Investing.com - The euro hit session highs against the dollar on Thursday after the European Central Bank cut interest rates for the first time in 10 months amid concerns over the deteriorating economic outlook in the euro zone.
EUR/USD hit 1.3242 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3203, gaining 0.19%.
The pair was likely to find support at 1.3119, the session low and resistance at 1.3241, Wednesday’s high and a two-month high.
The ECB cut the benchmark interest rate by 0.25 basis points to a record-low 0.5%.
The central bank also lowered its marginal lending facility to 1% from 1.5% and left its deposit facility rate unchanged at 0.0%.
Earlier in the week official data showed that inflation in the euro zone fell to 1.2% in April, below the bank’s 2% targeted inflation rate.
Investors were awaiting comments from President Mario Draghi at the bank’s post-policy meeting press conference later in the session.
The euro was little changed against the pound and the yen following the announcement, with EUR/GBP dipping 0.05% to 0.8467 and EUR/JPY edging up 0.07% to 128.44.
Earlier Thursday, data showed that the euro zone’s final manufacturing purchasing managers’ index for April fell to 46.7, from 46.8 in March and a four month low.
Germany’s final manufacturing PMI dropped to 48.1 from 49.0 in March.
EUR/USD hit 1.3242 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3203, gaining 0.19%.
The pair was likely to find support at 1.3119, the session low and resistance at 1.3241, Wednesday’s high and a two-month high.
The ECB cut the benchmark interest rate by 0.25 basis points to a record-low 0.5%.
The central bank also lowered its marginal lending facility to 1% from 1.5% and left its deposit facility rate unchanged at 0.0%.
Earlier in the week official data showed that inflation in the euro zone fell to 1.2% in April, below the bank’s 2% targeted inflation rate.
Investors were awaiting comments from President Mario Draghi at the bank’s post-policy meeting press conference later in the session.
The euro was little changed against the pound and the yen following the announcement, with EUR/GBP dipping 0.05% to 0.8467 and EUR/JPY edging up 0.07% to 128.44.
Earlier Thursday, data showed that the euro zone’s final manufacturing purchasing managers’ index for April fell to 46.7, from 46.8 in March and a four month low.
Germany’s final manufacturing PMI dropped to 48.1 from 49.0 in March.