The euro climbed to $1.1925, its highest level since January 2015, after the European Central Bank (ECB) president's speech in Jackson Hole, Wyoming. European Central Bank President Mario Draghi said last week the global recovery is improving. "The global recovery is firming up," according to Mario Draghi. He noted that in Europe and Japan, "the consolidation of the recovery is at an earlier stage" versus that of the U.S.
Draghi also added significant monetary accommodation is still needed and that inflation is not yet converging to the central bank's target. The ECB president also said that the central problem of "how to raise potential output growth" faced increasing challenges.
"Without stronger potential growth, the cyclical recovery we are now seeing globally will ultimately converge downwards to those slower growth rates," Draghi said. "Slower growth will in turn make it harder to work through the debt and demographic challenges facing many advanced economies."