Investing.com - The euro trimmed losses against the U.S. dollar on Thursday, easing off four-month lows as investors were still digesting comments by European Central Bank President Mario Draghi and a 0.10% rate cut.
EUR/USD pulled away from 1.3503, the pair's lowest since February 6, to hit 1.3576 during U.S. morning trade, still down 0.18%.
The pair was likely to find support at 1.3478, the low of February 3 and resistance at 1.3643, the session high.
The single currency came under broad selling pressure earlier, after the ECB lowered its benchmark interest rate to a record-low 0.15% from 0.25%, compared to expectations for a cut to 0.1%.
The central bank also cut its marginal lending to 0.40% from 0.75% and lowered its deposit facility rate to -0.10% from 0.0%.
Speaking at the ECB’s post-policy meeting press conference, Mario Draghi said the rate decision would contribute to bringing inflation rates closer to the centrak bank's target of just below 2% and that it is determined to safeguard this anchoring.
Draghi added that key ECB rates will remain at present levels for an extended period of time, but that the bank is prepared to act swiftly with further monetary easing measures, including asset-backed security purchases, in case of a prolonged period of low inflation.
To support bank lending, Mario Draghi said the ECB we will be conducting a series of Targeted Longer Term Refinancing Operations (TLTROs), all of which will mature in September 2018. Two successive TLTROs are scheduled to be launched in September and December 2014, he added.
Earlier Thursday, data showed that retail sales in the euro zone rose 0.4% in April, more than the expected 0.1% uptick, after a 0.1% gain in March, whose figure was revised down from a previously estimated 0.3% increase
A separate report showed that German factory orders rose 3.1% in April, beating expectations for a 1.3% increase, after a 2.8% decline the previous month.
In the U.S., the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 31 increased by 8,000 to 312,000 from the previous week’s revised total of 304,000.
Analysts had expected jobless claims to rise by 6,000 to 310,000 last week.
The euro was also lower against the pound, with EUR/GBP declining 0.38% to 0.8093.
In a widely expected move, the Bank of England's Monetary Policy Committee earlier voted to keep interest rates on hold at their current record low of 0.5%. The bank also made no change in its quantitative easing program, which remains at £375 billion.
The decision came after data showed that U.K. house prices rose by 3.9% last month, exceeding expectations for a 0.7% gain, after a 0.3% fall in April, whose figure was revised from a previously estimated 0.2% slip.