Euro rallies to five-month high after bullish ECB statements

Euro rose to a five-month high on Monday after statements from an ECB official saying markets should get ready for a change in monetary policy, underpinning the common currency, while the dollar skids. 

EUR/USD last traded at 1.0885, up from the opening of 1.0849, with an intraday high at 1.0909, and a low at 1.0840. 

European Central Bank member Sabine Lautenschläger said the markets should get ready for monetary policy changes, raising expectations of a tapering-off for the stimulus program, buoying the euro today.

On the other hand, the euro drew support from dollar's tumble against a basket of currencies to a five-month low after the U.S. administration pulled its healthcare law before voting in Congress due to lack of support, stoking doubts about Trump's ability to deliver on his promises to cut taxes and spend on infrastructure. 

Additionally, earlier today the IFO index for labor conditions in Germany rose to 112.3 in March from 111.1, beating expectations of 111.2, and underpinning the euro further.