ECB council member Yves Mersch claimed today that the European Central Bank will likely make an “exit” statement at the next meeting on March 3 announcing the end of monetary stimulus for the region’s economy. In addition, the official said that the ECB can raise rates even before the peripheral euro area nations have finished conducting austerity measures. According to Mersch, excessively low rates can distort European economy.

Such hawkish comments made the single currency go up compensating the previous losses made as investors’ risk aversion strengthened due to the escalating situation in the Middle East, the earthquake in New Zealand and Moody's downgrade of Japan's debt outlook.

The pair EUR/USD formed a spike returning above 1.3600.

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