Euro rises from near one-year low after Schaeuble comments

The euro rose from near one-year low versus the U.S. dollar on Wednesday after German Finance Minister said ECB President comments about stimulus were “over-interpreted by markets.

Mario Draghi’s comments on possibly easing austerity measures have been “over-interpreted,” German Finance Minister Wolfgang Schaeuble said in an interview published on Tuesday.  

Draghi has revealed that the ban was ready to use any available instrument if inflation outlook worsened.

Eyes will focus on Germany inflation data tomorrow and euro area’s CPI estimate on Friday.

The EURUSD is meanwhile trading around 1.3177 after touching a bottom of 1.3150 and a high of 1.3187.

The dollar index, which tracks the green currency’s movements versus a basket of major currencies, slipped from a peak of 82.75 to hover around 82.54.

The U.S. will released tomorrow second quarter annualized GDP (second reading), initial jobless claims for last week and pending home sales for July.  

The GBPUSD rebounded as it found support at 1.6535 to hit a peak of 1.6604, while it is currently trading around 1.6594.

The sterling has been pushed down by worries regarding U.K. slow wage growth, below-target inflation and simmering external risks to recovery.

The USDJPY dropped today after it closed yesterday’s session on a slight gain to trade around 103.85.