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    Euro pressured lower against the dollar after Draghi remarks

    “The ECB is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing”, its president of the European Central Bank, Mario Draghi said on Friday, which came as a result of the euro to fall aggressively against the dollar.

    Mario Draghi gave the clearest signal yet that the bank may unveil fresh stimulus measures at its December meeting. The comments came during a conference in Frankfurt and underlined the diverging monetary policy outlooks between the Federal Reserve and the ECB.
    The euro was down 0.82% against the dollar, at 1.0645 in late trade, not far from Wednesday’s seven-month trough of 1.0616. EUR/USD ended the week down 0.5%.

    The single currency was also lower against the yen and the pound, with EUR/JPY at 130.76 late Friday, off 0.85% for the day.

    Meanwhile the euro was moved smoothly against the British pound, with EUR/GBP slid 0.13% to 0.7010.

    Elsewhere, the dollar was almost unchanged against the yen late Friday, with USD/JPY at 122.82, but ended the week up 0.43%.

    Demand for the dollar continued to be underpinned by expectations that he Federal Reserve is on track to raise interest rates next month, as a result the greenback gained ground against the Swiss franc and the Bristish pound. USD/CHF advanced 0.57% to 1.0185 and GBP/USD was down 0.68% to 1.5186.

    The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.58% to 99.65 on Friday, re-approaching Wednesday’s peaks of 99.96, the strongest since April 14. The index ended the week up 0.52%.

    This week major market events are, among others, the euro zone is to release survey data on private sector activity on Monday, while both the U.S. and the U.K. are to publish revised data on third quarter growth later in the week.

    Finally, the U.S. markets will be closed Thursday for the Thanksgiving holiday and Friday will be a half day.

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