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Forex - EUR/USD dragged lower by Draghi comments

Published 07/04/2013, 09:22 PM
Updated 07/04/2013, 09:23 PM
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Investing.com - The euro continued to lose ground against the U.S. dollar during Friday’s Asian after the European Central Bank meeting Thursday.

In Asian trading Friday, EUR/USD fell 0.12% to 1.2900. The pair was likely to find support at 1.2836, the low of May 29 and resistance at 1.3000.

On Thursday, European Central Bank President Mario said that the central bank’s monetary policy will “remain accommodative as long as needed”.

He added that rates will stay low for an “extended period of time.” Draghi’s comments came after the ECB held its benchmark interest rate at a record low 0.50% in July, in line with expectations. Goldman Sachs said the ECB "is more likely than not to ease further from here."

Goldman Sachs said the ECB "is more likely than not to ease further from here." Research house Capital Economics also said it believes ECB will engage in further easing activities later this year.

Elsewhere, EUR/GBP inched up 0.06% to 0.8575 after the Bank of England left its benchmark interest rate unchanged at 0.5% on Thursday and said economic data over the past few months was consistent with the recovery set out by the bank in its May inflation report, but warned that the "significant upward movement" in bond yields would weigh on the outlook for growth.

“In the Committee’s view, the implied rise in the expected future path of Bank Rate was not warranted by the recent developments in the domestic economy”, the BoE said.

Goldman said that "more unconventional easing" is likely from the Bank of England.

Meanwhile, EUR/JPY rose 0.18% to 129.42 while EUR/AUD fell 0.16% to 1.4099.


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