The ECB President Mario Draghi said that he was reasonably confident that factors weighing on inflation is temporary and that deflation risk is now priced out of inflation expectations. Euro surged against the dollar from 1.1190 to 1.1265. (+75 pips). The US dollar fell in European trading thus adding to the euro's gain.
In his speech in the ECB's annual policy forum in Sintra in Portugal, Draghi noted a recovery in the euro zone economy and that deflationary pressure has been replaced with a potential rise to inflation, but he also added that stimulus will still be needed.