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Forex - EUR/USD hits session highs after ECB holds, Draghi ahead

Published 03/06/2014, 07:58 AM
Euro touches session highs vs. dollar as ECB holds
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Investing.com - The euro touched session highs against the dollar on Thursday, after the European Central Bank left monetary policy unchanged, but investors remained cautious ahead of the bank’s post-policy meeting press conference later in the session.

EUR/USD initially hit 1.3772, the highest since Tuesday, and was last up 0.15% to 1.3753.

The pair was likely to find support at 1.3700 and resistance at 1.3780, Tuesday’s high.

The euro found support after the ECB voted to leave its main interest rate unchanged at 0.25%. The bank also left the marginal lending facility unchanged at 0.75% and the overnight deposit rate on hold at zero.

Market participants were looking ahead to President Mario Draghi’s press conference later in the trading day, amid speculation that the bank could announce steps to tighten monetary policy, amid concerns over low inflation in the region.

Figures released last Friday showed the annual rate of inflation in the euro area remained unchanged at 0.8% in February, well below the ECB's target of just under 2.0%.

The euro extended gains against the yen, with EUR/JPY climbing 0.57% to 141.28, extending its pullback from a trough of 138.77 reached last week as concerns over the crisis in Ukraine weighed.

The common currency was also higher against the pound, with EUR/GBP up 0.19% to 0.8228.

Earlier Thursday the Bank of England left U.K. interest rates unchanged at their record low of 0.5%, and also left its quantitative easing program steady at 375 billion pounds.

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