Euro Maintain Gains After ECB Meeting

US shares were mixed with the S&P ending slightly lower as investors braced for Irma and fretted that Pyongyang could

Azad Zagana, senior economist at Schroders, said investors should expect greater clarity on the currency at the next meeting, and noted that Mr Draghi revised upwards his growth forecast for 2017, to 2.2 per cent, the highest for a decade.

More important, its inflation projections were kept unchanged at 1.5% this year but was lowered to 1.2% (from 1.3%) next year and 1.5% (from 1.6%) in 2019, not least, because of the euro currency's strength.

ALL EYES ON DRAGHI: Markets are waiting to see whether European Central Bank President Mario Draghi will try to talk the euro down as he discusses the future of stimulus for the 19-country eurozone economy.

-Asset buying to continue at a 60 billion euros a month through year-end or beyond.

These figures confirmed that the Euro-Area's economy developed at its fasted speed since the debt crisis some five years ago, providing a bright outlook and also demonstrating that the European economy is remaining competitive with the United States, which recorded growth of 2.2% year-on-year in Q2. The higher the euro rises, the more likely it is that inflation, which has been stubbornly low for years, will remain subdued.

"Recent economic data have been stronger than expected, supporting the bank's view that growth in Canada is becoming more broadly-based and self-sustaining", the bank said.

The euro's surge this year - by more than 14 percent against the dollar and nearly 6 percent on a trade-weighted basis - was reflected in a downgrade to the ECB's inflation outlook even as Draghi said economic growth remains solid. He's doing everything he can to spur inflation and the euro strength is taking that (any benefit) away from him.

"We think we are going to be ready for much of what we have to decide in October. if we are not then we postpone".

If Europe continues to see faster levels of growth at a time of political calm, whilst uncertainty remains in the USA and United Kingdom political climates, the Euro may continue to be seen as a relative safe haven.

The slowness of consumer price growth may give Mr Draghi cause to wait as long as possible. Second-quarter gross domestic product data released earlier in the morning showed 2.5% growth on-year, below the 4% growth estimated in a preliminary reading. House prices advanced 2.6 percent year-on-year in three months to August, faster than the 2.1 percent increase seen in three months to July.

The ECB left its benchmark short-term interest rate at zero, and its deposit rate at negative 0.4 percent, both record lows.

Overall, markets are increasingly confident that the European Central Bank will begin withdrawing its quantitative easing (QE) package soon, but the undervalued GBP EUR exchange rate has held above its worst levels.

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