The president of the ECB has increasing confidence that the economic expansion is solid. This sounds like an upgrade in comparison to previous statements, which acknowledged the progress but did not sound so optimistic. However, inflation hasn’t reached the point of being self-sustained.

Draghi is basically keeping things balanced with the normal caution about inflation. However, his optimism comes after the upbeat German data earlier this week.

As usual, he calls on governments to take advantage of the current positive environment to make the necessary reforms. This kind of message also accompanies the text Draghi reads in every rate statement.

Here is a quote from the prepared text of the speech:

The euro area is in the midst of a solid economic expansion. GDP has risen for 18 straight quarters, with the latest data and surveys pointing to unabated growth momentum in the period ahead. From the ECB’s perspective, we have increasing confidence that the recovery is robust and that this momentum will continue going forward. There are three factors in particular that suggest this

EUR/USD has been moving up mostly thanks to the weakness of the dollar, but it is now supported by Draghi’s mostly upbeat commentary.

Support awaits at 1.1780 followed by 1.1720. Resistance is at 1.1850, a level tackled at the beginning of the week.

(Click on image to enlarge)

The president of the European Central Bank is speaking for the second time this week. His previous public appearance alongside his top peers from the Fed, BOJ, and BOE.

EUR/USD is trading around 1.18.