The euro was lower against its most major counterparts in the New York session on Thursday, after the European Central Bank President Mario Draghi reiterated that the bloc still requires ample degree of monetary accommodation to underpin inflation, citing uncertainties pertaining to the global trade environment.
In his press conference following the monetary policy decision, the ECB chief noted that the risks surrounding the euro area growth outlook remains broadly balanced, even as uncertainties emanating from the threat of protectionism prevails.
Draghi backed his pledge to keep interest rates at their present levels at least through the summer of 2019.
The Governing Council is of the view that an ample degree of monetary accommodation is still necessary for the continued sustained convergence of inflation to levels that are below, but close to, 2 percent over the medium term, he added.
The European Central Bank has left its key rates unchanged, keeping its main refi rate at a record low of zero percent and the deposit rate at -0.40 percent. The marginal lending facility rate is 0.25 percent.
The bank reiterated its guidance for its asset purchases, deciding to halve monthly asset purchases after September and eventually end them in December.
Survey data from market research group GfK showed that Germany’s consumer confidence is set to weaken slightly in August.
The forward-looking consumer sentiment index fell to 10.6 in August from 10.7 in July. The score was forecast to remain unchanged at 10.7.
The currency has been trading in a negative territory against its major counterparts in the European session.
The euro weakened to 1.1673 against the greenback, from a 3-day high of 1.1744 seen at 9:15 pm ET. Continuation of the euro’s downtrend may see it challenging support around the 1.15 level.
Data from the Labor Department showed that first-time claims for unemployment benefits in the U.S. showed a modest increase in the week ended July 21.
The report said initial jobless claims rose to 217,000, an increase of 9,000 from the previous week’s revised level of 208,000.
The single currency remained lower at 129.72 against the yen, after rising to 130.26 at 5:00 pm ET. The euro is poised to challenge support around the 128.00 level.
Data from the Bank of Japan showed that Japan producer prices rose 1.2 percent on year in June, following two months at 1.0 percent.
On a monthly basis, producer prices added 0.2 percent after easing 0.1 percent in May.
Following a 3-day high of 1.1638 hit at 2:15 am ET, the euro changed its course and weakened to 1.1607 against the Swiss currency. Next key support for the euro is seen around the 1.15 level.
The common currency extended its early losses against the loonie, falling to near a 6-week low of 1.5245. The euro may possibly test support around the 1.51 level, if it falls further.
On the flip side, the euro bounced off to 0.8896 against the pound, reversing from a low of 0.8876 hit at 5:30 am ET. The euro is likely to test resistance around the 0.90 level.
The 19-nation currency reached as high as 1.7205 against the kiwi, up from a low of 1.7133 touched at 8:00 pm ET. Further uptrend may see the euro finding resistance around the 1.74 level.
The euro appreciated to a 2-day high of 1.5808 against the aussie, following a decline to 1.5727 at 5:00 pm ET. On the upside, 1.60 is possibly seen as the next resistance level for the euro.