate to 20% from 35%, until 2019.



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