Euro relinquishes gains versus dollar after Draghi's testimony

Euro relinquished most of the gains it had against the dollar in American trade following earlier data from the euro zone and the US, the world's largest economy, and after European Central Bank President Mario Draghi's testimony before the European Parliament. 

As of 04:11 GMT, EUR/USD rose 0.01% to 1.2296, with a session-high at 1.2355, and a low at 1.2278. 

European Central Bank President Mario Draghi testified on monetary policy and the inflation outlook before the European Parliament Economic and Monetary Affairs Committee, in Brussels, where he noted that while growth bested expectations, inflation still needs to present more convincing evidence of upward sustainability before a change in monetary policy. 

Draghi expected inflation to resume its march higher, asserting the persistent relationship between growth and inflation even when faced with transient weakness, and finally noting that wages have grown in the euro zone, while inflation's path is dependent on the ECB's stimulus policies. 

Earlier US data showed new home sales fell 7.8% in January to an annualized 593 thousand units, compared to a 7.6% drop in December to 643 thousand, revised from a 9.3% decline, while analysts expected a 3.5% rise to 647 thousand units. 

Tomorrow, Federal Reserve Chair Jerome Powell is due to testify on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC.