Euro rallied on Tuesday against a basket of major and minor currencies to resume gains against USD, nearing a three-month high touched earlier in the day, as strong comments by ECB President Mario Draghi Brussels, during which he expressed his confidence in the pace of inflation in the euro zone and wage growth.

Euro was up 0.1% at 07:55 GMT, trading at $ 1.1770, the opening price of $ 1.1747 and a high of $ 1.1774 and a low of $ 1.1730.

EURUSD ended yesterday’s trading lower by less than 0.1% , the second daily loss in a row, on correction and profit taking after the euro hit a three-month high of $ 1.1815 earlier in the day.

Over the past week, the euro gained 1.1%, its second weekly gain in a row as global trade concerns eased, and investors shifted to fundamentals.

EURUSD jumped on Monday to a three-month high , following ECB President Mario Draghi’s testimony to the European bloc’s parliament in Brussels, reinforcing the possibility that the bank will tighten monetary policy from early next year.

Draghi described the acceleration of inflation in the euro area as relatively strong and expected further rise in the coming months, and expressed his confidence in the labor market and the growth of wage levels.

Draghi said the bond purchase program at around 15 billion euros would end by the end of the year and pledged to keep interest rates at their low levels until summer of next year.