The euro recovered against the dollar in London

The euro recovered against the dollar on Thursday after statements by President of the European Central Bank (ECB), Mario Draghi, who believes that the single currency does not need yet support measures in the markets.

At 1700 GMT the single European currency was worth $ 1.2431, compared with $ 1.2308 on Wednesday at 22H00 GMT.

The euro fell on Thursday at 07h20 GMT to $ 1.2296, its lowest level since August 20, 2012.

After the record low, the euro “recovered because Draghi removed all doubt: no further action (support) on Thursday,” said David Rodriguez, analyst at DailyFX.

For some observers, the announcement of further monetary support can now be ruled out until March.

“Although the outlook for the economy Draghi are delinquent, the market expected more from this meeting” and the absence of new measures pushed some brokers to give up their positions down on the euro, and thus cause a rebound in the single currency explained Alejandro Zambrano, an analyst at FXCM.

“Draghi seems to rely heavily” on existing support measures, which in his opinion will be enough, “unlike what the market thinks,” said Zambrano.

In the whole of the eurozone, growth has slowed in November to its lowest level in a year and a half, which requires a much more aggressive policy of the ECB incentives, analysts said.

Furthermore, the data of inflation in the euro zone, published last week, show a slowdown in the rise in prices to their lowest level since October 2009 (+ 0.3%).

If the deteriorating economic conditions take the ECB to act as an injection of new liquidity in the financial system in the euro area, the side effect would dilute the value of the euro.

The dollar remains strong optimism party before showing the Federal Reserve, said Wednesday in a report that US economic activity continued to expand in October and November.

This report on the situation, made with information gathered on the ground, stretching over six weeks before the November 24, arrives two weeks before the next meeting of the Monetary Policy Committee of the Fed (FOMC) provided day 16 and 17 December.

Investors now await the publication, on Friday, the monthly employment report in the US and if positive, will underpin the hope that the monetary authorities will soon raise interest rates in the United States, currently near zero, to encourage credit.

A change in monetary policy would increase the performance of the dollar making it more attractive for investors.

The dollar against the yen rises regularly, and Thursday for the first time crossed the barrier of 120 yen to the dollar for the first time since July 2007.