The euro hit a high of $1.2789, according to Reuters data, and last traded at $1.2776, up 0.6 percent on the day. The euro was trading at around $1.2740 before Draghi's comments and the release of dour US economic data.

"He's saying the loan facilities are working and he's really pressing policymakers to move toward a fiscal compact. Markets are taking that as a hopeful sign. On rates, he's taking a wait-and-see attitude," said Boris Schlossberg, head of research at GFT Forex in Jersey City, New Jersey.

"He acknowledges the downside economic risks but also said survey data has shown some signs of stabilization. So that is offering a ray of sunshine, a hope that maybe they can skirt a recession."