Investing.com - The euro plummeted against the dollar on Thursday after the European Central Bank cut interest rates by 25 basis points, which came as no surprise, though comments from ECB President Mario Draghi over the possibility of implementing negative deposit rates for commercial lenders sent the single currency diving.
A surprising drop in the number of Americans filing for initial jobless claims bolstered the greenback's appeal and sent the pair falling further before it trimmed earlier losses.
In U.S. trading on Thursday, EUR/USD was down 0.94% at 1.3056, up from a session low of 1.3038 and off from a high of 1.3242.
The pair was likely to find support at 1.2956, the low from April 24, and resistance at 1.3242, the earlier high.
An ECB decision to cut interest rates to 0.50% from 0.75% met with little surprise, though comments from Draghi afterward that the ECB may charge banks to hold excess reserves sent the euro dropping.
Meanwhile in the U.S. the U.S. Department of Labor reported earlier that the number of people filing for initial jobless claims last week fell by 18,000 to 324,000, a five-year low.
Analysts were expecting the figure to come in at 345,000 claims.
Separately, official data showed that the U.S. trade deficit narrowed by 11% to USD38.8 billion in March compared to a USD43.6 billion deficit in February, as imports fell sharply.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.73% at 0.8412, and EUR/JPY trading down 0.29% at 128.00.
On Friday, the European Union is to release its economic forecasts for European Union countries.
The U.S. will unveil government data on nonfarm payrolls and the unemployment rate as well as data on average hourly earnings and factory orders.
In addition, the ISM is to release data on U.S. service-sector activity, a leading economic indicator.
A surprising drop in the number of Americans filing for initial jobless claims bolstered the greenback's appeal and sent the pair falling further before it trimmed earlier losses.
In U.S. trading on Thursday, EUR/USD was down 0.94% at 1.3056, up from a session low of 1.3038 and off from a high of 1.3242.
The pair was likely to find support at 1.2956, the low from April 24, and resistance at 1.3242, the earlier high.
An ECB decision to cut interest rates to 0.50% from 0.75% met with little surprise, though comments from Draghi afterward that the ECB may charge banks to hold excess reserves sent the euro dropping.
Meanwhile in the U.S. the U.S. Department of Labor reported earlier that the number of people filing for initial jobless claims last week fell by 18,000 to 324,000, a five-year low.
Analysts were expecting the figure to come in at 345,000 claims.
Separately, official data showed that the U.S. trade deficit narrowed by 11% to USD38.8 billion in March compared to a USD43.6 billion deficit in February, as imports fell sharply.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.73% at 0.8412, and EUR/JPY trading down 0.29% at 128.00.
On Friday, the European Union is to release its economic forecasts for European Union countries.
The U.S. will unveil government data on nonfarm payrolls and the unemployment rate as well as data on average hourly earnings and factory orders.
In addition, the ISM is to release data on U.S. service-sector activity, a leading economic indicator.