Capello's men were grouped with co-hosts Ukraine, France and Sweden in Friday's draw in Kiev. Meanwhile the Republic of Ireland were handed what on paper looks a much tougher test against Spain, Italy and Croatia.
Afterwards Capello told BBC Sport: "Now we are here all the teams are very good. They have arrived in this position in the tournament because they are very good.
"Of the other groups, I think Group B is very difficult because Portugal, Germany and Holland are very tough.
"Probably the best group was Group A but we are happy with Group D. It is a tough group but better than Group B."
Capello added that England will not move their base from Krakow, even though all of their group games will be played in Ukraine.
He said: "Absolutely not because we have found a really good place.
"I am happy with the facilities and we will stay in the same place in Krakow."
Former England captain Paul Ince was pleased with the draw. Ince told BBC Radio Five Live: "Overall we have to be delighted. It is a fantastic group for us.
"When you look at the groups we have had, in qualification and in the World Cup, the gods have been smiling down on us and they have certainly done it again tonight [Friday].
"If we can't get ourselves through that group we have only got ourselves to blame.
"On paper we should win all those games but the French are always tough, Ukraine at home will have loads of fans behind them - the atmosphere will be crazy.
"On paper it looks easy but I am sure Capello will not take anything for granted."
Capello admits making a good start against France will be imperative, adding: "Most difficult will be the first game against France. The first game is always difficult to play because of the pressure. A result will be very important."