Euro hits two-year high after ECB meeting

Euro jumped to the highest since August 24, 2015, following earlier data from the euro zone and the US, the world's largest economy, including the European Central Bank's meeting, at which the ECB held interest rates unchanged at their record lows. 

As of 03:49 GMT, EUR/USD rose 1.05% to 1.1636 from the opening of 1.1515, with an intraday low at 1.1479, and the highest in 33 months at 1.1658. 

Earlier data showed the euro zone's trade surplus widening more than expected in May, before ECB president Mario Draghi asserted in a press conference the strength of the region's economic recovery, pointing to growth risks as roughly balanced, while adding low energy prices limit inflation. 

Draghi said the current monetary policy supports inflation, while structural reforms are needed to underpin recovery, adding that ECB has the flexibility to intervene further if conditions worsened, noting the ECB hasn't reached its goals yet, asserting the main mandate of the bank is to stabilize prices not growth or employment. 

Earlier US data showed a bigger than expected drop in weekly unemployment claims, while the Philly manufacturing index slid to 19.5 in July from 27.6, missing expectations of 23.4. 

The policy divergence between the Federal Reserve and the ECB sent the euro surging to a two-year high against the dollar, as markets price in a possible tightening of policy later, while the Fed might delay rate hikes to next year as US inflation softens.