Investing.com - The euro strengthened against the dollar on Thursday after the European Central Bank concluded a monetary policy meeting by holding off implementing fresh stimulus measures to ward off deflationary threats in the region.
In U.S. trading, EUR/USD was up 0.35% at 1.2663, up from a session low of 1.2614 and off a high of 1.2691.
The pair was likely to find support at 1.2570, Tuesday's low, and resistance at 1.2716, Monday's high.
Despite its recent rate cuts and announced plans to buy assets, the European Central Bank concluded on Thursday it would take a wait-and-see approach to current stimulus tools before loosening policy further should the need arise.
ECB President Mario Draghi reiterated that the bank is unanimous in its commitment to using additional unconventional measures if necessary.
He added recent data confirmed that economic growth in the currency bloc is losing momentum and said that the outlook for inflation remained subdued.
Recent data revealed that the euro area's inflation rate slumped to a five-year low of 0.3% in September.
The ECB head also outlined details of its asset-purchasing program announced last month, which will see the purchase of covered bonds beginning this month and asset-backed securities later in the fourth quarter.
The program is to run for two years and will substantially increase the ECB’s balance sheet, he said, adding the program will also help get inflation back to the ECB’s long term target of 2%.
The ECB held its benchmark interest rate at a record-low 0.05%, its marginal lending rate at 0.30% and left its deposit facility rate unchanged at -0.20%.
Meanwhile in the U.S., the Labor Department reported earlier that the number of individuals filing for initial jobless benefits in the week ending Sept. 27 decreased by 8,000 to 287,000 from the previous week’s revised total of 295,000.
Analysts had expected jobless claims to rise by 2,000 to 297,000 last week, which gave the dollar some support.
The data came after payroll processor ADP on Wednesday said that the U.S. private sector added 213,000 jobs last month, slightly ahead of expectations for jobs growth of 210,000.
Investors were now looking ahead to Friday’s U.S. nonfarm payrolls report, which was expected to show that the economy about 215,000 jobs in September.
Elsewhere, the euro was up against the pound, with EUR/GBP up 0.59% at 0.7846, and down against the yen, with EUR/JPY down 0.24% at 137.12.
On Friday, expect markets to track the U.S. jobs report.