Euro jumps to two-week high after Draghi's testimony

Euro widened its gains in American trade on Monday, rising for the fourth straight day against the dollar and hitting a two-week high after ECB President Mario Draghi's testimony, at which he encouraged Eurozone's governments to add to their fiscal expenditure and to reform their economies.  

EUR/USD last traded at 1.1265 as of 15:05 GMT, up from the opening of 1.1228, with an intraday high at 1.1270, the best since September 15, and a session-low at 1.1220. 

Euro rose 0.2% last Friday against the dollar, while scoring a 0.7% profit last week in what was the second weekly gain in three weeks, as concerns subsidized of a widening monetary divergence between the European Central Bank and the Federal Reserve. 

The common currency also drew support from strong data in Germany that showed a rise in business confidence to a two-year high, at 109.5 according to to the IFO survey, beating expectations of 106.3, while August's reading was revised higher to 106.3 from 106.2. 

ECB President Mario Draghi said in his testimony ahead of the European Parliament that Eurozone governments ought to  add to their fiscal expenditure and reform their economy, in a time when the bank struggle to push inflation towards its targets. 

Draghi added that politicians should do their part and reform the fiscal and structural problems in their economies to achieve self fulfillment and raise the scope of economic growth in the Eurozone.