UPDATE: ECB President Mario Draghi Reiterates Support for Euro at Press Conference > EURUSD BULLISH
The EURUSD rally has resumed following comments from European Central Bank President Mario Draghi. The pair is holding near a session high at 1.2994, from 1.2963 when President Draghi began speaking.
EURUSD 1-minute Chart: October 4, 2012

Charts Created using Marketscope – Prepared by Christopher Vecchio
Presented below without commentary are some key excerpts from the press conference:
- OMTs have helped alleviate tensions, even though ECB hasn't spent anything yet.
- Inflation rates to remain above 2% through 2012.
- ECB acts independently, EURO is irreversible.
- Economy will remain weak in 'near term'.
- ECB sees growth risks still ' on downside'.
- "Current levels of inflation should remain transitory," which are "balanced over the medium-term."
- Subdued loan dynamics reflect risk aversion.
- Fast ratification of fiscal compact would help.
- ECB didn't discuss interest rate cut today and doesn't speculate on future rate changes.
- Rescheduling Greek bonds would be monetary financing.
- Conditionality is credit enhancement for government bonds.
- Spain still facing significant challenges.
- It's up to Spain to decide if programs are enough.
- OMT wouldn't apply to countries under programs, only on full market access.
- Portugal 5-year bond issuance was 'reassuring'.
- Spain has completed almost 90% of funding program.
- Credit flows are non-existent in some euro parts.
- OMT isn't meant to induce short term issuance.
- ECB is ready and has fully effective backstop.
--- Written by Christopher Vecchio, Currency Analyst
THE TAKEAWAY: EUR European Central Bank Rate Decision > Key Rate on Hold at 0.75% as expected > EURUSD NEUTRAL
The European Central Bank has announced its key interest rate for the coming weeks, where it is on hold at 0.75%, as expected according to a Bloomberg News survey. The ECB also announced that it would be leaving its marginal lending rate unchanged at 1.50% and its deposit facility rate unchanged at 0.00%.
ECB President Mario Draghi is now scheduled to speak at 08:30 EDT / 12:30 GMT.
EURUSD 1-minute Chart: October 4, 2012

Charts Created using Marketscope – Prepared by Christopher Vecchio
Following the rate decision, the EURUSD perked up more from its pre-release gains, trading as high as 1.2967, before falling back to 1.2951 at the time this report was written. The pair remains near session highs set post-release with the session low coming in at 1.2900.
Follow the ECB Press Conference in the DailyFX Real Time News feed.
--- Written by Christopher Vecchio, Currency Analyst
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