Investing.com - The euro extended losses against the U.S. dollar on Thursday, tumbling to a one-month low as comments by European Central Bank President Mario Draghi strongly weighed on demand for the single currency.
EUR/USD hit 1.2364 during U.S. morning trade, the pair’s lowest since June 1; the pair subsequently consolidated at 1.2365, plunging 1.29%.
The pair was likely to find support at 1.2287, the low of June 1 and a multi-month low and resistance at 1.2539, the session high.
Sentiment on the euro was hit after ECB President Draghi said that the economic outlook faces downside risks, adding that indicators for the second quarter point to weakening growth in the euro zone.
Draghi said that there was probably a "renewed weakness in economic growth" in the last three months, with "heightened uncertainty".
Draghi also refused to speculate on the chances of a third round of Long Term Refinancing Operations, in which provides cheap loans to European banks in an attempt to encourage them to lend.
The comments came after the central bank cut its benchmark interest rate to a record low 0.75% in July, in a bid to bolster faltering growth in the region. The central bank also lowered its marginal lending to 1.50% from 1.75% and the deposit facility rate to 0% from 0.25%.
Meanwhile, the greenback found support after positive U.S. employment data eased expectations for further monetary easing measures by the Federal Reserve.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 30 fell to a seasonally adjusted 374,000, compared to expectations for a decline to 385,000. The previous week’s figure was revised up to 388,000 from a previously reported 386,000.
The data came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 176,000 in June, easily surpassing expectations for an increase of 105,000. The previous month’s figure was revised down to a gain of 136,000 from a previously reported increase of 133,000.
A separate report showed that service sector activity in the U.S. grew at a slower rate than expected in June. The Institute of Supply Management said its non-manufacturing purchasing manager's index declined by 1.6 points to 52.1 in June from a reading of 53.7 in May.
Analysts had expected the index to decline by 0.7 points to 53.0 in June.
Elsewhere, the euro was sharply lower against the pound with EUR/GBP shedding 0.74%, to hit 0.7975.
Earlier in the day, the Bank of England left its key lending rate at 0.5% but lifted its asset purchase program by GBP50 billion pounds, in order to shield the recession hit U.K. economy from the ongoing debt crisis in the euro zone.
EUR/USD hit 1.2364 during U.S. morning trade, the pair’s lowest since June 1; the pair subsequently consolidated at 1.2365, plunging 1.29%.
The pair was likely to find support at 1.2287, the low of June 1 and a multi-month low and resistance at 1.2539, the session high.
Sentiment on the euro was hit after ECB President Draghi said that the economic outlook faces downside risks, adding that indicators for the second quarter point to weakening growth in the euro zone.
Draghi said that there was probably a "renewed weakness in economic growth" in the last three months, with "heightened uncertainty".
Draghi also refused to speculate on the chances of a third round of Long Term Refinancing Operations, in which provides cheap loans to European banks in an attempt to encourage them to lend.
The comments came after the central bank cut its benchmark interest rate to a record low 0.75% in July, in a bid to bolster faltering growth in the region. The central bank also lowered its marginal lending to 1.50% from 1.75% and the deposit facility rate to 0% from 0.25%.
Meanwhile, the greenback found support after positive U.S. employment data eased expectations for further monetary easing measures by the Federal Reserve.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 30 fell to a seasonally adjusted 374,000, compared to expectations for a decline to 385,000. The previous week’s figure was revised up to 388,000 from a previously reported 386,000.
The data came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 176,000 in June, easily surpassing expectations for an increase of 105,000. The previous month’s figure was revised down to a gain of 136,000 from a previously reported increase of 133,000.
A separate report showed that service sector activity in the U.S. grew at a slower rate than expected in June. The Institute of Supply Management said its non-manufacturing purchasing manager's index declined by 1.6 points to 52.1 in June from a reading of 53.7 in May.
Analysts had expected the index to decline by 0.7 points to 53.0 in June.
Elsewhere, the euro was sharply lower against the pound with EUR/GBP shedding 0.74%, to hit 0.7975.
Earlier in the day, the Bank of England left its key lending rate at 0.5% but lifted its asset purchase program by GBP50 billion pounds, in order to shield the recession hit U.K. economy from the ongoing debt crisis in the euro zone.